Bangladesh's Power Struggle: Adani Cuts and the Fuel Oil Surge

Bangladesh faced a significant reduction in electricity imports from Adani Power's Jharkhand plant in November due to a payment dispute, forcing the nation to rely more heavily on fuel oil for power generation. The import cut highlights Bangladesh's ongoing energy challenges amid foreign exchange shortages.

In a significant development, Bangladesh witnessed a near one-third drop in electricity imports from Adani Power's plant in Jharkhand, India, during November, as revealed by Indian government data. This has compelled Bangladesh to increase its dependence on fuel oil to meet its power generation needs.

The reduction followed an abrupt supply cut by Adani due to a dispute over unpaid dues. Bangladesh, facing a severe foreign exchange shortage, has been urging Adani to renegotiate the supply price, which is currently the highest in the country. This occurred after Adani had committed to a 25-year power supply agreement under the former Prime Minister Sheikh Hasina's government in 2017.

Data from the Eastern Regional Power Committee of India indicated a 32.8% annual decline in electricity exports from the Godda plant, which was responsible for 9% of Bangladesh's power under the agreement. Consequently, Bangladesh saw a notable increase in fuel oil usage for power generation, rising nearly 48% in November, marking a shift in energy consumption patterns.

(With inputs from agencies.)