Summit Power Ltd (SPL), the largest private power producer in Bangladesh, will cease operations at three of its power plants from April 1, 2025, following the Bangladesh Rural Electrification Board’s (BREB) decision not to renew their power purchase agreements (PPAs).

The affected plants—Rupganj, Maona, and Ullapara—have a combined capacity of 77 MW and have been supplying electricity to BREB since 2009 under 15-year agreements. The contracts expired between March and June 2024.

According to a disclosure on the Dhaka Stock Exchange (DSE) today, despite Summit Power’s request to extend the PPAs and a consent letter from BREB allowing continued power supply last year, the regulator confirmed in a letter dated March 11 that the contracts would not be renewed.

Following the announcement, Summit Power’s share price dropped by 5.10%, closing at Tk 14.90 on the DSE.

The company reported a 37.4% decline in earnings per share (EPS), which fell to Tk 1.07 during July-December 2024 from Tk 1.71 in the same period a year earlier. According to its unaudited financial statements, its total comprehensive income also decreased to Tk 2.01 billion in the first half of the 2024-25 financial year from Tk 309.25 crore in the previous year.

Summit attributed the profit decline to the non-renewal of PPAs and the operation of three other power plants under a “no electricity, no payment” arrangement, meaning they do not receive capacity payments despite having renewed contracts.

Summit Power currently owns and operates 15 power plants nationwide, with a total installed capacity of 976 MW.