Assessing the Impact of Adopting Electricity-saving Electronics in Saving

Power Consumption at Household level in Dhaka

Research Conducted By
Examination Roll no: 5007
Registration no: HA-5763, Session: 2008-09
Department of Development Studies
University of Dhaka




Declaration
Students Declaration
I certify that this research does not incorporate without acknowledgement any material
previously submitted for a degree or diploma in any university; and that to the best of my
knowledge and belief it does not contain any material previously published or written by
another person except where due reference is made in the text.


Examination Roll: 5007
Registration no: HA-5763, Session: 2008-09
Department of Development Studies
University of Dhaka



Supervisors Declaration
I believe that this research is properly presented, conforms to the best specifications of thesis
presentation in the university and is prima facie worthy of examination.



Lecturer
Department of Development Studies
University of Dhaka
i

Acknowledgement
I would like to acknowledge with gratitude the help and guidance received from Abul Bashar
Mohammad Omor Faruque, Lecturer, Department of Development Studies, University of
Dhaka, in conducting this study. His motivation has empowered me to broaden my horizon
on the study topic and assimilate various issues in the study. I want to express my cordial
gratitude to the Department of Development Studies for allowing me to do this research.
I would also like to express my gratitude to the honorable chairman, Department of
Development Studies, University of Dhaka, for providing access to the departmental
facilities. I also wish to record my sincere thanks to honorable batch coordinator S. M.
Humayun Kabir and all the teachers of the Department of Development Studies, University
of Dhaka for their valuable suggestions and sincere cooperation.
I would like to thank to the authority of University of Dhaka for giving me the opportunity of
research and providing me with books and journals relevant to my works.
I wish to take this opportunity to thank my family members and relatives for their co-
operation and constant encouragement in completing this work. In addition, I thank to all
friends of University of Dhaka and other well-wishers in this connection.
Finally, I am grateful to those respondents from whom I have collected data for this research.
They have provided information willingly and in a co-operative manner.
Finally for the errors and remaining imperfection in the study, the entire responsibility lies
with me alone.


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Table of Contents

Abstract ......................................................................................................................................v
Abbreviations ........................................................................................................................... vi
Chapter 1 ....................................................................................................................................1
Energy Conservation Scenario in Bangladesh ...........................................................................1
1.1 Background of the Research .........................................................................................................1
1.2 Aim of the Research......................................................................................................................2
1.3 Justification of the Research .........................................................................................................2
1.4 Research question .........................................................................................................................3
1.5 Research Methodology & Field Work ..........................................................................................3
1.5.1 Research Design .....................................................................................................................3
1.5.2 Research area .........................................................................................................................4
1.5.3 Sources of Data ......................................................................................................................4
1.5.4 Data Collection ......................................................................................................................4
1.5.5 Data Analysis .........................................................................................................................5
1.5.6 Limitations .............................................................................................................................5
1.6 Layout of Chapters ........................................................................................................................5
Chapter 2 ....................................................................................................................................6
Theoretical Concepts Regarding Energy Consumption .............................................................6
2.1 Social-Psychological Model of Behavior .....................................................................................6
2.2 Ethics of Conservation ..................................................................................................................8
2.3 Pre-condition to Achieve Human Development ........................................................................ 10
2.4 Green Technology and Energy Efficiency ................................................................................. 12
Chapter 3 ..................................................................................................................................14
Few Important Concepts Regarding Energy Conservation .....................................................14
3.1 Energy Meter ............................................................................................................................. 14
3.2 Renewable Energy (RE) in Bangladesh ..................................................................................... 15
3.3 National Renewable Energy Policy (NREP) ............................................................................. 17
3.4 Power Tariff Rate ....................................................................................................................... 19
3.5 Domestic Appliances ................................................................................................................. 21
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Chapter 4 ..................................................................................................................................22
Data Analysis and Findings .....................................................................................................22
4.1 Data Description of Power Consumption Survey of Electronics ............................................... 22
4.2 Data Analysis of Power Consumption Survey of Electronics ................................................... 23
4.3 Data Description of Power Consumption Survey of Households .............................................. 27
4.4 Data Analysis of Power Consumption Survey of Households................................................... 29
Chapter 5 ..................................................................................................................................33
Recommendation and Conclusion ...........................................................................................33
5.1 Energy Conservation Scenario around the World ...................................................................... 33
5.2 Conclusion ................................................................................................................................. 36
References ................................................................................................................................37
Appendix ..................................................................................................................................41
Questionnaire for Household Survey ............................................................................................... 41
Check List for collecting Electronic Appliances Data (From sellers) ............................................. 42



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List of Tables
Table No. and Name Page No.
Table 3.1 Rise of Power Tariff from December 2011 to March 2012 20
Table 3.2 Updated Power Tariff from 1 September, 2012 20
Table 4.1 Appliance with Power rating and Price 23
Table 4.2 Appliances and Company Description 23
Table 4.3 Appliances with per day usage converting into Unit (1KWh=1 Unit) 24
Table 4.4 Total Bill of Best, Medium and Worst electronics after Lifetime usage 25
Table 4.5 Total Cost of Appliances after lifetime usage 26
Table 4.6 Initial savings and Lifetime loss between Best and Worst appliances 27
Table 4.7 HHs Electricity Consumption and Average Bill (AprilSeptember, 2012) 28
Table 4.8 HHs calculated with Best, Medium and Worst appliance options 29
Table 4.9 Average expenditure of the HHs regarding Best appliances 30

v

Abstract
Power crisis, the demand-supply gap in electricity, is a stark, visible phenomenon in the day-
to-day life in Bangladesh. This research has collected power consumption data from
domestic consumers in Dhaka to understand the present trend of power consumption. Also,
information on energy -saving electronics about power-rating and price was collected to
understand the new technologies regarding power conservation and operational cost in their
lifetime. These collected data was analyzed based on the context of Psycho-Social behavior
of Conservation, Ethics of Conservation, and Green Revolution in the perspective of power
consumption and savings. Furthermore, the concept of energy as precondition to human
development has been conceptualized in the study. The research resorted quantitative method
in data analysis and making decisions about rational choice about which electronics to
purchase. Data from domestic consumers has been gathered by using questionnaire survey
and the electronics information has been collected with the help of a simple checklist. The
research also estimated probable conservation at household level in their monthly bills
assuming the adoption of energy -saving electronic goods. Finally, the research has
discussed how the developed world is dealing with such issues and the role of the people and
government in this endeavor of energy conservation.









vi

Abbreviations
BERC Bangladesh Energy Regulatory Commission
BPDB Bangladesh Power Development Board
CFL Compact Fluorescent Light
DPDC Dhaka Power Distribution Company
ECE Energy -saving Electronics
EEAP Energy Efficiency Action Plan
EM Energy Meter
EU European Union
GDP Gross Domestic Product
GHGs Green House Gases
GOB Government of Bangladesh
HH Household
IBM International Business Machines
LDCs Least Developed Countries
LGED Local Government Engineering Department
MoF Ministry of Finance
MPEMR Ministry of Power, Energy and Mineral Resources
NREP National Renewable Energy Policy
PTR Power Tariff Rate
QRPP Quick Rental Power Plant
RE Renewable Energy
REB Rural Electrification Board
RERC Renewable Energy Research Centre
USA United States of America
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Chapter 1
Energy Conservation Scenario in Bangladesh
1.1 Background of the Research
Bangladesh is a strongly growing developing economy but having serious limitation in
energy production and consumption. In recent days, Energy chiefly electricity has
become the major hurdle in the further development of economy. Modern lifestyle and
economic activity cannot go ahead without the support of energy. It is so vital that now-a-
days sometimes the well-being of an economy is estimated through the level of consumption
of energy. Over the last two decades, the country has been changing from a predominantly
agrarian economy to an industrial and service economy. The agricultural sector is also in
need of electricity to avoid massive fossil fuel consumption. The enormous expansion of
private sector and remittance from expatriate workers play a key role in the national
economy. With the expansion of private sector, Bangladesh is thrusting in rapid urbanization,
industrialization, infrastructure development, economic growth and also significant growth in
educational sector. To fulfill the countrys growth in economic sector and human
development sector, massive energy production is needed. Till now, however, the state of
Bangladeshs power development is not at par with the current demand and still working to
find a way for ramping energy production keeping mind the affordability. With higher Gross
Domestic Product (GDP) growth in industrial sector, demand for energy in Bangladesh has
been rising fast and would continue at this rate for the next few years.
Bangladesh is one of the most energy-starved countries in the world even by the standards of
the Least Developed Countries (LDCs). Annual energy consumption per capita (175kg of oil
equivalent or annual electricity power of 207.9 kWh in 2008) is one of the lowest in South
Asia and the developing world. Only about 55% of HHs have electricity (BPDB, 2010), and
these electricity consumers frequently face power outages and load shedding. Bangladesh is
feeling the pinch from the current lack of adequate power and intermittent load-shedding.
The Government of Bangladesh (GOB) has been trying to significantly increase electricity
production to mitigate the energy lacking. Bangladesh Power Development Board (BPDP)
circulated that maximum power generation in the history of Bangladesh was 6,350MW on
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04/08/12 (BPDB, 2012). In that day, people of Dhaka city was faced at least an hour load
shedding. So it is difficult to know the actual demand of power in Bangladesh.
1.2 Aim of the Research
Bangladesh is in the process of transition in many ways politically, economically and
socially. The country is experiencing an acute shortage of electric power that is likely to be
worsening day by day because the new power generation always falls short of the new
demand being created every day. Not only acutely in the summer but also throughout the
year, electricity crisis is hampering the day-to-day lives of the people from every part of the
society. It is very hard to find a quick solution to cover up the present energy gap situation.
This research has tried to understand the current electricity consumption in domestic
households (HHs) and its pattern, availability of energy -saving electronic goods in the
market, and awareness among the people about electricity conservation and its financial
benefits. The information gap between consumer and seller, and market failure due to this
gap is interpreted as the biggest barrier in promoting energy conservation. Analyzing the
National Renewable Energy Policy (NREP) 2008 is also an objective of this study about its
effect of energy consumption. This research has also looked into the best practices of other
countries to find the most possible areas to save electricity and successful strategies in raising
awareness of the people in conserving electricity.
1.3 Justification of the Research
In every ways of life, awareness among the people of Bangladesh is now increasing more
than ever. However, consciousness about electricity consumption and saving is largely absent
amongst the people of Bangladesh. As the issue of power conservation is new to the country,
there exist only a few researches, by energy-related experts, on the efficient use of electricity
and other fossil fuels, more pervasive use of renewable energies, bio-gas plants and so on.
There is a good study regarding energy conservation in the major cities in Bangladesh
covering only the electricity conservation possibility in in light bulbs (Hussain et al, 2009).
On the contrary this research focuses on domestic consumers of Dhaka city and covers a
broad range of home appliances used in everyday life such as heating, cooling, lighting,
entertaining and other electric goods for household chores. This research also plans to
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analyze the actual financial benefit and level of perception regarding electricity conservation
and energy saving electronics. This research also investigated about the presence of
electricity -saving goods in market and governments role in facilitating the promotion of use
of such goods. There are many works in the field of power generation and load shedding,
but this research is precisely focused on the topic saving and conservation of power. This
research would broaden our understanding about the financial benefit and electricity
consumption cutback presuming the current electric goods are replaced with the most energy
efficient one. This research would also help in generating awareness among the users of
electricity and help the policy makers to find out ways to solve the problem with limited use
of economic and natural resources. Though this study excludes industries, the results found
from households will also help in industrial energy conservation, other than the heavy
machineries.
1.4 Research question
The major research question pursued in this research is to assess the impact of use of Energy
-saving Electronics (ECE) on domestic power consumption and estimate the concurrent
financial benefit of this use.
To answer this question, some important issues related to this question are needed to be
answered. They are:
1. How the recent electricity bill is affecting the households?
2. Why Cost-Benefit analysis of ECE with medium and worst electronics is important?
3. How Watt is turning into Bangladesh Taka (BDT)?
4. What are the thoughts of private sector concerning about ECE?
5. Is the National Renewable Energy Policy (NREP) concerned about ECE?
1.5 Research Methodology & Field Work
1.5.1 Research Design
The research followed quantitative method because of the nature of research questions and
acquiring relevant data from respondents for generating maximum outcome from the data
sources. As this research also focuses on the level of awareness among the actors, it asked
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some descriptive questions from respondents. It focuses on the responsibilities of consumers,
private electronics sellers and their product regarding these issues. It also tries to generate an
overview of energy saving policies of other countries from which our government can learn. .
1.5.2 Research area
The research area of this study covers Dhaka- the only Mega city and the Capital of
Bangladesh, in this city; around 20 million people live and work for their livelihoods. Most
of the important government, nongovernment, civil, industrial and military infrastructures is
situated in and around this city. Dhaka has all types of economic classes in its residential
spaces. Only in 15-20 years, the outlook of the city has changed. There are now hundreds of
multistoried buildings, thousands of residential apartments, and also unknown number of
wood and bamboo made houses around the city. All these establishments consume the largest
proportion of electricity in the country. As a result, all other 63 districts of Bangladesh are
facing shortage of electricity.
1.5.3 Sources of Data
For preparing this research, both primary and secondary data has been gathered and
consulted.
Primary Data: The research is based on the primary data and information which are collected
from respondents of the surveyed area through a well-defined pre-scheduled questionnaire.
Secondary Data: Secondary data is collected from different sources including research
reports, internet journals, power-related publications, newspaper articles, government
policies and electricity conservation related web sites.
1.5.4 Data Collection
Household electric goods usage and electricity consumption data has been collected from 30
HHs by using self-completion questionnaire. The questionnaire contains the power
consumption and billing from October 2011 to September 2012. Data was also collected
from the companies who are selling the electronics in the market and they are categorized in
different groups based on power rating and price.
5

1.5.5 Data Analysis
The information collected from respondents is processed using Microsoft Office Excel. The
questions in survey are mostly objective in type.
1.5.6 Limitations
As the resource and time employed in the study are limited, only a small number of
respondents are surveyed in this research.
1.6 Layout of Chapters
The First chapter presents the background, aim and justification of research, research
questions and the methodology employed in the research. In the Second chapter, the
theoretical context regarding energy conservation has covered. The idea of green technology
and energy efficiency are conceptualized here from the perspective of energy consumption
and savings. These issues have been described also from the context of the theory of
motivation and ethics of conservation incorporating the framework of energy conservation.
In the Third chapter, the current power consumption scenario of Bangladesh has been
analyzed on the basis of the concepts that have been described in chapter two. Analysis of
NREP and other important concepts have also been mentioned in that chapter.
In the Fourth chapter, the information collected from the consumers and questionnaire survey
has been analyzed in different contexts. Description of the data collection and findings of the
study have also been scientifically presented in this chapter.
The Fifth chapter encompasses the recommendations and policy options for the government
regarding energy conservation. Finally, the findings of the research were summarized and
concluded with best hopes for the country.





6

Chapter 2
Theoretical Concepts Regarding Energy Consumption
Decades of research in sustainable energy and energy conservation has promoted to
undertake many initiatives in various countries for sustainable energy regime. The researches
and studies have also suggested various social and ethical perspectives in shaping the
conservation behavior in align with the human nature. Energy-conservation behavior, like all
other behavior, is multidimensional and sometimes hard to fathom, challenging our attempts
to explain and predict it. Research has demonstrated that there is no single and general
construct that predicts environmentally friendly behavior (Oskamp et al., 1991).In addition,
studies have not able to depict linkages between peoples expressed concern for the
environment and their own energy use. To understand the energy conservation from various
perspectives, the following theoretical concepts are helpful in comprehending the entire
scenario.
2.1 Social-Psychological Model of Behavior
The social-psychological model indicates that there is a behavioral model in the
psychological behavior in the human society, which can be influenced through knowledge,
values, personal characteristics, or attitudes. This model has integrated societal, group and
individual level process. Many researchers have worked on this model to understand various
aspects of energy conservation behavior (Costanzo et al., 1986; Darley & Beninger, 1981). It
also provides support systems to aid behavioral change and overcome barriers. Those barriers
are lack of information and everyday life needs and so on which are very much related to the
development of the nation. Studies supporting this model have shown that people were more
likely to make permanent changes in their energy behaviors. If there are new behaviors
which are easy and convenient to perform, people will be self-motivated to perform those
behaviors. When the human had the skills and resources needed to change behaviors, their
neighbors and friends were changing in similar ways and they made commitments to change
in public settings, they will also follow those behavioral patterns for their existence in the
society (Costanzo et al., 1986; Harrigan, 1991; Stern, 1992).
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McMakin et al. (2002) has reviewed the conditions under which people are more likely to
adopt energy-efficiency behaviors:
People view energy efficiency in terms of benefits to themselves rather than
restriction, especially in terms of increased thermal comfort and health
(Becker et al., 1981; Samuelson and Biek, 1991).
Energy use and savings are made visible, thus providing goals and motives
where they did not previously exist (Kempton, Darley and Stern, 1992; Stern
and Aronson, 1984).
Information is conveyed in a vivid, salient, and personal format (Costanzo et
al., 1986; Dennis et sl., 1990; Stern, 1992; Stern & Aronson, 1984), including
visual modeling of specific actions to be taken (Winnett, et al., 1985).
(McMakin, Malone and Lundgren, 2002)
McMakin et al. (2002) also discussed various social and motivational issues in energy
conservation behavior among consumers.
One fascinating aspect of the social-psychological model of energy use is in
social comparison. The idea is that comparison and even competition with
others increases motivation to achieve something perceived as positive.
According to social identity theory, people strive for a positive self-image,
and their membership in a group is itself perceived as part of their identity
(Tajfel, 1978; Tajfel and Turner, 1979). According to social comparison
theory, comparison with others reduces uncertainty and helps establish
standards of personal behavior (Festinger, 1954). These theories, and at least
one energy-related workplace study (Sieroetal., 1996), suggest that
emphasizing a common group identity can lead to more cooperative behavior
and improved performance by group members. (McMakin, Malone and
Lundgren, 2002)
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2.2 Ethics of Conservation
Until recently, the very idea of there being an 'ethic' concerning conservation might have
seemed strange. For some, even among those who now work on the formulation of an ethic
of conservation, this remains true. For them, humans remain at the center of ethical concern.
What has changed is not the basis of their ethic, but the realization of how fundamentally we
affect one another's lives through our relationship with our environment (Holland and
Rawles, 2001). However, the new environmental challenges have provoked a more radical
response, signaled by the appearance in the environmental literature of papers with titles such
as: "Is there a need for a new, an environmental ethics?"(Routley, 1973). They claim to have
discovered, or rediscovered, values existing outside and independently of the human domain
- in sentient animals or even all individual living things, in species, communities and
ecosystems, in soil, waters and rocks, and in the planet it self. The development of an ethic of
conservation faces another obstacle, which is the widespread perception that ethics are
beyond the reach of rational and critical discussion. Sometimes this view is supported by
referring to the diverse and culturally contingent origins of moral belief (Spellerberg, 1992).
In fact, how a belief has arisen is a separate question from the question of whether it is
rationally defensible or whether it is true. In any event, a result of this perception is that
ethical considerations are marginalized in favor of what are supposed to be more 'objective'
considerations of a scientific or utilitarian kind.
Holland and Rawles (2001) has also discussed the issues of ethics and conservation from two
different perspectives.
This perception is wrong on two counts. First, it is an illusion to suppose that
ethical considerations can be sidelined. Conservation objectives may indeed
be defended on scientific or utilitarian grounds, but to reach a decision on
these grounds presupposes an evaluative commitment to the view that these
considerations should hold sway. Value judgments are involved in the
decision as to which interests and considerations are legitimate; and the
question of legitimacy is a matter for critical evaluation. The second point is
that, fortunately perhaps for the conservation cause, it does not follow that
ethical debate is a mere battle of prejudices. There is a distinction to be drawn
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between judgments of value and judgments of taste. Taste, like prejudice, lays
no claim beyond the particular circumstance of the judgment, and is not called
upon to give an account of it. If a person claims like this, admire that, or hate
the other, their claims are not open to critical challenge (Holland and Rawles,
2001).
Ethics are not laws. They are not imposed by the state. Rather they are the norms, values,
beliefs, habits and attitudes that are embraced voluntarily as a society imposes on us. Laws
regulate behavior from outside; ethics regulate behavior from inside out. Ethics is something
that we carry with us wherever we are going and whatever we do. An ethic of conservation
explained by Michael J. Sandel, a political philosopher in Harvard, would embrace norms,
beginning with a sense of responsibility, a sense of stewardship, for the natural world
(Friedman, 2008).
Friedman (2008) also added that an ethic of conservation as,
Conservation is an ethic of restraint that says we have a responsibility to
preserve the earths resources and natural wonders in and of themselves,
because they constitute the ecosystem of life on which all living creatures on
this planet depend. But in addition to a sense of stewardship toward the
natural world, an ethic of conservation also has to include a spirit of
trusteeship. As Sandel argued, Stewardship involves responsibility for the
natural world. It is born of wonder and awe for the diversity of life and
majesty of nature. Trusteeship involves responsibility for future generations,
for those who will inhabit this place after our time. It is a form of solidarity
with our children and grandchildren (Friedman, 2008). He also indicates that
the ethics of conservation requires both stewardship and trusteeship with habit
of restraint that express respect for the earth that we live in and respect for
future generations. To become good stewards and goo trustees, we need to
develop new habits and attitudes toward consumption. We also need to rein
our tendency to regard the earth and its natural resources as wholly at our
disposal or present needs, wants and desires Friedman (2008).
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Some may think that conservation indicates lower consumption which will harm the
development process. But Glenn Prickett of Conservation International argued that
Conservation is not opposite of Consumption (Friedman, 2008). We need to consume to
live and to grow our economy, but at the same time we can save more. We just need to
identify those places and preserve in their natural state. Prickett said, If we are smart,
properly plan and are vigilant about protecting what we have set aside, there is more room
for conservation and consumption. People on both sides of the energy-environment debate
often confuse with this issue. It is important to recognize how important the nature is
consisting of clean water, clean air, healthy forests, healthy oceans and diversity in species
for our daily life and our spiritual well-being. So it is important to remember and act with
ethical perspectives regarding energy conservation, in other words nature conservation with
trusteeship and stewardship in environment.
2.3 Pre-condition to Achieve Human Development
According to the neo-classical economic approach, economic development is realized
through maximization of individual utilities and the accumulation of aggregate material
wealth. Neo-classical welfare economics acknowledges and accepts the differentiation of
welfare among members of the society (Ferguson, 1969). Increase in the differentiation of
welfare between different sections of the population can be encouraged so long as the overall
welfare is not on the decrease. From a dynamic point of view, neo-classical theory of
economic development emphasizes the accumulation of aggregate social welfare while less
attention is given to the fulfillment of human development potentials which must be at the
same level of magnitude across individuals (Pan, 2002). In neo-classical economic analysis,
few considerations are given to the security of the subsistence of the most disadvantaged and
the potentials of human development. Welfare improvement of the most disadvantaged is
considered an ethically right preference rather than a right of the poor to the fulfillment of
human development potentials.
Pan (2002) has talked about the energy as the modern service and its importance in human
development in todays world.
Access to modern energy services is fundamental to fulfilling basic social
needs, driving economic growth and fueling human development. This is
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because energy services have an effect on productivity, health, education, safe
water and communication services. Modern services such as electricity,
natural gas, modern cooking fuel and mechanical power are necessary for
improved health and education, better access to information and agricultural
productivity. There are wide variations between energy consumption of
developed and developing countries, and between the rich and poor within
countries, with attendant variations in human development. Furthermore, the
way in which energy is generated, distributed and consumed affects the local,
regional and global environment with serious implications for poor peoples
livelihood strategies and human development prospects. By comparing
modern energy use in developed and developing countries and argues that a
threshold of modern energy is required to achieve growth and improvement in
human development. A new term is using in this energy deficiency which is
called Energy Poverty. Energy poverty can be defined by United Nations
Development Program (UNDP) as the inability to cook with modern cooking
fuels and the lack of a bare minimum of electric lighting to read or for other
household and productive activities at sunset (UNDP 2005). By this
definition, the 2.5 billion people relying on biomass for cooking and the 1.6
billion people with no access to electricity could be classified as being energy
poor (Pan, 2002).
Energy is central to a range of services supporting human development, from modern
medical care, transportation, information and communications to lighting, heating, cooking
and mechanical power for agriculture. Equitable and sustainable development requires
making energy available for all, controlling emissions and shifting to new and cleaner energy
sources. Major energy inequalities persist across regions, countries, gender and classes.
Acknowledging that energy distribution cannot be considered apart from political and social
exclusion, the 65th United Nations (UN) General Assembly proclaimed 2012 as the
International Year of Sustainable Energy for All (UN,2011).
Electricity is an essential ingredient for both economic and social development in day to day
life. Its consumption is synonymous with modern life in the industrially developed world.
12

Communication, transportation, health service, food supply and preservation, housing,
offices and establishments, mills and factories all depend on adequate supply and availability
of electricity at an affordable price. Electricity must therefore be supplied dependably and at
a reasonable price. Therefore the prerequisite for the countrys progress is the electricity
supply compatible with demand, in a dependable manner. In todays world, electricity may
be not the basic human need but it is more important than basic needs because those needs
are now depending on this(Pan, 2002). In modern society, electricity is playing the most
important role to generate development. A countrys rate of growth and development is now
measuring on the per capita electricity consumption of that country(Pan, 2002). But now
environmental concern regarding electricity generation is getting more importance day by
day. Clean electricity is needed to have a proper development of a country. Sustainable
electricity generation and conservation of energy are now getting highlighted throughout the
world. As a result, all the countries off the world are now focusing in these two points for
efficient and sustainable development.
2.4 Green Technology and Energy Efficiency
Green technology is the development and application of products, equipment and systems
used to conserve the natural environment and resources, which minimizes and reduces the
negative impact of human activities. Innovations thereby help to decouple growth from
natural capital depletion and environmental pollution, for example towards more resource-
efficient and cleaner technologies. Some innovations can directly increase resilience to
environmental shocks. Catch-up innovations, that make the use of existing technologies more
widespread by adapting them to local contexts, are even more important for all countries.
They typically reduce production costs and increase enterprise competitiveness, and are
lower risk than frontier innovations. The introduction of new products, processes, business
models and other organizational methods, and marketing techniques, whether through
frontier or catch-up innovation, in principle contribute to the expansion of existing markets
and the creation of new markets, in the process increasing the job content and poverty
alleviation of growth.
Energy efficiency refers to products or systems using less energy to do the same or better job
than conventional products or systems. In todays world, there are many efficient products,
13

homes, and buildings. They include efficient appliances for the kitchen, heating and cooling
equipment, home electronics, and other products to weatherize our homes and improve the
efficiency of buildings and industrial facilities. Unfortunately, energy efficiency is not used
as often as it could be. People at home or in business in many parts of the country are not
making the energy-efficient choice for a variety of reasons. They are often not aware of the
amount of money they could potentially save on their energy bill by using todays energy-
efficient technologies and practices. They sometimes find it hard to locate the more efficient
products. Sometimes these products cost a little more and they do not know if they will get
their money back. Utilities and other organizations that run energy efficiency programs can
play a valuable role in helping consumers, businesses, and communities find energy efficient
solutions and significantly reduce their energy bills.
From those previous topics, it has been acknowledged that the motivation and ethics of
conservation of energy. Then the importance of energy in the process of economic growth
and human development has been understood. And at last the green technology and energy
efficiency show us the inbuilt process of conservation of energy. The next chapter shows
some literature reviews, policy reviews regarding ECE.
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Chapter 3
Important Concepts Regarding Energy Conservation
In the present world, there are many modern innovations introduced every year by the
scientists to foster energy efficient behavior among consumers as well as make the electrical
system itself more energy efficient. This chapter discusses about such technologies and the
policy and strategy of GOB to improve energy efficiency and conservation in short to
medium terms.
3.1 Energy Meter
Energy Meter (EM) is a new technology for reducing the energy consumption in developed
countries. Its duty is to measure the total amount of energy consumption in a household or a
business farm by single electronics. Electricity meters are typically calibrated in billing units,
the most common one being the kilowatt hour [KWh]. HHs now uses EM to monitor energy
consumption precisely of every electronic appliance in the house. Thus, it enables people to
manage and regulate their energy consumption in households. The reduction of energy
consumption will lead to energy conservation. Thus the high electricity consumption through
fossil fuels and other natural disastrous elements can be reduced drastically. As a result the
threat of global warming, which is all of our concern, will be reduced through energy
conservation. It has also the advantage of selecting peak, off-peak and shoulder time
frames which will help the consumers to fix their desired energy conservation schedule.
EM can be monitored both manually and automatically by the user. Manual use of EM can
be done by HHs residents. The automatic use of EM can be monitored through smart phone
applications for those residents who pass their maximum time outside of the house. Residents
can also set energy consumption for the home electric appliances in the EM as it provides
that kind of advantage of energy conservation. It will help to stop the specific appliance to
stop when the energy consumption level exceeds from the set up. Cost effectiveness of EM is
another concern for the consumers as it is a newly invented appliance.
In concern of this research paper, it is important to find out whether this device can play role
in improving energy conservation in Bangladesh. To understand the need of EM in
Bangladesh, at first we have to understand the present electricity billing and energy
15

consumption ration. In recent months, the electricity billing and cost of electricity has been
grown very quickly because of the change in electricity billing by Bangladesh Energy
Regulatory Commission (BERC). As a result, the cost of electricity has raised several folds.
However, the people are not happy because even after paying high bills, the load shedding is
still continuing. The HHs who has an air conditioner in the house and uses regularly have to
pay more than 5000 BDT as electricity bill. Those households represent the upper middle
class and higher income strata in Bangladesh. The question arises do they need the EM to
conserve energy? The cost benefit analysis comes to this point. Say a households electricity
bill is BDT 1000 and anothers is BDT 5000. Both of these two households will want to
install the EM in their home but is that cost effective. As example, the cost of the EM is BDT
7000. The usage of EM will reduce 10% of total energy consumption in a HH. For the first
HH it will be only BDT 100 and second HH it will be BDT 500. So it will take 70 months for
first house and only 14 months for the second house to get the return from the EM by using
the existing electronics with energy conservation. So it is more viable to use the EM in a high
energy consumer HH.
3.2 Renewable Energy (RE) in Bangladesh
Energy is one of the basic ingredients required to alleviate poverty and socio-economic
development. Bangladesh has an enormous prospective for renewable energy. The natural
obtain ability of alternative energy creates opportunities of growth in power sector. The
technologies should be developed to produce energy in an environment friendly manner.
Enough importance should be given to conserve the energy in most efficient form. The
energy prospect is generally assessed on the basis of available commercial sources of energy
as fossil fuel like gas, coal, oil and so on. Around the world, there is a major transition
underway in the energy sector. It is happening due to the following three major reasons:
I. A decline in fossil fuel availability, their predicted gradual extinction in the next few
decades and the resultant price volatility due to demand-supply gap.
II. The need to drastically cut global emissions for mitigating climate change (80%
reduction by 2050).
III. The need for energy security.
16

In Bangladesh efficient utilization of RE resources is yet to assume commercial dimensions.
The RE includes solar, wind, biomass, hydro, geo-thermal, tidal wave and so on. The
scenario of these RE sources in the present situation of Bangladesh is discussed below:
Solar Photovoltaic (PV): Solar photovoltaic (PV) systems are in use throughout the
country with over 200,000 HH-level installations having total capacity of about 12 Mega
Watt (MW) (BERC, 2008). Scaling-up of solar PV systems assisted by the development
partners are being implemented through the Rural Electrification Board (REB), Local
Government Engineering Department (LGED), Bangladesh Power Development Board
(BPDB) and other agencies implementing solar energy program. Renewable Energy
Research Centre (RERC) of the University of Dhaka has installed a model 1.1 Kilo Watt
(KW) grid connected photovoltaic system. There is a strong potential for solar energy
within the country. GOB is looking forward to initiate generation of 500 MW of solar PV
electricity in future.
Solar Thermal Power: The technology involves harnessing solar radiation for generation
of electricity through a number of steps finally generating mechanical energy to run a
generator. This technology needs to be concentrated in the country to supplement the
power supply.
Wind Energy: Wind Energy has also made some inroads but its potential is mainly
limited to coastal areas, and offshore islands with strong wind regimes. These coastal
settings offer good opportunities for wind-powered pumping and electricity generation.
Presently there are 2 MW of installed wind turbines at Feni and Kutubdia.
Biomass: Bangladesh has strong potential for biomass gasification based electricity.
More common biomass resources available in the country are rice husk, crop residue,
wood, jute stick, animal waste, municipal waste, sugarcane bagasse and so on. This
technology can be distributed on a larger scale for electricity generation.
Biogas: Biogas mainly from animal and municipal wastes may be one of the promising
renewable energy resources for Bangladesh. Presently there are tens of thousands of
households and village-level biogas plants in place throughout the country. It is a
potential source to harness basic biogas technology for cooking, and rural and semi-urban
electrification to provide electricity during periods of power shortfalls.
17

Hydro: Micro-hydro and mini-hydro have limited potential in Bangladesh, with the
exception of Chittagong and the Chittagong Hill tracks. Hydropower assessments have
identified some possible sites from 10 KW to 5 MW but no appreciable capacity has yet
been installed. There is one hydro power plant at Kaptai established in the 1960s with
installed capacity of 230 MW.
In the context of Bangladesh, there are limitations in every source of renewable energies and
its usage. Micro level installation or single household installation of solar PV cannot help to
generate electricity and rather it is very much costly in the primary installation. Rural and
village people of Bangladesh do not have enough money to have and maintain such
enormous piece of modern science. Every installation costs 20,000 BDT essentially and it is
very likely that the 20 years of the lifetime of this solar PV may not find benefit-able in the
people with the loan that the companies are providing. Mass solar PV installation like
Germany where solar PV is almost 22 Giga Watt (GW) (Clean Technica, 2012) and Saudi
Arabia planned to establish 41GW by 2032 (The Daily Star, 2012) is not possible in densely
populated country like Bangladesh. The solar thermal plant is hardly cost-effective in
Bangladesh though the process of installation has started. Wind and Hydro energy generation
in Bangladesh is possible but the existing situation does not support to think these sectors as
future energy solution to the problem. Lack of water in the rivers and risk of management in
the seashores are the problems for these energy sectors. The Biomass and Biogas are not
enough resources for generating electricity as the demand rises in the Bangladesh every day.
As only a few KW electricity is actually generated through RE in 2012, it is a serious
question in terms of sustainable development that how the GOB will meet up the estimated
demand about 2000MW in 2020.

3.3 National Renewable Energy Policy (NREP)
The GOB has adopted a NREP in 2008 to ensure the protection and generation of renewable
energy resources with a futuristic plan to solve the power crisis in Bangladesh. The policy
has shown the precise objectives and financial plans to generate electricity in the country
with a view to fulfill the Vision 2021 by the present government. In line with the Article 16
of The Constitution of the Peoples Republic of Bangladesh, it is stated that to remove the
18

disparity in the standards of living between the urban and rural areas through rural
electrification and development. There are many objectives in the NREP to achieve the
growth of the energy sector in Bangladesh. The objectives are:
Attach the potential of renewable energy resources and distribution of renewable
energy technologies in rural, semi-urban and urban areas;
Enable, encourage and facilitate both public and private sector investment in
renewable energy projects;
Develop sustainable energy supplies to substitute indigenous non-renewable
energy supplies;
Scale up contributions of renewable energy to electricity production;
Scale up contributions of renewable energy both to electricity and to heat energy;
Promote appropriate, efficient and environment friendly use of renewable energy;
Train; facilitate the use of renewable energy at every level of energy usage.
Create enabling environment and legal support to encourage the use of renewable
energy.
Promote development of local technology in the field of renewable energy.
Promote clean energy for Clean Development Mechanism (CDM); and
Policy sets targets for developing renewable energy resources to meet five percent
of the total power demand by 2015 and ten percent by 2020.
The NREP has not portrayed about t how these objectives will be achieved. Though there is a
financial plan in the policy, without adopting any concrete strategy there is no actual
implication of the financial plan. The third objective refers to substitute indigenous non-
renewable energy by developing sustainable energy, but how this transition will be managed
and financed and what will be the new use of the indigenous non-renewable energy, these
queries are not clear from the policy. In fourth objective, the scaling up of electricity
production through RE is declared, but how the investment would be made for mass
production of RE electricity through this process is not clarified. Similarly, in the fifth
objective, the heat energy definition and use is not explained. The policy also fails to
describe the process of training and facilitating the use of RE at household levels. The
regulatory structure and transfer of technology in the field of RE are also absent in the policy.
This implies NREP is not a well-defined policy, rather only an appeasing document to tell
19

people that government has a plan to address the problems in energy conservation and
sustainable development. It is striking that in the policy there is no single word about
energy conservation through energy-saving electronics. To move with the same speed like
the rest of the world, the GOB should introduce the ECEs to conserve electricity from
wastage.
The policy, however, has introduced an independent institution named Sustainable Energy
Development Agency (SEDA) which is providing coordination, promoting awareness,
supporting establishment, enabling and developing funds for RE sector in Bangladesh.
3.4 Power Tariff Rate
Electricity pricing or Power Tariff varies widely from country to country, and may vary
significantly within a particular country. There are many reasons that account for these
differences in price. The price of power generation depends largely on the type and market
price of the fuel used in power generation, economic situation, government subsidies,
government and industry regulation and so on. In Bangladesh, the power tariff is suggested
by the BERC to the Ministry of Power, Energy and Mineral Resources (MPEMR). If granted,
BERC fixes the PT for different types of users. In the last 1 year, from December 2011 to
December 2012, the Power Tariff Rate (PTR) has changed for four times and among them
three times in first four months (BPDB, 2012). The cause of these rises was the rise of cost of
the fuel prices.
Production of electricity is subject to use of fuel. Power generation through Quick Rental
Power Plant (QRPP) has been seen as one of the most crucial reasons for rise in the fuel
price. To minimize the load shedding rate and to generate more power to the economy, the
GOB has issued permit to 33 private and public invested QRPP to produce at least 1000MW
electricity. GOB has already mobilized Four Hundred Thousand Crore Taka to generate
5000MW of electricity from beginning of 2009 to the end of 2011 (The Blitz, 2012). The
GOB subsidized the QRPP to use as much as fuel at the least cost and government subsidized
their fuel cost to maintain the least power generation cost. But with the increase of fuel
guzzling QRPP, the import of fuel oil has increased dramatically. As a result, to maintain the
aggregate subsidy bill under control, on one hand the government increased both the price of
retail liters of diesel, patrol octane and furnace oil and on the other hand upped the retail PTR
20

in the country. As a result, the people of Bangladesh now is paying more for fuel, more for
electricity and thus the inflation rate in the economy has risen. The economy of Bangladesh
was badly hurt by the significant increase in electricity and fuel cost.
Table 3.1 Rise of Power Tariff from December 2011 to March 2012
Residential consumers
Consumption
(Board of Trade unit,
BOT)
Allowable retail current rate KWh-BDT
1st phase 2nd phase 3rd Phase
For use from
December 1, 2011
For use from
February 1, 2012
For use from
March 1, 2012
1st slab : 0- 100 2.73 2.87 3.05
2nd slab : 101- 400 3.81 4.04 4.29
3rd slab : > 400 6.88 7.43 7.89
Source: Bangladesh Power Development Board, 2012
Table 3.1 depicts the growth rate of PT in the stipulated time. There were three slab of power
consumption measuring for the residential users. This billing pattern is framed in such a way
that 15 percent rise in PTR caused 50 percent rise in the monthly billing of the residential
consumers (The Daily Star, 2012). It was the most controversial PTR in recent times. As the
people have vociferously expressed their dissatisfaction to such unjust PTR, the BERC broke
the 3 slabs into 6 slabs and thus the PT has changed too. The updated PTR was imposed from
1 September, 2012.
Table 3.2 Updated Power Tariff from 1 September, 2012
Residential consumers Consumption
(Board of Trade unit, BOT)
Allowable retail current rate KWh-
BDT
For use from September 1, 2012
1st slab: 0 - 75 3.33
2nd slab: 76 - 200 4.73
3rd slab: 201 - 300 4.83
4th slab: 301 - 400 4.93
5th slab: 401 - 600 7.98
6th slab: > 600 9.38
Source: Bangladesh Power Development Board, 2012
21

From the Table 3.2, the slabs are now divided into 6 parts though the PT has increased from
previous rate from 3.05 to 3.33 BDT in the lowest slab. This PTR is now in operation and has
been used in our calculation. The PTR plays an important role in the power sector to generate
governments income from selling electricity. If people use less power with the adoption of
ECE, they will give less money as tariff. But ECEs generally cost more than regular normal
electronics. But if it is found that ECE is also financially beneficial considering energy usage
bill, then it would help the government to make people understand about the use of ECEs
and its benefits. This would surely influence a lot of people to shift toward the ECEs in no
time.
3.5 Domestic Appliances
Domestic appliances are electrical goods which performs household functions, such as
cooking or cleaning. Major appliances comprise high energy consuming household
appliances including air conditioner, dishwasher, television, freezer, refrigerator, kitchen
stove, water heater, washing machine, microwave ovens and induction cookers. Minor
appliances are lights, fans, computers, CD and DVD players, camcorders, still cameras,
clocks, alarm clocks, video game consoles, home cinema, cell phones, telephones and
answering machines. But in Bangladesh, there is no division among the appliances. So the
domestic appliances in Bangladesh mean the light, fan, television, air conditioner, freezer,
refrigerator, water heater, microwave ovens and washing machine. In this research, the
domestic appliance and its influence in the electricity billing is analyzed. In 2009, Dhaka
Power Distribution Company (DPDC) has distributed 1.5 million Compact Fluorescent
Lights (CFLs) as a pilot project funded by World Bank (WB) and Garman aid agency GTZ
(The Daily Star, 2009). The WB was funded US$ 50 million and GTZ was gave 100,000 to
that project. The ECEs in domestic appliances have come in this scenario to see if there is
any place for improvement or saving options.


22

Chapter 4
Data Analysis and Findings
In this research, there are two parts of data collection and data analysis. First part contains the
data collected from the market to know about the ECEs and their price, lifetime and power
ratings. From this part the efficient electronics have been selected and calculation on the cost
benefit analysis of the lifetime use of those electronics is accomplished. Second part contains
the data collected from the Households with a structured questionnaire about the usage of
their electronics and unit consumption and billing for a year (October 2011 September
2012). However, major focus is given in the period from April to September the summer
season as well as peak power usage period.
4.1 Data Description of Power Consumption Survey of Electronics
The required information about the major domestic appliances has collected through market
research. Using this information, the electronic goods have been putted in three categories.
These three categories are called - Best Electronics, Medium Electronics and Worst
Electronics depending precisely on their power rating. To understand those electronics
identity, their company name has been collected. The electronics specification was kept
same for understanding their models and general information. As an example, when the data
of air condition has collected from different companies, the category remained same as 1
Ton. The price, power rating and company name of all the domestic appliances have been
collected. The category is also depended on the electricity savings of the appliances. If
appliances save electricity but not significantly then it falls in the Medium Zone and the most
electricity saving appliance is marked as the Best Zone. The non-energy saving electronics
are in the Worst Zone. Table 4.1 and 4.2 shows the data gathered from the market.





23

Table 4.1 Appliance with Power rating and Price
Appliances
Power rating (Watt) Appliances Price Range (BDT)
Best Medium Worst Best Medium Worst
Light 23 40 63 300 150 125
Fan 50 75 80 4000 2950 2750
Television 65 95 102 45900 45000 49000
Refrigerator 120 135 140 51900 51000 37500
Air Conditioner 260 600 1190 76000 67000 63000
Washing Machine 360 380 420 35900 28500 23500
Oven 800 950 1050 15500 12000 12900
Source: Authors Survey
From the Table 4.1, power rating vis-a-vis the price of electronic appliances can be seen. It
shows a definite trend the more energy efficient devices are more costly to purchase. In
Table 4.2, the identity of the Best, Medium and Worst products has shown.
Table 4.2 Appliances and Company Description
Appliances
Appliance Description
Best Medium Worst
Light Phillips CFL
Phillips Tube light
electric blast
Phillips Tube light
magnetic blast
Fan Havels BRB Lovely National
Television Singer 32" LCD Panasonic 32" LCD Sharp 32" LCD
Refrigerator Sharp 12 CFT Panasonic 12 CFT Singer 12 CFT
Air Conditioner
Panasonic 1 TON
Inverter Econavi
Panasonic 1 Ton
Econavi Panasonic 1 Ton
Washing Machine Whirlpool Sharp Singer
Oven Panasonic Panasonic Singer
Source: Authors Survey
4.2 Data Analysis of Power Consumption Survey of Electronics
By going through each of the appliances of the above two tables and using the information
given therein, a per day energy usage is calculated which is presented in Table 4.3. . The per
24

day average usage time is estimated from the HH survey. The daily energy usage is
converted into unit consumption.
Table 4.3 Appliances with per day usage converting into Unit (1KWh=1 Unit)
Appliances
Per day
Average
Usage
(in
hour)
Best
Electronics
Per Day
Electricity
Consumption
(in Unit)
Medium
Electronics Per
Day Electricity
Consumption (in
Unit)
Worst Electronics
Per Day
Electricity
Consumption (in
Unit)
Light 6 0.14 0.24 0.38
Fan 10 0.50 0.75 0.80
Television 3 0.20 0.29 0.31
Refrigerator 24 2.88 3.24 3.36
Air Conditioner 6 1.56 3.60 7.14
Washing Machine 1 0.36 0.38 0.42
Oven 0.25 0.20 0.24 0.26
Source: Authors Survey
From the Table 4.3, it is seen that if a best, a medium and a worst category light turned on for
6 hours in a day, the total electricity consumption will be .14, .24 and .38 unit respectively.
As for other appliances, the equation remains same (Power rating * usage hours)/ 1000. The
equation has to divide with 1000 because 1 KW = 1000 W. Thus for other appliances, the
unit consumption per day has calculated same to this equation.
Now the question rises that whether the best electronics are really cost effective than other
electronics? Answering this question requires estimation of lifetime cost of the electronics.
To understand a products lifetime cost (purchase plus energy cost in each year of service),
the current year is considered as base year and the following years is regarded as the total
lifetime. In this sense, the equation to measure cost effectiveness of any electronic goods
would be:
Total Bill = 1
st
year + 2
nd
year + 3
rd
year + 4
th
year + 5
th
year + 6
th
year + 7th year + 8
th
year +
9
th
year + 10th year.
Where, 1
st
year Bill = (365* unit per day* cost per unit),
2
nd
year Bill = (365* unit per day* cost per unit)/ (1+r)
1
,
3
rd
year Bill = (365* unit per day* cost per unit)/ (1+r)
2
,
25

...


n-th year Bill = (365* unit per day* cost per unit)/ (1+r)
n-1
,
r = non-food inflation rate;
n = number of year in lifetime.
As it was mentioned in chapter three that the present PTR has started from 3.33 BDT, so the
Total Bill after the lifetime is measured using the equation. In the air conditions range, the
cost per unit is measured with 4.93 BDT because the power consumption is always more than
300 units.
Table 4.4 Total Bill of Best, Medium and Worst electronics after Lifetime usage
Appliances
Life
Time (in
Years, n)
Non Food
inflation
rate ( r )
Best
Electronics
Total Bill
(BDT)
Medium
Electronics
Total Bill
(BDT)
Worst
Electronics
Total Bill
(BDT)
Light 3
0.1128
453.91 1243.33 1249.90
Fan 10 3936.42 5904.63 6298.27
Television 5 967.96 1414.71 1538.80
Refrigerator 10 22673.76 25507.98 26452.72
Air Conditioner 8 15916.13 36729.53 72846.91
Washing Machine 6 2043.42 2156.94 2383.99
Oven 5 992.78 1191.33 1313.86
Source: Authors Survey
As it was mentioned in chapter three that the present PTR has started from 3.33 BDT, so the
Total Bill after the lifetime is measured using the equation. In the air conditions range, the
cost per unit is measured with 4.93 BDT because the power consumption is always more than
300 units.
Now the total cost effectiveness of each electronic goods is to be measured by summing up
the purchase price and life-time electricity consumption cost. This number is then needs to be
compared over the three categories - Best, Medium and Worst electronics. If the Total cost of
any model is less than other model, then in terms of rational choice, the lowest total cost
model would be the logical choice from the consumers point of view. So the Total Cost of
26

each electronic has been calculated and compared with other such appliances in each of the
appliance type.
Table 4.5 Total Cost of Appliances after lifetime usage
Appliances
Total Cost (after lifetime) (BDT)
Best
Electronics
Medium
Electronics Worst Electronics
Light 754 1393 1375
Fan 7936 8855 9048
Television 46868 74508 50539
Refrigerator 74574 76508 63953
Air Conditioner 91916 103730 135847
Washing Machine 37943 30657 25884
Oven 16493 13191 14214
Source: Authors Survey
The total cost of the appliances calculation shows that most of the Best electronics are cost
effective, other than Refrigerator, Washing Machine and Oven. The Worst range refrigerator
is not significantly behind in terms of energy consumption in compared to the Best one.
However, the price of the Worst refrigerator is almost 15000 BDT less than the Best option.
This price range makes the key difference. The similar trend is manifested in the Washing
Machine sector. The price of the Worst product is almost 13000 BDT less than the Best one.
In the Oven range, the Medium appliance is more effective than the Best appliance because
of the price range is pretty low. The usage time of the appliance is also needed to be kept in
mind. Washing Machine and Oven are running very less times and the Refrigerator is
running is 24 hours in every day. So the cost effectiveness is also depended on the usage of
these appliances.
But when a consumer is going to the market to buy an appliance, that person usually does not
care about the power rating. Rather s/he cares the lifetime and the price of the appliances. So
the consumers are not aware of the power rating and how they can save their money in the
long term rather spending much money in the initial stage.

27

Table 4.6 Initial savings and Lifetime loss between Best and Worst appliances
Appliances
Initial Savings (BDT) Lifetime loss (BDT)
Price - Best Price Total cost - Best Total cost
Light -175 621
Fan -1250 1112
Television 3100 3671
Refrigerator -14400 -10621
Air Conditioner -13000 43931
Washing Machine -12400 -12059
Oven -2600 -2279
Source: Authors Survey
From Table 4.6, it is clear that how the people are saving their money initially without
thinking about the future savings. The Best appliances are obviously cost more than Worst
appliances. Therefore, the price of these appliances varies between different price ranges. As
shown in Table 4.1, the difference in prices among the appliances is clear. Initial saving of
light is 175 BDT, fan is 1250 BDT, television is 3100 BDT, refrigerator is 14400 BDT, air
conditioner is 13000 BDT, washing machine is 12400 BDT and oven is 2600 BDT. But after
the lifetime use of the Best appliances, they save money almost 50 percent from the initial
prices. As for light, the initial saving is 175 BDT, but total cost after the lifetime of 3 years of
usage, the consumer will save 621 BDT by using the Best appliance. The significant change
will happen in the air conditioner sector. The initial saving is 13000 BDT, but after the
lifetime use the consumer can save 43931 BDT. As the data collection from the HHs are
taken to estimate the daily average usage of air conditioner, for a business user of air
conditioner the saving would be much more assuming the general understanding that they
use air conditioner for far more longer periods.
4.3 Data Description of Power Consumption Survey of Households
In this part, electricity consumption data is collected from 30 HHs. The HHs had been
selected randomly but using a pre-requisite information - surveyed HHs must have air
condition in the house. As air conditions consume more electricity, it is one of the key factors
28

in addressing the increase in electricity bill currently faced by the HHs. After the recent rise
in the PTR, the electricity bills in those HHs have jumped from around 2000 BDT to more
than 5000 BDT. In the previous section, it is found that adoption of ECE would significantly
reduce the rise of electricity bill.
In this section, the real world scenario has been analyzed using the HH electricity bill from
April to September 2012 and the information found from the previous section. The survey
has collected HHs electricity bill from October 2011 to September 2012. However, the focus
is given to the April to September 2012 period when the electricity consumption rises and
thereby creating load to the power generation and causing more load shedding.
Table 4.7 HHs Electricity Consumption and Average Bill (AprilSeptember, 2012)
Household
ID (HH)
Average Consumption of Electricity per
Unit (From April - September 2012)
Average Billing per month in BDT
1 917.0 7849.67
2 703.0 5754.67
3 1192.0 10115.17
4 705.0 9055.00
5 817.0 4981.00
6 824.5 6745.67
7 433.0 3164.83
8 340.0 1670.83
9 422.5 2883.17
10 453.0 3874.17
11 367.0 2010.00
12 389.0 2538.83
13 495.0 4190.50
14 2815.5 23696.00
15 275.8 1304.17
16 1471.7 11259.50
17 419.8 3102.83
18 660.0 4726.00
19 1023.0 7741.00
20 1004.0 8073.50
21 282.8 1352.83
22 352.0 2422.33
23 547.7 4597.67
29

24 284.0 1523.67
25 554.7 4469.33
26 819.0 7072.17
27 615.7 4798.67
28 1730.7 8055.00
29 528.0 4094.00
30 1071.0 8270.83
Source: Bangladesh Power Development Board, 2012
From the Table 4.7, it is understandable that how much money each HH is paying per month
on average. In the questionnaire, details about domestic appliances have also been collected
to understand the consumption behavior of the HHs. In the questionnaire, there are options
for both major and minor domestic appliances.
4.4 Data Analysis of Power Consumption Survey of Households
This research has covered part of minor and part of major appliances. They are - lights, fans,
televisions, air conditions, refrigerators, washing machines and ovens. Each HH has reported
no. of such electronic goods that they use. These numbers are then calculated for each of the
Best, Medium and Worst categories of the appliance based on the findings of previous
section. As an example, one of the surveyed HH has 18 lights, 10 fans, 3 air conditioners, 2
televisions, 3 refrigerators, 1 washing machine and 1 oven. All these numbers are calculated
with the help of Table 4.3 and after summing up; the total unit consumptions per month have
been estimated. This calculation has done for all the HHs with the Best, Medium and Worst
options.
Table 4.8 HHs calculated with Best, Medium and Worst appliance options
Household
ID
Best Electronics Usage
of Unit per Month
Medium Electronics
Usage of Unit per
Month
Worst Electronics Usage
of Unit per Month
1 654.00 1006.20 1429.20
2 370.80 644.10 1018.50
3 476.40 767.10 1154.70
4 428.40 729.30 1124.70
5 249.60 380.10 531.90
6 564.60 912.00 1368.90
7 323.40 536.70 812.40
8 340.20 488.40 644.10
30

9 477.60 702.30 972.00
10 577.20 939.00 1404.60
11 376.20 553.20 750.30
12 378.00 544.50 723.00
13 497.40 779.10 1116.30
14 516.00 831.00 1230.00
15 380.40 559.80 736.50
16 811.80 1300.50 1912.50
17 461.40 744.60 1130.70
18 538.20 876.90 1268.70
19 713.40 1185.90 1793.10
20 595.20 1037.40 2038.50
21 314.40 441.90 583.80
22 876.00 978.30 1465.80
23 366.60 605.10 911.70
24 469.80 690.60 912.30
25 435.60 667.80 949.80
26 958.20 1558.50 2375.70
27 556.80 898.50 1339.50
28 364.20 597.90 896.70
29 486.60 752.70 1054.80
30 646.80 1187.70 1962.30
Source: Authors Survey
From the Table 4.8, it is obvious that the Best appliances are consuming less electricity than
other appliances with the same number of appliances in the HHs. But the main focus is how
the Best appliances can affect the average electricity consumption in the HHs. If the Best
consumption is substituted from the average consumption, then a clear picture can be found.
Table 4.9 Average expenditure of the HHs regarding Best appliances
Household ID
A= Average consumption Best
consumption
A% of Average
Expenditure
1 263.00 28.68
2 332.20 47.25
3 715.60 60.03
4 276.60 39.23
5 567.40 69.45
6 259.90 31.52
7 109.60 25.31
8 -0.20 -0.06
9 -55.10 -13.04
31

10 -124.20 -27.42
11 -9.20 -2.51
12 11.00 2.83
13 -2.40 -0.48
14 2299.50 81.67
15 -104.60 -37.93
16 659.90 44.84
17 -41.60 -9.91
18 121.80 18.45
19 309.60 30.26
20 408.80 40.72
21 -31.60 -11.17
22 -524.00 -148.86
23 181.10 33.07
24 -185.80 -65.42
25 119.10 21.47
26 -139.20 -17.00
27 58.90 9.57
28 1366.50 78.96
29 41.40 7.84
30 424.20 39.61
Source: Authors Survey
From the Table 4.9, it is clear that most HHs can enjoy the benefits of using Best appliances
where they can save both money and energy. However, there are few exceptions in the Table
4.9. HH ID 10, 15, 22, 24 and 26 came up with contrasting results. The results are different
because in those HHs the average daily use time of appliances is much lower than the
average. This situation has been created because the HHs prudent uses of high power
consuming electronics in fear of high electricity consumption and thereby large monthly
electricity bills. But if they have the Best appliances, they would able to use these appliances
more frequently without the fear of electric bill reprisal.
This implies consumers were not aware of the ECE and their implication on future electricity
billing when they purchased those appliances. It should be acknowledged that sellers also
have a role in explaining the benefits of ECE to consumers. This reveals that there exists a
clear gap in the understanding of the implications of ECE between the consumers and sellers.
However, it is the primary responsibility of the sellers to present the financial benefits of
32

ECE to consumers, give related information about their products and always reminding the
long-term consequences. If the information about conservation of electricity and saving of
money goes clearly to the consumers, they will think before buying any appliances. The next
chapter has discussed some recommendations in this regard.


33

Chapter 5
Recommendation and Conclusion
The low level of energy use and the ongoing above average economic growth implies that
household electricity demand will rise by several folds as more HHs will buy increasing
number of appliances as their income rises. It has been mentioned that at current trend the
demand of energy is projected to rise to 20GW in the year 2020. This tests GOBs capability
to materialize the generation of such large amount of electricity and thereby ensure energy
security for future generations. From the Chapter four, it is now clear that ECE can play an
important role to influence the demand equation through conservation of electricity. For
Bangladesh, the traditional fossil fuel based power generation and RE sector are both costly.
The current experience shows that slight irresponsible decision in the energy sector can
create various unhealthy changes in the life of general people. It not only confines to monthly
electricity bill but also spreads to the inflation.
For these reasons, the GOB should find out some way to encourage the people to use ECE
instead of regular or non--saving electronics. In this sense it is very much important for the
GOB to understand how the other countries around the world are promoting such practices
and gaining in the challenge of conservation. Other than financial benefits, low electricity
consumption has several linkage benefits - cleaner air and a healthier environment, and also
assisting to protect the climate by reducing Green House Gases (GHGs).
5.1 Energy Conservation Scenario around the World
Energy Conservation is now one the most important issues around the world but mostly in
the developed countries. United States of America (USA), Canada, European Union (EU),
Japan, Australia are the regions and countries who are focusing on energy conservation so
that the future can be more livable with less environmental impact from the power
generation. It is easy to understand that countries having positive population growth rate will
need more future energy for consumption. However, a large number of developed countries
and regions are now facing population decline or only a meager growth rate in population.
The population growth rate in USA is 0.96, in Canada 0.79, in Japan -0.28, Australia 1.15
and in the EU countries; most of their population growth rate is under 1 percent (CIA World
34

Fact Book, 2011). These countries have already adopted various policies to conserve energy
and set specific targets for 2020. They are all trying to consume less fossil fuel based energy
in 2020 than they consumed in 1990.
For example - EU is aiming to cut its current carbon emission by 20 percent and use energy
mix about 20 percent by 2020. The energy mix means the mixture of RE with traditional
resources. The EU and its energy commission are now giving emphasize on new
technologies to improve the consumer behavior and ECE (EU, 2011). EU had a plan in 2006
called Energy Efficiency Action Plan (EEAP) which is now upgraded to 2020 plan. The EU
commission of Energy has proposed several measures to increase efficiency at all stages of
the energy chain: generation, transformation, distribution and final consumption (EU, 2011).
The measures focus on the public transport and building sectors, where the potential for
savings is greatest. Other measures include the introduction of smart meters and clearer
product labeling (EU, 2011).
In Japan, they plan to use mix energy up to 30 percent by 2020. However, Tokyo's
universities are canvassing that the country still has room for energy savings. The University
of Tokyo, for example, has cut peak power usage by 3040% by turning off lights and air-
conditioning, shutting down extra lifts and running energy-intensive experiments at night
(The Nature, 2011). Japan also has a very precise act on energy saving which was enacted
from 1979 and last revised on 2008. Ministry of Economy, Trade and Industry, Japan was
also gave a policy in 2010 where it was stated that how the low energy intensive economic
growth can be achieved.
In USA, the government has introduced many new ideas for conserving energy. In 2008,
Americans saved more than $19 billion and avoided greenhouse gas emissions equivalent to
those of 29 million cars through choices they made with energy-saving measures and energy-
efficient homes (EPA, 2011). Homeowners can save energy while improving their home's
comfort level by adopting energy-efficient building practices. Substantial savings are
possible whether building a new home, renovating an existing one, or simply updating some
features to improve the home's efficiency. At the same time, homeowners can use green
power for their home to reduce further their consumption of energy from fossil fuels and
lower their carbon footprint. The USA has recently approved some tax credits for the
35

purchase of energy efficient homes and products. For the most part, these products are air
conditioning and heating units and solar energy products. The tax credits for appliances are
available for the manufacturers of washing machines, dryers, and refrigerators. The
government sponsored Energy Star program is already working to save peoples money on
energy costs and to understand a stake in the environmental concerns too. There are also tax
benefits and incentives for them who will buy the energy efficient electronics and goods.
New technologies are always welcomed in USA. Now a new concept of energy efficient
home is also gaining popularity in USA. The technologys concept is very clear; use as much
natural light as possible. Even in USA, there are now new concepts and researches for more
efficient housing and more efficient use of energy in domestic level.
The private business sector in USA has in recent times become aggressive in energy
conservation as it improves their profitability. For example - International Business Machines
(IBM) had saved US$ 43 million just in electricity expanses in 2011 (Clean Technica, 2012).
The government of Australia and Canada are also concerned of the energy conservation and
they also have enacted various benefits for consumers to promote ECE either in new
purchase or in a replacement purchase.
This research has only covered the domestic appliances and therefore the finding is valid for
HH electricity consumption and conservation. However, the other sectors of the economy
also uses many of these appliances which implies that if ECE could be incorporated in all
sectors, there would be more opportunity for cutback in energy demand. From the previous
discussion, it is now clearly understood that having a negative growth in population made the
job of energy conservation easy for the developed countries. For Bangladesh, the population
growth is now 1.78 percent (CIA World Fact Book, 2011). So it is very crucial for the people
of Bangladesh to understand the importance of conserving energy. The GOB also has to
understand the other geo-political motivations of the developed countries governments in this
regard. As most of the fossil fuels are imported in Bangladesh, more usage means more
spending of foreign currency. Therefore, the country must give needed importance to this
issue urgently.
36

5.2 Conclusion
With average GDP growth above 6 percent, each sector of the Bangladesh economy -
industrial, commercial and housing sectors - is significantly growing. These sectors demands
increasing energy consumption to continue their growth rate.
In this research, 30 HHs have been studied to understand whether and how much energy
conservation opportunity exists in Bangladesh at household level. The research shows that
there are very good chance of conserving electricity in the domestic or residential sector. It
can also be said that the finding implies similar energy conservation opportunities in the
industrial and commercial sectors. The research also shows that currently the HHs is using
the high electricity consumption electronics and awareness about the life-time financial
benefits of ECE are not present amongst consumers. .
Bangladesh has set some noteworthy examples in the HH solar PV sector for the users who
are not connected with electricity grid. However, PV is not economically beneficial in the
cities. As major part of population now live in cities and urban migration is a still a large
trend, PV cannot be a medium term solution for energy conservation. This research has
reviewed some advance strategies to conserve energy which are now being implemented by
the developed countries. If GOB can afford more projects like CFL light project in 2009 to
promote ECEs, Bangladeshs endeavor for energy conservation can be achieved in a
relatively short period. Thus the development of Bangladesh will become sustainable and a
secure energy future can be ensured.
37

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41

Appendix

Questionnaire for Household Survey
Respondent Serial No:

1. How many lights are in your house? .
2. How many fans are in your house? .
3. How many Air Conditioners are in your house? .
4. How many Televisions are in your House? .
5. How many refrigerators in your house? ..
6. How many washing machines in your house? .
7. Other appliances: Name .......................... No. ...............
Name .......................... No. ...............
Name .......................... No. ...
Name .......................... No. ...............
8. Total electricity consumption and bill (last 12 months)
October ................ Unit .................... Total bill .......................
November ................ Unit .................... Total bill .......................
December ................ Unit .................... Total bill .......................
January ................ Unit .................... Total bill .......................
February ................ Unit .................... Total bill .......................
March ................ Unit .................... Total bill .......................
April ................ Unit .................... Total bill .......................
May ................ Unit .................... Total bill .......................
June ................ Unit .................... Total bill .......................
July ................ Unit .................... Total bill .......................
August ................ Unit ..................... Total bill .......................
September ................. Unit ..................... Total bill .......................
42

Check List for collecting Electronic Appliances Data (From sellers)
1. Brand Name:
.
2: Appliance Name:
.
3: Power Rating:
.
4: Price:
.