Adani Power's Electricity Exports to Bangladesh Rise Despite Strained Ties

Adani Power has stepped up electricity exports to Bangladesh, according to official data from both countries, even as bilateral ties face strain and a Bangladesh government-appointed panel has flagged concerns over the pricing of the supply.

Electricity shipments from Adani’s Godda coal-fired power plant in Jharkhand rose by nearly 38 per cent year-on-year to around 2.25 billion kilowatt-hours (kWh) during the three months ending December, Indian and Bangladeshi government figures show. As a result, power imports from India accounted for a record 15.6 per cent of Bangladesh’s electricity mix over the year, up from 12 per cent in 2024, Reuters reported. Adani began supplying electricity to Bangladesh in early 2023.

The growth in cross-border power trade comes despite a deterioration in diplomatic relations between the two neighbours, with both sides suspending visa services and summoning envoys amid concerns over security at diplomatic missions.

Bangladesh’s rising dependence on imported power is being driven largely by domestic energy constraints. Bangladesh Power Development Board chairman Rezaul Karim said power imports are essential to ease shortages, particularly of natural gas, which remains the country’s primary fuel for electricity generation. He noted that electricity demand is projected to rise by six to seven per cent in 2026.

Karim said the government also plans to increase coal imports to boost domestic coal-based power generation and compensate for gas shortfalls. Data from analytics firm Kpler show that Bangladesh’s coal imports surged 35 per cent to a record 17.34 million metric tonnes in 2025.

Industry experts attribute the gas crunch to rapidly declining domestic production and transmission bottlenecks that have limited the effective use of liquefied natural gas. As a result, the share of gas-fired power generation fell sharply to a record low of 42.6 per cent last year, compared with nearly two-thirds of total generation for much of the decade through 2024, according to government data.

Amid this shift, Adani Power emerged as a key supplier. In 2025, the company supplied a record 8.63 billion kWh of electricity to Bangladesh, accounting for 8.2 per cent of the country’s total power supply. Imports from other Indian power producers rose marginally to 7.92 million kWh, Bangladesh power grid data showed. During the first 27 days of January, Adani alone contributed roughly 10 per cent of Bangladesh’s total electricity supply.

Despite concerns over pricing, energy experts note that the imports remain economically viable. “Electricity from Adani is still cheaper than oil-fired power,” said Ijaz Hossain, an independent energy expert based in Dhaka. “Due to shortages, Bangladesh is compelled to rely on oil-based power plants, which are significantly more expensive.”