Amid growing concerns about power supply issues in Bangladesh, executives from infrastructure developer Summit Group are highlighting critical challenges facing the country’s energy sector and outlining potential solutions. As Bangladesh’s largest independent power producer, Summit Group’s perspective offers insights into the nation’s power landscape and upcoming challenges during Ramadan, which runs from Feb. 28 through March 29.
Power Challenges During Ramadan
The Business Standard reported that Bangladesh could face significant power supply concerns during the Ramadan. Power issues are expected to affect both industrial and residential consumers.
The ceramics industry in Bangladesh has already experienced disruptions due to power supply issues, and the government has faced power outages due to unpaid utility bills, complicating the overall supply situation.
Meanwhile, Summit Group recently raised concerns about Petrobangla’s decision to terminate the country’s third floating storage and regasification unit project, which could further impact energy security. Power outages are particularly concerning as Bangladesh approaches peak irrigation season, when reliable electricity becomes even more critical for agriculture.
Summit’s Role in Bangladesh’s Power Sector
Summit Group, through its subsidiary Summit Power Limited, has established itself as Bangladesh’s largest independent power producer. The company operates 18 power plants with a combined generation capacity of 2,255 megawatts, representing approximately 17% of the country’s total private installed capacity.
A key element of Summit’s business strategy involves its incorporation in Singapore, which company leaders say enables it to provide more competitive electricity rates in Bangladesh.
“One of the most important things that define us is the fact that we are a Singapore company based out of Singapore, owning assets in Bangladesh,” explains Ayesha Khan, SPI’s managing director and CEO. This structure was developed with the International Finance Corporation in 2016.
She elaborates on the rationale: “One of the reasons that we did this structure — and IFC helped us to do this structure — is really to help us access the governance of Singapore, the laws of Singapore, and the financial markets of Singapore. What Bangladesh has is a lot of opportunities and a lot of growth. But what it lacks is governance, and what it lacks is a mature financial market.”
This Singapore incorporation has practical financial benefits that directly affect electricity costs in Bangladesh. Wu Yan Bin, SPI’s chief financial officer, explains: “This means that a lot of the financiers are able to take comfort that there is certainty in terms of the cash flow through this pre-agreed tariff structure that is also indexed to USD. And that is why we have been able to unlock long-term cost competitive USD financing from the international financiers.”
Technology and Solutions
Summit Group has emphasized technological innovation in addressing power challenges. The company is focused on bringing advanced power generation technology to Bangladesh.
“At every point in time, we have provided Bangladesh with the latest technology, we have never executed or implemented or developed a power project in Bangladesh using older technologies for that point in time,” says Ayesha Khan.
“Our latest power plant, the 590 megawatt Meghnaghat II Combined Cycle Gas Turbine plant, features a GE 9HA.01 gas turbine that is known for its efficiency and the plant is one of the most cost competitive IPPs in the country,” says Yan Bin.
Looking toward renewable solutions, Summit is exploring cross-border electricity options, says the company’s founder and chairman, Muhammed Aziz Khan.
“High-cost solar done at a very small scale is not the solution for Bangladesh. What Bangladesh needs is to be able to import very low-cost renewable electricity from its regional neighbors,” he says.
Future Outlook and Proposed Solutions
Summit Group executives outline a vision for Bangladesh’s power sector that emphasizes technological advancement, regional collaboration, and sustainable development.
“We are especially looking at cross border solutions to bring renewable sustainable electricity solutions for the region, because if you look at the map, Bangladesh and this region is surrounded by renewable sources in places like Bhutan, in places like the deserts of north India and places like Nepal,” says Ayesha Khan.
This regional approach stems from Bangladesh’s regional barriers. “Bangladesh, because of its geographical limitations, does not have abundant renewable resources ,” says Yan Bin. “It needs to work with its renewable resource-rich countries, such as India, Nepal and Bhutan to come up with cost-effective green electricity solutions.”
The company’s leadership team also anticipates growing energy demands driven by technological advancement. “I personally believe that as artificial intelligence and cloud computing and other technologies develop, they will require so much more electricity that we could see a shortage, as we are seeing in places like the U.S. and Europe where they’re building artificial intelligence capacities,” says Aziz Khan.
Corporate Social Responsibility
Amid these challenges, remains Summit Group has committed to its corporate social responsibility, with a particular focus on education initiatives that benefit communities in Bangladesh.
“Education is the biggest enabler of equality in the world. And therefore, we focus on how to educate the people around the power plants or around any of our facilities,” says Aziz Khan. “I am very pleased to say that we are teaching about 8,000 children in Bangladesh, disadvantaged children who would not otherwise be able to go to school.”
Ayesha Khan connects social responsibility directly to Summit’s core business of providing affordable energy solutions: “I think the biggest corporate social responsibility we have is to provide low-cost energy infrastructure to the people of this region, especially to the people of Bangladesh. That is our biggest responsibility.”
Summit Group’s leadership team presents a clear message: the country faces significant power challenges that require immediate attention and long-term planning. From addressing contract disputes and payment delays to exploring regional renewable energy options, the company is ultimately focused on improving Bangladesh’s energy security.
