Summit Power to sell 102MW Narayanganj plant to UAE firm

Summit Power Ltd has signed an agreement with Sabson Energy FZCO of the United Arab Emirates (UAE) for the sale and re-export of its Narayanganj Unit I, a 102-megawatt heavy fuel oil-fired power plant.

In a disclosure on the Dhaka Stock Exchange (DSE) website today, the private sector power generation company said the plant commenced commercial operation on April 1, 2011. Following two contract renewals, the latest agreement for electricity supply to the Bangladesh Power Development Board (BPDB) expired on March 22, 2024.

Although the plant resumed operation for another two years based on BPDB's consent letter dated April 29, 2024, under a "No Electricity No Pay" tariff model, no power has been dispatched since August 19, 2024. 

Summit Power has since obtained a no-objection certificate from the BPDB stating that there is no further scope for renewing the power purchase agreement and that the plant's operational lifespan in Bangladesh has ended.

In light of this, the board, in a meeting held on May 8, resolved to sell the power plant and authorised management to explore potential buyers.

The management received interest from two parties and held discussions with both before finalising an agreement with Sabson Energy FZCO, a company incorporated under UAE law with its registered office in Dubai.

As of July 31, 2025, Summit Power's shareholding stood at 63.19 percent for sponsors/directors, 18.51 percent for institutions, 3.65 percent for foreign investors, and 14.65 percent for the public, according to DSE data.