- Adani Group is cutting Bangladesh’s power supply by half, citing $850 million in unpaid bills, forcing the country to address energy shortfalls.
- Bangladesh faces a 1,680 MW shortfall but imports 1,160 MW from India while urging reduced electricity consumption to manage the crisis.
- Heavy reliance on foreign power exposes Bangladesh’s energy vulnerability, highlighting the risks of cross-border energy dependence.
Adani Group has slashed Bangladesh’s electricity supply by half, citing $850 million in unpaid bills. This decision forces Bangladesh to address its rising energy demand, especially during extreme heat, though a slight reprieve may come in November.
Rezaul Karim, President of the Bangladesh Power Development Board (BPDB), confirmed the reduction and stated that the government is working to cover the shortfall. “We are negotiating with Adani, but it’s not feasible to pay the entire debt in one month,” said Karim. Bangladesh paid Adani $97 million in October, exceeding its payments over the last three months to reduce the debt.
Adani had received a warning in September about the financial strain caused by unpaid bills. The conglomerate faces increasing pressure to honour its commitments. Its Godda coal-fired power plant in Jharkhand, India, a $2 billion project inaugurated last year, plays a crucial role in Bangladesh’s power supply. Typically, the plant provides 7-10% of Bangladesh’s 13-gigawatt (GW) energy needs. After the cut, however, the plant only supplied 724 megawatts (MW), significantly below its 1,496 MW capacity.
Bangladesh currently faces a 1,680 MW power shortage due to the supply reduction. To address this, it is importing 1,160 MW from the Indian states of West Bengal and Tripura. Authorities have urged citizens to cut down on air conditioning use, a significant driver of electricity demand, to reduce the strain.
With about 45% of its electricity imported, Bangladesh relies heavily on foreign energy, making it vulnerable to supply disruptions. The government is pushing to increase local power generation, but the crisis has exposed the risks tied to over-dependence on external suppliers.
If Bangladesh fails to resolve the outstanding debt quickly, Adani may reduce the supply further, forcing the country to turn to more costly and inefficient energy alternatives. This move would likely increase costs as Bangladesh races to meet its power demands.
The situation reveals the weaknesses in Bangladesh’s energy infrastructure and raises concerns about its financial management, particularly in the power sector. The BPDB faces scrutiny over its handling of situations, with questions about debt management and energy policy sustainability.
This crisis highlights the risks of cross-border energy deals, showing how dependence on external suppliers can leave countries vulnerable. Experts believe Bangladesh’s case with Adani could be a cautionary tale for other nations facing similar challenges.
The BPDB continues to explore ways to mitigate the impact of the supply cut, but Bangladesh must make critical decisions about its energy future. Both Adani and Bangladesh remain under pressure to resolve their financial dispute while ensuring stable power for the country.