The resignation of Bangladesh Prime Minister Sheikh Hasina in the midst of civil unrest has triggered discussions about the consequences of a power supply agreement with Adani Power Limited. This agreement, signed in 2017, involves Adani Power supplying a significant amount of power to Bangladesh for 25 years. Despite concerns over the pricing of coal and the cost of power, the project has been operational since June 2023, providing all the power needs to Bangladesh.
Experts have highlighted the critical need for power in Bangladesh and emphasize that any significant decisions regarding the power purchase agreement (PPA) could impact investor sentiments and the country's energy stability. While there are talks about how a new government in Bangladesh might influence the situation, it is believed to be premature to draw conclusions. The dependence on thermal power due to volatile global gas prices and existing power outages in the country further complicates the situation.
According to a former top bureaucrat in the power ministry, canceling the PPA may not serve the purpose given the energy crisis in Bangladesh, and thermal power is considered a crucial component of the energy mix. Adani Power, despite the political uncertainties, continues to supply power to Bangladesh, aiming to meet the country's energy demands. The political trajectory of Bangladesh under a new government will be closely watched, impacting how future decisions regarding energy projects, like Adani Power's, unfold.