Summit Group Supports Sustainability Efforts in Bangladesh

META: Summit Group founder Muhammed Aziz Khan says the company continues to pursue projects that will result in more use of electricity in Bangladesh from renewable sources.

Bangladesh stands at the forefront of countries grappling with the multifaceted challenges posed by climate change. Known for its low topography and dense population, the nation is committed to using renewable energy as a way to contribute to global sustainability efforts. Summit Power International (SPI), the largest independent power producer in Bangladesh, has fully committed to the use of renewable energy sources and investing in green energy.

SPI, majority owned by the Summit Group conglomerate founded by Bangladesh native Muhammed Aziz Khan, has made finding renewable solutions for Bangladesh a part of the company’s strategic plans. Although the South Asian country isn’t a high emitter of carbon dioxide and other greenhouse gases, it has faced an increasing number of climate-related natural disasters, including devastating floods.

“Sustainability is a global process. It's not specific to Bangladesh,” Muhammed Aziz Khan says. “We need to be sure that in the global north or global west, where the highest amount of emissions are coming, that the people there elect governments and leaders with the first manifesto being that they will be sustainable. The people of the world must wake up to the fact that they are at risk.”

“Most often, we have seen that the United States and Europe have taken the lead in changing the world, and this change must also come from there.”

However, Khan adds that Bangladesh needs to contribute to global climate goals. He voiced hope for a future where “each and every aspect of Mother Earth, from its soil to its environment, improves.”

Summit Group Focused on Importing Green Energy, Investments in Renewables

Summit Group built Bangladesh’s first independent power plant in 1997. According to Khan, at the time, only 20% of the country had access to electricity; now, that number is 100%. Today, SPI operates 17% of the country’s total private installed electricity capacity and 7% of total installed capacity. The company has 18 power plants. SPI also operates Bangladesh’s second floating storage and regasification unit and liquefied natural gas import terminal with a capacity of 500 million cubic feet per day.

Khan notes that Summit’s first power projects were oil-based, but the company subsequently has moved into natural gas, which is a cleaner and less carbon intensive fuel. SPI also has pursued renewable energy sources. In August 2024, the company had development plans to collaborate with a reputable partner to import up to 1,000 megawatts of green electricity from India into Bangladesh. That project is currently on hold.

The need to import electricity from outside Bangladesh is tied to its size. For example, the scarcity of available land in the densely populated country — more than 170 million people live in Bangladesh within about 148,000 square kilometers — has limited the ability to build renewable sources of energy such as solar farms.

Ayesha Khan, managing director and chief executive officer at SPI, said the prevalence of renewable energy is in direct relation to its cost.

“It has to make economic sense. When renewables cost less than fossil fuel-based electricity, then people will switch to renewables. The way renewable is moving, that is what is going to happen,” Ayesha Khan says. She added that Bangladesh is a developing but still a relatively poor country, making it a “very cost-sensitive economy.”

Ayesha Khan adds SPI is following a strategy of seeking competitive rates available by importing power from renewable electricity produced in countries such as Bhutan, Nepal, and India at competitive rates.

“That is the solution,” she says.

Additionally, SPI has created a climate action plan in which the company has committed not to develop new liquid fuel-fired power plants in Bangladesh. Summit intends to derive 40% of energy generation from clean energy sources by 2040. SPI also plans to work with international partners as well as lenders to bring in investments of up to $3 billion in the coming years to contribute to Bangladesh’s clean energy transition journey.

The Impact of Climate Change on Bangladesh

The increasing frequency and intensity of natural disasters, such as floods, cyclones, and rising sea levels, have profound implications for Bangladesh’s economy, infrastructure, and populace.

As Muhammed Aziz Khan points out, Bangladesh practices “green production.” For example, he said the country produces “45 million tons of rice every year in 55,000 square miles.” But, he adds, 50% of that land goes underwater due to floods. Scientists attribute the intensity and frequency of floods to man-made climate change.

The intrusion of saline water into arable lands, a consequence of rising sea levels, can also hamper rice production — a staple food and key export for Bangladesh. Projections indicate that climate change could diminish Bangladesh's agricultural gross domestic product by 3.1% annually, exacerbating food insecurity and threatening livelihoods.

“It's amazing how the very intelligent human beings of today have been marauding Mother Nature, felling trees, using up land for industrial purposes, and emitting greenhouse gases,” Muhammed Aziz Khan says.

Before the U.N. Climate Change Conference in 2024, SPI asked world leaders to recognize the impact of greenhouse gases on places such as Bangladesh that have contributed little to global warming when compared to the rest of the world.

In that statement, Muhammed Aziz Khan asked world leaders to adopt a fair and equitable energy transition plan that acknowledged the potential impact on vulnerable communities and fossil fuel industry workers in developing countries. He also asked for international organizations, governments, and corporations to provide funding and technology that support energy transition, including both development finance and foreign direct investment.

He noted that “different regions will have different timelines to progress towards net zero,” and said the focus in Bangladesh’s power sector is on reducing reliance on coal or heavy fuel oil and increased usage of natural gas.

In addition to the company’s climate action plan and investment in renewable energy, Summit Group will continue to pursue projects that import electricity generated by renewable sources in India, Bhutan, and Nepal.

Summit’s commitment to sustainability culminated in the signing of a Memorandum of Understanding (MOU) relating to a Carbon Neutral Roadmap for Summit between SPI and JERA Asia in 2022 at the Asian Green Growth Partnership Ministerial (AGGPM) Meeting in Tokyo to accelerate adoption of renewable power generation in Bangladesh and support its Paris Agreement goals. The MOU includes pathways for establishing zero emissions targets for Summit, outlining a roadmap to achieve these targets and identifying opportunities to deploy greener fuels such as hydrogen or ammonia in support of decarbonization efforts.

Ayesha Khan, remarked, “As a member of the Climate Vulnerability Forum (CVF), Bangladesh has the ambition to supply 40% of its energy needs from renewable sources by 2041. In line with this, Summit, along with our partner JERA, are aspiring to implement the best practices and adaptation knowledge to reach our zero emissions targets.”

“There is a lot of availability of green electricity in South Asia; we need to harness them and bring it to Bangladesh,” Aziz Khan says. “We aim to be leaders in this role, just as we have been in other infrastructure areas.”

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