Textile factories across Bangladesh are under pressure. Machines run around the clock to meet the demand of international brands, but rising energy costs, stricter sustainability requirements, and frequent power disruptions are making it harder for manufacturers to stay competitive.
Conventional energy has become very expensive, and global buyers demand greater sustainability, including renewable energy, higher efficiency standards, and responsible resource management. Additionally, the government has set a target for Bangladesh to achieve 30% renewable energy by 2030. While energy efficiency audits are currently voluntary for designated high-energy consumers, there are discussions about making them mandatory in the future. This policy aims to advance climate protection, enhance Bangladesh’s competitiveness, and reduce reliance on fossil fuels. It also seeks to minimize production downtimes caused by unreliable power supply and strengthen compliance with international standards.

Investments are worthwhile

Against this backdrop, not only the export-oriented apparel and textile industry but also energy-intensive sectors such as cement and steel recognize that investing in energy optimization is unavoidable. The government promotes investments in solar energy and energy efficiency through subsidized loans.
Studies show that introducing resource-efficient processes and machines pays off:

• In the apparel and textile industry, energy savings of 25–31% can be achieved.
• In the steel and cement industries, savings range between 22–32%.

Integrated solutions deliver the greatest benefits

However, transitioning to energy-efficient operations requires a systematic analysis of potential savings, followed by financial assessments, project planning, and ultimately implementation. The highest impact comes from tailored, integrated solutions, such as combining modern efficiency measures, waste heat recovery, solar energy, and efficient water use.
Bangladesh lacks local partners for such projects, prompting many Bangladeshi companies to actively seek German solution providers, knowing that "Made in Germany" technology and expertise are particularly high-quality, advanced, and efficient.
However, it is often difficult for companies in Bangladesh to find suitable German partners. Conversely, German firms are hesitant to invest in Bangladesh if they are unfamiliar with the market.

Support for project development

The German Project Development Program (PDP) aims to facilitate the implementation of climate- and resource-friendly projects for both sides.
"Our approach is to offer industry and commerce in Bangladesh an integrated solution combining solar energy and energy efficiency. We visit factories to identify and assess bankable projects. Once these projects are developed, we work to find the most suitable German solution providers for each technology, ensuring that customers benefit from coordinated and customized expert services," explains Shuvajit Mandal, PDP Country Manager for Bangladesh.
These services are free of charge for participating companies.

First-hand information

The opportunity to establish business connections was also a key focus of the German Training Week (GTW) on Energy Efficiency, organized by the Project Development Program in February 2025 in Dhaka. German providers showcased their expertise to local company representatives and energy auditors.
For the first time, a structured training program on energy efficiency took place during the training week, specifically tailored to the industrial sector in Bangladesh.

From project inquiries to solid solutions
Seven concrete project inquiries from Bangladeshi participants at the GTW demonstrate the high demand for sustainable energy projects. Companies are particularly interested in:

• Highly efficient motors, boilers, and drives
• Cogeneration (combined heat and power systems)
• Automation technologies

"Our goal is to further develop these project inquiries into viable solutions and pass them on to German providers for implementation," summarizes Country Manager Mandal.
These projects will make Bangladeshi companies more climate- and resource-efficient, competitive, and successful—offering strong incentives for others to follow suit.