, April 11 — One of the most significant pleasures and achievements in my life has been playing a part in the growth of Bangladesh’s infrastructure—especially at a critical juncture when the nation desperately required advanced port facilities. Our efforts led to the establishment of the first inland container depot, along with essential port-related structures and oil storage terminals. This marked the beginning of our journey.
My entry into Bangladesh’s energy sector coincided with a pivotal moment in the country’s progress. The primary challenge back then was the severe shortage of power. During 1995-96, merely about 20% of the populace had access to electricity. Those times remain etched in my memory; I feel deeply honored and joyful knowing we initiated power generation during that period. Now, every person in Bangladesh enjoys access to electricity. It fills me with immense pride to have contributed to such an enormous change—Summit being one key component thereof—is truly what brings me the utmost fulfillment.
Issues Confronting Bangladesh’s Power Industry
Even with significant advancements in electrical accessibility, Bangladesh continues to grapple with substantial energy-related obstacles. I've pinpointed various key problems that might hinder the nation’s ongoing economic expansion unless they are tackled efficiently.
The foremost issue is the escalating requirement for electricity fueled by technological progress. I am convinced that heightened electricity usage—prompted by the expansion of artificial intelligence, cloud computing, and similar technologies—might rapidly surpass production capabilities. This situation is currently emerging in regions like the United States and Europe, which have initiated extensive AI implementations.
This observation mirrors global trends. In the U.S. alone, projections suggest that by 2030, data centres could consume up to 9% of the country's total electricity output-double the current level.
Several elements are fueling higher electricity consumption in Bangladesh: an expanding populace with escalating domestic power requirements; a rise in internet usage necessitating more data centers; greater incorporation of home electronic devices; and the heightened utilization of battery-operated vehicles like electric rickshaws.
The second significant hurdle is Bangladesh’s restricted ability to develop renewable energy sources domestically, primarily because of the scarcity of available land in this heavily populated nation.
The Renewable Energy Imperative
To attain sustainable progress, Bangladesh needs to shift towards renewable energy—a move fraught with obstacles. While expanding its range of energy supplies, the nation has to navigate geographical constraints that hinder local renewable initiatives.
Despite having only 55,000 square miles of territory, Bangladesh lacks the space to produce enough green power domestically. Nevertheless, neighboring countries—especially India, Bhutan, and Nepal—boast significant untapped resources. For example, Nepal possesses plentiful renewable hydroelectricity. To address this, we should leverage these cross-border assets and bring clean energy into Bangladesh from outside its boundaries.
This international approach signifies the best way ahead, as outlined by the Summit Group. We've been vigorously seeking out local renewable collaborations, which encompass intentions to bring in up to 1,000 megawatts of clean energy from India.
Ayesha Khan, who serves as both the Managing Director and CEO of Summit Power International, elaborates: “The key factor is economics. Once renewable sources become cheaper compared to those based on fossil fuels, individuals and businesses will naturally shift towards using more renewables. Given how costs for renewable technologies are trending downward, this transition seems inevitable.” She also correctly points out that Bangladesh’s economy remains highly sensitive to prices, making costly energy alternatives unfeasible.
The susceptibility of Bangladesh to climate change amplifies the critical nature of shifting towards renewables. This is already apparent from current impacts: annually, within its 55,000 square miles area, the country produces 45 million tons of rice, with floodwaters caused by climate change submerging as much as half of that yield.
Financial Innovation and Global Partnerships
Tackling these energy issues necessitates both technological innovations and financial ingenuity. The choice made by Summit Group to establish itself in Singapore back in 2016 highlights the type of financial strategies needed to backing substantial energy infrastructure initiatives.
We relocated to Singapore primarily because of better financial incentives available there. Although Bangladesh has significant prospects for expansion, it currently suffers from inadequate governance structures and an underdeveloped financial sector—elements essential for carrying out extensive infrastructural developments, aligning perfectly with our objectives for Bangladesh.
Singapore’s incorporation has allowed Summit to obtain financing at favorable terms, consequently aiding in lowering electricity expenses for Bangladesh residents. Additionally, this move drew significant international collaborators such as Japan's JERA Co., which invested $330 million acquiring a 22% share in Summit Power International back in 2019.
Summit's dual identity-as a Bangladeshi company with deep local understanding and an internationally structured entity with access to global capital markets-offers a model for other energy firms in developing economies.
Education as Infrastructure
For me, infrastructure development extends further than just the physical aspect; it also includes advancements in society—especially education, which I see as crucial for fostering equality and opportunities.
Genuine equality is achieved through education. It stands as the planet’s most powerful leveler. Facilitating these chances ranks among my highest achievements.
In line with its commitment to corporate social responsibility, the Summit Group has set up schools in areas close to its power facilities, aiding the education of around 8,000 disadvantaged children.
This emphasis on education embodies my wider belief in corporate accountability. Accumulating wealth ought not to be merely about individual profit or enjoyment; it should also contribute to human progress.
Summit Group's Solutions
The Summit Group has suggested and put into practice various solutions aimed at addressing Bangladesh’s energy requirements. We remain committed to embracing advanced technology, such as GE's highly efficient combined-cycle natural gas turbines, and we are setting our sights on transitioning towards the use of hydrogen fuel in the future.
Our strategy embodies a thoughtful equilibrium between practicality and ambition—addressing immediate requirements while striving for enduring viability. As Bangladesh navigates a intricate shift in its energy landscape, the Summit Group stands ready to assume a crucial position.
The author founded and currently chairs the Summit Group.
Disclaimer: The perspectives and ideas presented belong solely to the author and may not align with the official stance or policies of UNB.
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