India's Adani boosts electricity supply to Bangladesh despite souring diplomatic ties

An official says Bangladesh will also boost coal imports to make up for gas shortages

FILE PHOTO: A view shows high-tension electricity power line pylon outside Adani Power's thermal power generation plant at Mundra in the western state of Gujarat, India, Nov 30, 2024. REUTERS/Amit Dave/File Photo

India's Adani Power is boosting electricity exports to Bangladesh, data from both governments showed, despite worsening bilateral relations and a Bangladesh government-appointed panel calling the supply overpriced.

Exports to Bangladesh from Adani's Godda coal-fired power plant in India's eastern Jharkhand state rose nearly 38 percent annually to about 2.25 billion kilowatt-hours (kWh) in the three months through December, Indian and Bangladeshi government data showed.

That pushed Indian exports to a record 15.6 percent of Bangladesh's power mix for the year, up from 12 percent in 2024, Bangladesh government data showed. Adani began supplying Bangladesh in early 2023.

Electricity trade between the countries is flourishing despite souring diplomatic relations. Both sides have suspended visa services and summoned their envoys over security concerns at diplomatic missions.

BANGLADESH FACING GAS SHORTAGE, PLANS TO BOOST COAL IMPORTS

Power imports are needed to ease shortages, including of natural gas - Bangladesh's main power source - and address an expected 6 percent to 7 percent rise in electricity demand in 2026, Bangladesh Power Development Board Chairman Rezaul Karim told Reuters.

Karim said Bangladesh will also boost coal imports to ramp up domestic coal-fired output this year to make up for gas shortages. Coal imports surged 35 percent to a record 17.34 million metric tons in 2025, data from analytics firm Kpler showed.

Bangladesh is facing gas shortages due to rapidly declining local production and transmission limitations that have impeded use of liquefied natural gas, industry experts say.

The decline in gas-fired generation saw its share of the energy mix plunge to a record-low 42.6 percent last year, government data showed, after accounting for nearly two-thirds of generation in the decade through 2024.

Adani filled the gap, supplying a record 8.63 billion kWh of electricity to Bangladesh in 2025 and making up 8.2 percent of all supply, with imports from other Indian companies rising marginally to 7.92 million kWh, Bangladesh power grid data showed.

During the first 27 days of January, Adani accounted for about 10 percent of all electricity supply.

"Adani electricity is still cheaper than oil-fired electricity. Because of shortages, Bangladesh has to use oil-fired power plants," said Ijaz Hossain, an independent Dhaka-based energy expert.