The government is planning to import more electricity from India's Adani Group despite controversies surrounding previous deals. This time, the plan is to import 100 MW of solar power from the Indian conglomerate. However, Power Division officials have not yet confirmed when this import will begin.
Last year, Adani Group made a verbal proposal to the Bangladesh Power Development Board (BPDB) to export 1,600 MW of electricity from renewable sources. As part of this proposal, the government has decided to import 100 MW of solar power in the first phase.
During a recent international energy workshop, BPDB Chairman Md Mahbubur Rahman presented Bangladesh's ambitious plans to generate power from clean sources, with a significant portion expected to be imported from Bhutan, Nepal, and India. "Initially, 100 MW of solar power will be sourced from Adani Group," he said.
Currently, Adani Group exports 1,600 MW of electricity from its Godda coal power plant in the eastern Indian state of Jharkhand. This arrangement has been controversial due to allegations that Adani is charging high prices for low-quality coal supplied to BPDB. Furthermore, the power purchase agreement (PPA) with Adani has faced scrutiny as well.
PPA details and public outcry
In November 2017, BPDB signed a 25-year PPA with Adani Group, committing to pay over Tk 1 lakh crore in capacity charges over the plant's lifetime. Capacity payments include the monthly electricity bill, covering the construction cost of the power plant and bank interest. Even if the plant remains idle, these payments must still be made.
Adani Group sources indicate that although the Godda power plant was built at a cost of Tk 20,000 crore, the capacity payment will be five times that amount.
In 2023, there was significant public outcry over inconsistencies in the PPA with Adani. Transparency International Bangladesh (TIB) recommended involving experts to analyse, amend, or even cancel the contract if necessary. BPDB sought amendments to the PPA, but Adani did not agree to these changes, according to Power Division sources.
Critics argue that the PPA with Adani favours the company's interests over those of Bangladesh. BPDB has also objected to the high price of imported coal for Adani's power plant.
Recent meeting and future plans
There are also issues regarding payments for the electricity imported from Adani Group. Information presented in the national parliament last month revealed that Adani's power plant is owed Tk 3,637 crore by BPDB as of February, with the amount exceeding Tk 5,000 crore including dues from March to May.
Recently, Pranav Vinod Adani, managing director (Agro, Oil and Gas) and director of Adani Enterprises, met with Finance Minister Abul Hassan Mahmood Ali to discuss the outstanding payments. They also discussed exporting 100 MW of solar power to Bangladesh. Sources from the meeting informed The Business Post that Pranav Vinod Adani invited the finance minister to visit their solar power plants in India, and the minister agreed to visit at his convenience.
After the meeting, Finance Minister Abul Hassan Mahmood Ali told reporters, "Adani has already made significant investments in Bangladesh and wants to invest more. We welcome the investment."
Pranav Vinod Adani also expressed optimism, highlighting the numerous opportunities in Bangladesh and discussing potential investment contributions.
Criticism and concerns
However, Prof M Shamsul Alam, energy advisor of the Consumers Association of Bangladesh (CAB), criticised the current agreement with Adani Group, calling it questionable. "They drafted it, and we just signed it. There is no precedent anywhere in the world of bringing in a foreign company to profit so much," he said.
Regarding the new 100 MW solar power import plan, he questioned whether Bangladesh genuinely wanted to buy from Adani.
Adani targets 1,600 MW of renewable energy export
BPDB sources revealed that the government aims to generate 40 per cent of its power from clean sources by 2041, with a significant portion to be imported from India, Nepal, and Bhutan.
In line with this goal, Adani Group proposed last year to export 1,600 MW of renewable energy to Bangladesh, comprising 1,000 MW of solar power from India and 600 MW of hydropower from Nepal.
Bangladesh plans to start importing 40 MW of power from Nepal in July, with a potential agreement for an additional 500 MW from another Indian company, GMR Group's Upper Karnali Hydropower Plant in Nepal.
Recently, State Minister for Power, Energy, and Mineral Resources Nasrul Hamid said, "The government is placing special emphasis on renewable energy. The process of generating 9,930 MW of electricity in this sector is underway. There are also plans to import electricity from renewable sources from neighbouring countries."
