Energy efficiency in the household sectorcan save us thousands of crores

The Ukraine-Russia crisis has prompted the countries to revisit their energy policies and energy consumption patterns. The high prices of fossil fuels in international markets bring forth the question of how much higher prices the consumers can bear. 

However, as Einstein said, "In the middle of difficulty lies opportunity", the high prices of energy can also incentivise energy savings. As an energy importing nation and already being severely affected due to high price volatility of fossil fuels with impacts on the foreign currency reserves, Bangladesh has increased fuel prices and deployed measures, such as, load shedding, change in office timings, etc. 

Additionally, energy efficient applianceshave the potential to reduce huge energy demands at the household level.

According to the energy efficiency and conservation masterplan published in 2016, more than 50% of electricity generated in the country is consumed by the household sector. Of the total energy consumption of around 18,000 GWh per annum by the sector, 35% is used to run fans, followed by 21% for lighting, 13% for refrigeration and more than 12% for air conditioning. 

The remaining energy is used to run TVs, pumps, irons and other appliances. Notably, efficient air conditioners and refrigerators can save around 50% of energy compared to inefficient ones. Similarly, LED lights have the potential to reduce 50% energy consumption.

Fans with efficient motors may save 25% energy. Combining the potential of all efficient appliances, Bangladesh can reduce around 35% of household energy consumption equivalent to 6,500 GWh per annum. 

This has been substantiated in the energy efficiency and conservation master plan of Bangladesh. In monetary terms, annual savings could be several thousand crore BDT. This could eventually help reduce our energy imports and save foreign currency. More importantly, other sectors of the country could be benefited. 

It is, however, to be noted that households are increasingly adopting efficient appliances, such as LEDs, air conditioners with inverter technology and the like. As such, we are already saving energy compared to the business-as-usual scenario. 

Yet, the concern is that LED lights are even sold by street vendors at a very low price with complete disregard to energy efficiency.  

Hence, what is imperative to achieve the identified energy savings from the households is to have approved energy efficiency standards for the appliances available in the local market.

The energy efficiency standards and labelling regulation of Bangladesh is already drafted and is expected to be approved by the government. Once it is approved, it will establish the minimum energy performance standards for different appliances and labels on the basis of their energy efficiency level. 

This would allow household consumers to choose from appliances of different labels from the market. Alongside this, proper market monitoring would help ensure the availability of quality appliances and phasing out of inefficient appliances. 

In addition to the approval of energy efficiency standards and labelling regulation, awareness raising campaigns for household consumers shall be consistently carried out to develop an energy saving culture in the country. Awareness raising has significant importance to address the rebound in energy consumption. 
Finally, to ward off part of the effects of international price shocks, such as the one we are currently experiencing, we need, among other things, to enhance energy efficiency. The household sector remains an attractive area for increasing energy efficiency. 
In that vein, the availability of proper regulation and the assurance on the quality of appliances have the potential to ensure the adoption of efficient appliances. 
And on the energy front, we need to start preparing now for what future disruptions may bring. 

Shafiqul Alam is an environmental economist; He is an energy fellow of the national Bureau of Asian Research, USA