The geopolitical and economic environment in South Asia presents unique opportunities for energy cooperation that could redefine the region's infrastructure development trajectory. Summit Group, Bangladesh's largest infrastructure conglomerate, has positioned itself as a key architect of cross-border energy integration, aiming to address both domestic constraints in Bangladesh and broader regional opportunities. By leveraging complementary resources across national boundaries, Summit envisions a more resilient and sustainable energy future for the entire region.
"We are especially looking at cross-border solutions to bring renewable, sustainable electricity solutions to the region,” says Ayesha Khan, managing director and CEO of Summit Group. “If you look at the map, Bangladesh is surrounded by renewable sources in places like Bhutan, in places like the deserts of northern India, and places with abundant hydropower like Nepal, but the demand for energy is on the southern part of the Indian sub-continent and near the port cities. So cross-border renewable electricity solutions are what the region needs."
Countries with abundant renewable resources often lack significant demand, while densely populated areas with high energy consumption face constraints in developing their own renewable capacity. Case in point: Bangladesh. With more than 170 million people concentrated in a relatively small land area, the country faces limitations in developing utility-scale renewable projects.
Geographic Obstacles
Nepal and Bhutan possess significant hydropower potential due to their mountainous topography and abundant water resources. India's vast deserts offer ideal conditions for solar generation. But Bangladesh, with its dense population and growing industrial base, is an energy market with limited domestic renewable resources.
“Because of the size of the country and because of a lot of geographical limitations, Bangladesh does not have that many renewable opportunities," says Ayesha Khan. "It does need to work with India,Nepal and Bhutan for renewable electricity solutions."
Rather than pursuing high-cost, small-scale renewable projects within Bangladesh's limited territory, Summit Group advocates for a regional approach that can deliver renewable energy at competitive prices.
"Bangladesh is a very cost-sensitive economy," Ayesha Khan adds. "It's a developing economy. It cannot afford high-cost electricity, it requires sustainable electricity, but also a very competitive rate that comes from renewable electricity produced in neighboring countries."
Implementation Framework and Technical Considerations
Summit Group envisions a systematically designed framework that would enable electricity to flow efficiently across national borders while maintaining grid stability and energy security for all participating nations.
The technical architecture of this integration would require substantial infrastructure development, including high-voltage transmission corridors connecting generation sources in Nepal, Bhutan, and India with consumption centers in Bangladesh.
Bangladesh and India have already established cross-border transmission interconnections. Building upon this foundation, Summit proposes an expanded grid network that incorporates additional renewable resources from across the region.
"If you look at South Asia as a region, there are some parts and some countries that are blessed with great renewable resources, for example, solar resources in India, and hydropower resources in Nepal and Bhutan,” says Wu Yan Bin, the company’s chief financial officer.
An integrated renewable energy system for the region would be in line with established international precedents. "We’ve seen these solutions being implemented in Europe for the last 20 years,” says Ayesha Khan. “So it's not like it has not been done elsewhere before. All we need to do is repeat the success in other countries and implement it in this region as well."
Economic and Financing Structures
Central to Summit's plans is the need to make cross-border renewable energy financially viable for all stakeholders. The company’s positioning as a Singapore-incorporated entity with access to international financing at competitive rates could help meet this goal.
This position allows it to address a critical challenge in renewable energy development: securing long-term, low-cost financing. "Your weighted average cost of capital goes up to about 18-19%," says Ayesha Khan regarding local financing options in Bangladesh.
By contrast, Summit's Singapore-based structure enables access to U.S. dollar-denominated loans at lower interest rates, which translates directly to more competitive electricity tariffs — a crucial consideration for Bangladesh's cost-sensitive market.
The Political Context
The political environment is another key consideration. On one hand, all countries in the region face similar imperatives around energy security, economic development, and climate commitments. On the other hand, historical tensions and concerns about energy sovereignty can complicate cross-border initiatives. Recently, political changes in Bangladesh have temporarily delayed some regional energy projects, illustrating how domestic political shifts can impact regional integration efforts.
Long-Term Impact
Development of a comprehensive renewable infrastructure framework would have far-reaching implications for South Asia's economic and environmental future.
The geographic constraints, economic realities, and climate vulnerabilities shared across the region demand collaborative approaches, but there are several long-term potential benefits to this partnership.
Matching renewable resources with demand centers across borders allows for more efficient capital allocation, reducing overall system costs. Diversified renewable sources across multiple geographies enhance system resilience against climate-related disruptions. Regional integration enables faster deployment of renewable capacity by overcoming local constraints. And interconnected grids with diverse generation sources reduce vulnerability to supply disruptions.
As the region grapples with the dual imperatives of economic development and environmental sustainability, a regionally integrated energy system offers a pathway that addresses both challenges simultaneously, leveraging energy collaboration as a catalyst for broader economic cooperation and sustainable growth across South Asia.
