Bangladesh Seeks Full Power Supply Restoration from Adani Plant

Bangladesh is actively working to restore full power supply from the Adani Power plant in India, following recent disruptions caused by payment delays and geopolitical tensions. The Bangladesh Power Development Board (BPDB) has been in discussions with Adani Power to resolve the issues and resume normal power supply from the 1,600-megawatt (MW) plant in Jharkhand.

The power supply disruptions have had a significant impact on Bangladesh's energy security and economic stability. The country has been facing a severe power shortage, with load-shedding hitting record highs in recent weeks. The situation has been exacerbated by the damage caused by Cyclone Remal to one of the two floating storage and regasification units (FSRUs), which reduced the LNG regasification capacity to 600 million cubic feet per day (mmcfd) from 1,100 mmcfd. The FSRU is expected to resume operations on September 15, but the situation will not improve immediately due to the time required for LNG cargo to arrive.

The payment delays and geopolitical tensions have strained the relationship between Bangladesh and India, as well as the power supply agreement between Adani Power and Bangladesh. Bangladesh has accused Adani of breaching the power-purchase agreement by withholding tax benefits, while Adani has alleged that Bangladesh has not paid its dues. This has resulted in Adani halting power supply to Bangladesh on multiple occasions, most notably in November 2024, when one unit of the Godda plant was shut down due to payment delays.

The Bangladesh government has appointed a panel of experts to examine major energy deals signed by the previous government, including the Adani Power agreement. This review could potentially lead to contract renegotiations, further straining the relationship between the two countries. The U.S. indictment of Adani Group founder Gautam Adani and seven other executives for their alleged role in a $265 million bribery scheme in India has added another layer of complexity to the geopolitical tension between Bangladesh and India, as well as the power supply agreement between Adani Power and Bangladesh.

The potential long-term implications for both countries include energy security, economic impact, political relations, and reputation. Bangladesh may seek alternative energy sources to reduce its dependence on Indian power, potentially leading to increased investment in renewable energy or negotiations with other countries for power supply. The power supply disruptions and potential renegotiation of the power purchase agreement could have significant economic implications for both countries, affecting industries and consumers. The geopolitical tension and power supply disputes could strain the political relationship between Bangladesh and India, potentially impacting other areas of cooperation, such as trade, security, and regional integration. The ongoing disputes could damage the reputation of both Adani Power and the Bangladesh government, as well as erode trust between the two countries, making it more difficult to negotiate future agreements.



In conclusion, Bangladesh is actively seeking to restore full power supply from the Adani Power plant in India, as the country faces severe power shortages and geopolitical tensions. The potential long-term implications for both countries include energy security, economic impact, political relations, and reputation. As Bangladesh works to resolve the issues and resume normal power supply, it is crucial for both countries to maintain open communication and cooperation to ensure the stability of the power supply and the overall economic well-being of the region.