Adani Power to Supply Energy to Bangladesh in Reduced Price

BUSINESS

According to reports, Bangladesh will receive less expensive electricity from Adani Power. The state-run power development board Bangladesh Power Development Board (BPDB) had previously requested that the power purchase agreement (PPA) it had signed with Adani Power to import electricity from its thermal power plant in Jharkhand be revised.

According to a report, Adani Power will import the coal for its plants at the same price the Bangladeshi coal-run plants do for themselves. This month, Bangladesh’s state-run Power Development Board (PDB) sought to amend its 2017 power purchase agreement with Adani Power Ltd. due to the price of coal-generated electricity.

However, Adani Power sent a five-member delegation to Bangladesh on February 23, 2023, as the “high coal price” for the Adani plant in India’s Jharkhand emerged as the primary cause of the dispute.

After receiving a request from Adani Power to import coal for the 1,600 MW Godda district of Jharkhand plant, Bangladesh reportedly requested a price increase. Because the plant is intended to export power to the neighboring nation, Adani Power requires a demand note from Bangladesh that will be presented to Indian authorities prior to the opening the business against the import of coal.

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Bangladesh currently purchases 1,160 MW of electricity from India, but under the terms of the 2017 agreement, it is expected to begin purchasing electricity from Adani Power Ltd. in March of this year.