Reza Mahmud :
The power sector in Bangladesh is facing a prolonged crisis, exacerbated by fuel shortages at most power plants, leaving energy experts concerned about the long-term impact. They also pointed to ongoing disputes with India’s Adani Power as a contributing factor.
In October, Adani reduced its electricity supply to Bangladesh by half, and in early December, the Bangladesh government requested India to continue providing 700 to 800 MW, which is half of its capacity.
Energy experts highlighted that many government and privately managed power plants in Bangladesh are suffering from fuel shortages and maintenance issues. For instance, the Matarbari 1,200 MW coal-fired power plant was shut for an extended period due to a coal shortage but resumed production on December 6 following the arrival of coal supplies.
Similarly, one unit of the Rampal coal-fired power plant and one unit of S Alam Group’s S S Power have been closed for a prolonged period due to fuel shortages. As a result, Rampal’s production has been halved to 617 MW, while S S Power’s output has been reduced to 692 MW from its full capacity of 1,224 MW.
At present, about 22 power plants are either partially or completely shut down due to a shortage of gas, and 27 furnace oil or diesel-run plants are similarly affected due to a lack of fuel. As a result, load shedding has been reported, despite the lower electricity demand typical of winter. Currently, around 1,000 MW of load shedding is occurring.
Despite these challenges, the Bangladesh Power Development Board (BPDB) maintains that there is no electricity shortage in the country. BPDB Chairman Md. Rezaul Karim told The New Nation on Friday, “During peak hours, the electricity demand ranges between 9,000 MW and 9,500 MW, and we are able to meet that demand.”
However, energy experts disagree with this statement, stressing that many power plants are struggling with fuel and maintenance issues. Professor M. Shamsul Alam told The New Nation, “It is the beginning of winter, so electricity demand is lower than during the hot summer. However, most government and private plants are facing maintenance and fuel crises. The government must take immediate action to prevent a potential disaster in the power sector.”
BPDB Chairman Karim acknowledged that some plants remain closed and have been directed to repair and maintain them. Energy Affairs Adviser Muhammad Fauzul Kabir Khan, however, downplayed the issue, saying there would be no major problems arising from Adani halving its power supply. He added that the government is working to ensure the supply of coal and other fuels and to repair the closed plants.
Sources revealed that Adani Power provides electricity to Bangladesh from two units of its Jharkhand power plants, each with a capacity of 800 MW. In October, due to disputes over payment, Adani reduced its supply to Bangladesh by half. The Indian company demanded around USD 900 million in dues, while Bangladesh owes Adani approximately USD 650 million. Bangladesh has paid USD 85 million in November and USD 97 million in October.
Experts also pointed out that Bangladesh has failed to secure a favourable deal with Adani. Official sources noted that the cost of electricity from Adani’s plants was Tk 14.87 per unit for the last financial year (ending June 30, 2024), while the average cost of electricity from other Indian plants was Tk 9.57 per unit. Meanwhile, the retail price per unit of electricity is Tk 8.95, forcing the government to subsidise the electricity sector with Tk 320 billion (approximately USD 2.7 billion).
