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Huawei partners with BGMEA on renewable energy

  • Special Correspondent
  • 31 October, 2022 12:00 AM
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Huawei partners with BGMEA on renewable energy
BGMEA President Faruque Hassan and Huawei Technologies (Bangladesh) CEO Pan Junfeng exchange documents after signing an MoU at BGMEA Complex in the capital on Sunday.

The leading global ICT infrastructure provider Huawei has signed a Memorandum of Understanding (MoU) with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) with a view to taking steps to adopt green energy in the garments sector.

Faruque Hassan, President of BGMEA, and Pan Junfeng, CEO of Huawei Technologies (Bangladesh) Limited, signed the MoU on behalf of their respective entities at BGMEA Complex in Dhaka on Sunday. Other high officials from Huawei and BGMEA were also present at the event.  

Under this agreement, Huawei and BGMEA will work together to support the garment factories to become green or environment friendly.

Huawei will be setting up solar power plants at the BGMEA enlisted factories following two modules – Opex and Capex. In the Opex module, factory owners will be able to enjoy less tariff rate than grid electricity. Under the Capex module (1), Factory owners will make a long-term payment agreement with the investors. After payment is completed, the solar panel system will belong to the factory owner.

There will also be another arrangement (Capex module 2), where factory owners will invest by themselves to set up rooftop solar systems and can save electricity consumption by using solar energy.

In both cases, BGMEA will regulate the processes and bridge the communication between Huawei and factories.

Meanwhile, the scope of this memorandum will also allow Huawei and BGMEA to build more than 2GW of solar rooftop system in garments industries, which will altogether generate probably 2600 GWh of clean electricity per year, minimising the pressure on grid electricity and helping the country to deal with ongoing energy crisis.

The system will also help factories to avoid 1.40 million tons of CO2 per year, which amounts to planting around 2.14 million trees.

Such initiative is expected to help the industry to reduce its dependence on fossil fuel to a great extent and at the same time, the factories can save money by enjoying electricity tariff at a cheaper rate.

BGMEA President Faruque Hassan said, “Energy efficiency, renewable energy and carbon footprint reduction have been one of the core areas of concern for BGMEA to facilitate sustainable growth and maintain competitiveness of the industry in the long run.”

“Therefore, investments in renewable energy and energy efficient technologies have become imperative throughout the industry.”

He said, “SMEs represent a significant part of the industry, but due to the lack of finance, they are often hesitant to invest in sustainability or renewable energy.”

“However, given the current trajectory of sustainability throughout the globe, a RMG exporter has no other way but to reduce their carbon footprint of the production. In such cases, the OPEX model could be an ideal trade for them where, unlike the CAPEX model, the factories can reduce the carbon footprint of their products through green and renewable energy generation by using their empty rooftops.”

Pan Junfeng, CEO of Huawei Technologies (Bangladesh) Limited, said, “Currently the RMG sector of Bangladesh is going through a scarcity of proper power supply, resulting in the companies incurring cost hikes.”

“As a solution, Huawei will work with BGMEA to fulfill the necessity of more power supply through green solutions (solar power). Eventually, this will help reduce excess power supply pressure on the national grid and the factories can move toward becoming green factories.” 

BGMEA Vice President Shahidullah Azim, Directors Haroon Ar Rashid and Neela Hosna Ara, Chair of BGMEA Standing Committee on Press, Publication and Publicity Shovon Islam, Chair of BGMEA Standing Committee on UD-Woven and Knit Md. Nurul Islam and members of BGMEA were also present at the MoU signing ceremony.