The recent resignation of Bangladesh's Prime Minister Sheikh Hasina following civil unrest has brought the spotlight on the potential consequences of a power supply agreement with Adani Power Limited. This agreement, signed in 2017, involves Adani Power supplying 1,496 MW of power for 25 years to Bangladesh via a dedicated transmission system connected to the Bangladesh grid from its Godda power plant in Jharkhand, India. The project, which was commissioned in June 2023, is crucial for meeting Bangladesh's demand for power as it currently receives 100% of its power supply from Adani Power.
Despite the necessity of power supply in Bangladesh, there have been concerns raised in the past regarding the pricing of coal by Adani Power. In February 2023, authorities in Bangladesh reached out to India to request a revision of the agreement with Adani Power Ltd due to what was deemed as "excessive" pricing of coal. With the resignation of Prime Minister Sheikh Hasina and a new regime potentially taking over, there are discussions surrounding the potential impact on Adani Power. However, experts caution that it is premature to draw conclusions at this stage.
Experts highlight the urgent need for power in Bangladesh and the importance of maintaining investor confidence, suggesting that canceling the power purchase agreement (PPA) may not serve the country's interests considering the ongoing power outages. The former top bureaucrat in the power ministry emphasizes that while a new government may renegotiate terms in the future, thermal power currently accounts for a significant portion of the country's energy mix, with the remainder sourced from liquefied natural gas. Amidst the political uncertainty, Adani Power continues to honor its agreement, supplying power to Bangladesh without disruptions.