Murray Spence is the Australian Trade and Investment Commission’s (Austrade) trade and investment commissioner for South Asia. He is in Dhaka with a delegation of eight Australian companies exploring investment opportunities in Bangladesh’s renewable energy sector. The companies specialise in solar power and battery energy storage and are seeking local partners. In an interview with The Daily Bonik Barta, Spence discussed the potential for solar power to ease electricity shortages in Bangladesh’s industrial sector, investment opportunities, battery storage technology and the need to diversify critical mineral supply chains.

Could you tell us about your role and your work’s relevance to Bangladesh?

I’m a trade and investment commissioner with the Australian Trade and Investment Commission. We facilitate business-to-business introductions and try to facilitate investment into Australia and output from Australia.

I’m based in Bangalore, India, but I’m responsible for South Asia, including India, Bangladesh, Sri Lanka and three other smaller markets. My focus is on energy, including mining, renewable energy, the building sector and green buildings.

You are visiting Bangladesh to lead a delegation representing eight Australian companies. Tell us about the delegation. What kind of investment opportunities are they looking for?

As I mentioned, one of the things we do is facilitate international business-to-business matching. The eight companies here are interested in renewable energy, particularly solar power and battery energy storage, and all have relevant capabilities.

These range from production to installation and research and development. We have representatives of the manufacturer of the largest battery storage facility in the world, as well as solar panel manufacturers, companies involved in residential, commercial, industrial and utility-scale installations, solution providers and organisations involved in training, research and development.

So we have the whole spectrum represented by these eight companies, and they are interested in exploring the opportunities in Bangladesh’s clean energy sector. Essentially, they are here to look for partners and ways to bring Australian knowledge, innovation and technology to Bangladesh and contribute to the development of its renewable energy sector.

Initially, what level of investment are these eight companies proposing?

I can’t answer that at this stage because every company is different. What we’re here to do is assess the opportunities. I think the potential is significant, not just because of the market itself. Bangladesh has more than 170 million people, compared with Australia’s 28 million, so the population here is roughly six times larger. That creates an opportunity to scale up.

But to do that, I think many of these companies understand that they need local partnerships, specific applications and a better understanding of the market, including pricing, services, infrastructure and quality.

They are at the beginning of their journey in Bangladesh. I’m sure many of them are open to different business models that could work here. These could include licensing, a joint venture or a 100 percent venture, if that is possible. That may also involve local manufacturing.

Once they understand the projects and their potential, they will be in a better position to determine how much they need to invest. But I think they are willing to invest their time, energy and knowledge in the market to begin with.

Have there been any assessments so far?

If you mean the business opportunities, business-matching sessions are taking place as we speak. We held a session recently facilitated by the Bangladesh Sustainable and Renewable Energy Association (BSREA), and we are now holding another session in which these companies are presenting their capabilities to members of the Australia Bangladesh Chamber of Industry and Commerce.

So the business matching is underway. I can’t give you any outcomes yet because the discussions are still taking place.

What technologies can deliver the fastest and most affordable relief from power shortages in Bangladesh’s industries?

Rooftop solar is one option, and your government is already working on it. Some solutions have also been rolled out previously.

Given the lack of available land in Bangladesh, rooftop solar is obviously one of the easiest ways to proceed. I think it is a matter of introducing training or regulations to assess the efficiency of existing installations. We could go back, identify the problems and upgrade those systems. That could have an immediate impact, alongside the rollout of new solutions.

As I mentioned earlier, our delegation includes companies with renewable energy solutions for industrial applications, including solar power.

Will the Australian companies invest in Bangladesh or primarily export equipment?

I don’t think we will be exporting to Bangladesh because, although Australia has a strong manufacturing industry, our costs are very high compared with Bangladesh’s. I don’t think that model is viable.

One important thing is to show these companies the opportunities and help them understand that they could manufacture a product in Australia at a high price and sell two units, or transfer the technology to Bangladesh, manufacture it at a lower cost and sell a million units at $1 each. Which is the better model? It really depends.

But I don’t think manufacturing in Australia and selling to Bangladesh is going to work.

How can utility-scale battery storage help Bangladesh absorb more renewable power without costly grid upgrades?

A grid is essential. You can look at an incident in a neighbouring country last week, when solar power generation exceeded what the grid could accommodate and there was a problem. So having the necessary infrastructure is essential.

We have relevant capabilities in Australia. For example, one in three homes in Australia has solar with a battery. The Australian government has provided consumers with a 30 percent subsidy towards the purchase and installation of a battery. As a result, more than half a million batteries have been installed in Australian homes.

The same thing could be done here if subsidies were available and there were incentives for people. If they understand that they will save money in the long term, they could install rooftop solar and batteries in their homes. That would reduce costs and the drain on the grid itself. They could generate electricity during the day and use it at night, bringing down the price of electricity.

If you’re talking about industry, you’re talking about substantial amounts of power. Before those projects can be realised, the grid has to be in place.

As I mentioned, our delegation includes Akaysha, the world’s largest industrial battery storage owner and operator. The company has the technology to do this, but I’m sure that, as it works through individual projects, it will need to ensure that the grid has the capacity to accommodate the power generated and stored.

What specific, bankable clean energy projects could emerge from this visit, and what investment and timelines might they involve?

One of the events is the launch of a report that was commissioned following our initial visit in April. We came here with representatives of Deakin University, one of Australia’s reputable universities, including a professor specialising in renewable energy, and members of the Smart Energy Council, Australia’s peak energy body.

We spent four days in Bangladesh, meeting government officials, utility companies and the relevant industry association to conduct a scoping study on how we could help accelerate Bangladesh’s renewable energy journey.

The report identifies 10 possible areas of focus where projects could be developed. It provides a framework, or roadmap, for how Australian companies could contribute. There are no specific companies nominated. Instead, the report identifies clear areas where we should concentrate our efforts.

As geopolitical competition reshapes critical mineral supplies and clean energy trade, how can Australia help Bangladesh attract investment without becoming dependent on any single country or technology supplier?

The geopolitical climate is changing. Over the past five years, we have seen a radical rebalancing and disruption caused by wars and conflicts, and everything is changing.

I think critical minerals is a very important area because they are becoming increasingly important globally. In the renewable energy sector, for example, battery production and battery storage require lithium, graphite, silica and vanadium. Australia has large deposits and substantial supplies of these minerals.

During my visit to Bangladesh, one message has come through clearly: the country needs investment.

Australia is also seeking investment to develop its mineral deposits. We have many projects that companies or countries could invest in to help us extract these critical minerals and become a reliable supplier to the rest of the world.

We want to attract investment so that we can supply these minerals. It is all about diversification: diversifying where you source minerals and technology so that you are not overly reliant on any one source. We are looking for trusted partners in this area.

What is your message to Bangladeshi investors and industrialists about Australian companies?

I think there are great projects here in Bangladesh that need your support. Australian companies can bring products, know-how, systems and innovation, but we need investment here to realise those projects and help Bangladesh on its journey towards renewable security, economic security and energy security.