The power sector in Bangladesh is currently grappling with a multifaceted crisis that threatens to undermine the nation’s economic stability and development.
Our newspaper on Saturday reported that with fuel shortages plaguing both government and privately managed power plants, the situation has reached a critical juncture, raising alarms among energy experts and stakeholders alike.
Recent developments have highlighted the precarious state of electricity supply in the country.
The decision by Adani Power to halve its electricity supply to Bangladesh has compounded existing challenges, as the government struggles to secure adequate energy resources.
The ongoing disputes over payments, with Bangladesh owing approximately USD 650 million to Adani, have only exacerbated the situation.
While the Bangladesh Power Development Board (BPDB) insists that electricity demand is being met, the reality on the ground tells a different story.
Reports of load shedding, even during the typically low-demand winter months, indicate a troubling disconnect between official statements and the lived experiences of citizens.
The closure of numerous power plants due to fuel shortages and maintenance issues is particularly concerning.
The Matarbari coal-fired power plant, for instance, was recently shut down for an extended period, only resuming operations after coal supplies were finally secured.
With around 22 power plants either partially or completely offline, the implications for economic productivity and public welfare are dire.
As energy experts aptly noted, the government must act swiftly to avert a potential disaster in the power sector.
Moreover, the financial implications of the current crisis cannot be overlooked.
The cost of electricity from Adani’s plants is significantly higher than that from other sources, placing an unsustainable burden on the government, which is already subsidising the electricity sector to the tune of Tk 320 billion (approximately USD 2.7 billion).
This financial strain not only threatens the viability of the energy sector but also diverts crucial resources away from other pressing developmental needs.
Now the government must take decisive action including renegotiating terms with Adani Power to secure a more favourable deal, investing in alternative energy sources, and prioritising the maintenance and operation of existing power plants.
The time for complacency has passed; the future of Bangladesh’s energy security and economic prosperity hangs in the balance. We urge the government to adopt a comprehensive strategy to restore stability in the power sector before it is too late.
