Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

Bangladesh to Retain Power Purchase Agreement with Adani Power

The newly formed government in Bangladesh has decided not to cancel its power purchase agreement (PPA) with Adani Power, according to Iqbal Hasan Mahmud, Minister of Power, Energy and Mineral Resources.

Speaking to a Dhaka-based digital news platform, the minister said the government has no plans to terminate the agreement signed in 2017 during the tenure of former Prime Minister Sheikh Hasina. The deal, under which Bangladesh imports electricity generated by Adani Power in India, had faced criticism from opposition leaders and energy analysts who had earlier questioned its transparency and financial implications.

Despite earlier objections from members of the Bangladesh Nationalist Party (BNP), the current administration has opted for a more measured approach after assuming office. The government indicated that while the agreement will remain in place, certain private power contracts may be reviewed to ensure their terms remain balanced and financially sustainable in the long run.

Officials suggested that instead of scrapping the pact, the government could renegotiate or adjust specific conditions if required while keeping the broader framework of the agreement intact.

The agreement had also faced challenges due to delayed payments from Bangladesh. Outstanding dues to Adani Power reportedly rose from about $800 million to $850 million last year before Bangladesh cleared approximately $437 million in June, reducing the pending amount to roughly $400–450 million.

Currently, Adani Power supplies nearly 1,400 MW of electricity to Bangladesh daily, accounting for around 10% of the country’s average power demand of about 14,000 MW. A significant portion of this supply originates from Adani’s 1,600 MW coal-fired power plant located in Jharkhand, which operates under the long-term contract.

Bangladesh’s reliance on imported electricity has grown in recent years. Data from the Power Grid Company of Bangladesh indicates the country imports between 2,300 MW and 2,656 MW of electricity each day, representing roughly 15–17% of its total supply. Including government-to-government electricity trade arrangements with India, Bangladesh’s total import capacity exceeds 2,800 MW.