CPD reveals 1,768 MW rooftop solar energy potential in garment sector

Bangladesh's ready-made garment (RMG) sector holds the potential to generate 1,768.3 MW of solar power by utilizing rooftop spaces across 3,320 factories, according to a study by the Centre for Policy Dialogue (CPD). The findings were presented at a seminar titled ‘Industrial Rooftop Solar in RMG Sector: Investment Opportunity.' Under Chinese FDI Lens, held at BRAC Centre in Mohakhali, Dhaka, on 20 August. CPD Research Associate Abrar Ahamed Bhuiyan presented the research paper.

The study revealed 9.72 million square meters of usable rooftop space across 61 large, 320 medium, and 1,922 small factories. Small factories can yield 484.7 MW, medium ones 637 MW, and large ones 646.5 MW. An immediate investment of $188.2 million is required for 2,303 factories with a capacity of 300 kW or higher. While the total investment potential stands at $103 million (BDT 12,669 crore), high bank interest rates exceeding 10.5% and duty assessments pushing tariffs over 27% remain major impediments.

Presiding over the session, Dr. Khondaker Golam Moazzem, Research Director and Distinguished Fellow at CPD, noted that 500 factories are currently ready for self-funded solar installation. Concessional 'Green Finance' at 6.5% interest could onboard another 1,300 factories. While renewable energy supplies only 3% of current RMG power needs, it can be expanded to 14%. Global buyers like H&M, Inditex, Walmart, and Gap are enforcing green compliance, making 35% renewable energy adoption necessary by 2035.

Khandaker Golam Moazzem stated, "500 factories are ready to switch to solar power production. With various incentives, it will soon be possible for another 1,300 factories to generate solar electricity. An estimated 188 million in$investmentisneeded\; for\; electricitygenerationusingrooftopsolar\; alone.This\; means\; a\; significant\; potential\; for\; solar\; power\; in\; the\; garment\; sector\; can\; be\; leveraged\; with\; an\; investment\; of\; less\; than\; 200$ million."

BIDA Country Liaison Nusrat Jahan mentioned renewable energy tops BIDA’s 2024 'Heatmap' for Chinese FDI. BREB Chief Engineer Swapan Banik committed to bringing all BREB office roofs under solar power by December. Zahidul Alam from the Renewable Energy Association raised concerns over effective 27% import duties, while BKMEA Director Minhajul Haq emphasized severe grid rationing where factories receive only 7-8 hours of power. Ha-Meem Group’s Power Head Tanul Chakraborty highlighted space constraints, noting their 29.2 MW solar setup meets only 15% of electricity needs due to multi-story factory designs. 

Shah Nusrat Jahan, Director of the Bangladesh Investment Development Authority (BIDA), stated, "Just a few years ago, there was little discussion about solar power in the country, but now various government departments are initiating solar power production."

She mentioned that BIDA prepared a 'heatmap' by the end of 2024, in which the renewable energy sector ranks first among 19 categories.

"Among international investors, China has shown interest in funding renewable energy projects."

Minhajul Haque, Director of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), highlighting the gas and electricity crisis in factories, said, "Previously, the government rationed gas and electricity for garment factories due to shortages. Now, even seven or eight hours of supply are not available in a 24-hour day."

Tanul Chakraborty, Head of Power and Energy at Ha-Meem Group, underscored the practical limitations of the industrial sector, noting that despite installing 29.2 megawatts of rooftop solar at their facility, it only meets 15% of their total electricity demand and 6% of their total energy demand. This is primarily because factories are multi-storied, limiting roof space compared to demand. For instance, at their factory in Jiranee Bazar, electricity demand is 1.5 megawatts, but only 272 kilowatts of solar capacity could be installed on the roof. 
//DBTech/BDNT/MSI//