The country's businesses on Sunday called for an uninterrupted supply of gas and electricity to run mills and factories smoothly and continue industrial growth.
They highlighted the pivotal role that captive power plants (CPPs) currently play in ensuring higher operational efficiency (up to 80 per cent) compared to the national grid.
However, they stressed the need to improve the national grid's infrastructure, especially the distribution system, to enhance the power quality for better synchronisation of grid power and CPPs for best possible energy efficiency.
A host of experts made the observations at a seminar styled 'Captive Power Generation for Industries in Bangladesh - Overview and Recommendations' at Bangladesh University of Engineering and Technology (BUET).
Organised by the Institute of Energy and Sustainable Development (IESD), the seminar brought together experts, academics, policymakers and industry leaders to explore findings and recommendations on improving energy efficiency in the industrial sector through captive power solutions.
BUET professors also presented a study with the same title calling for policymakers to urgently address inefficiencies in CPPs to ensure sustainable industrial growth and improve energy efficiency.
The keynote paper recommended prioritising infrastructure upgrades and adopting advanced technologies to enhance power quality, mitigate industrial losses, and balance the benefits of CPPs with a demand for a modernised grid.
"Critical steps include mandating the use of exhaust gas and jacket water heat recovery systems across industries, which can boost overall efficiency to over 75 per cent, significantly conserving natural gas and reducing environmental impacts," the study said.
Additionally, it also said policies should discourage the installation of oversized generators and encourage operating generators at loads above 85 per cent to optimise performance and minimise wastage.
According to the paper, an estimated 37.3 per cent of industries lack the exhaust gas heat recovery system, while 61.2 per cent do not utilise jacket water heat recovery.
"Industries using both systems report efficiencies of around 65 per cent, compared to the national average of 35.3 per cent for CPPs. The nationwide implementation of these systems could result in annual gas savings of approximately 42.24 billion cubic feet, underscoring their economic and environmental value."
The keynote said operational inefficiencies further hindered CPPs' performance as many generators operated at low loads-often below 50 per cent-due to improper sizing or insufficient gas pressure, drastically cutting efficiency.
Experts emphasised the importance of running generators closer to full capacity with an eye to achieving efficiencies exceeding 40 per cent.
"Poor grid reliability exacerbates these issues, with frequent power outages caused by unstable frequency and voltage profiles leading to substantial losses for industries reliant on consistent energy supply."
Despite their inefficiencies, according to the paper, CPPs remain the preferred power source for industries, given the unreliability of the national grid.
As of June 2023, CPPs accounted for 18.3 per cent of Bangladesh's installed capacity, highlighting their critical role in sustaining industrial operations.
However, their long-term viability depends on addressing these inefficiencies and optimising resource use.
Bangladesh Energy Regulatory Commission chairman Jalal Ahmed was present as the chief guest at the seminar chaired by IESD director Prof Dr Md Ali Ahammad Shoukat Choudhury. BUET pro-VC Prof Dr Abdul Hasib Chowdhury joined the event as the special guest.
The keynote, delivered by research team member Dr Md Aman Uddin, assistant professor of mechanical engineering, presented the findings of a comprehensive study on CPPs in Bangladesh.
During the panel discussion, moderated by Prof Dr Md Ziaur Rahman Khan, participants highlighted the CPPs' role in ensuring energy security, reliability and cost-effectiveness.
Business leaders, including ACI Group chairman M Anis Ud Doula, Mosharaf Group chairman and managing director Mosharaf Hossain, Asia Composite Mills Ltd managing director Md Masud Rana and JM Fabrics Ltd managing director Azizur R Chowdhury, along with representatives from BTMA, RMG, steel, food and beverage, pharmaceutical and cement sectors, shared their insights and concerns there.
IESD director Dr Shoukat sought collaboration to implement these recommendations for sustainable industrial growth.