Bangladesh under pressure from two sides over Adani’s costly power deal, grid constraints

POBNEWS24, Dhaka July 15, 2026 : The power purchase agreement (PPA) with Adani Power, which has been under discussion in Bangladesh’s power sector, is now facing fresh questions not only over high prices but also over supply uncertainty, national grid capacity and risky terms of the contract. The government’s review committee has already called the contract unusually costly and procedurally flawed. At the same time, multiple supply cuts due to technical glitches have also put Bangladesh’s energy security in question.
Bangladesh is bound by long-term financial obligations under the contract signed in 2017 to supply a maximum of 1,600 MW of power to Bangladesh from India’s Gadda power plant in Jharkhand. The government-appointed national review committee report said that Adani’s power price is about 40-50 percent higher than other comparable imported power and that several clauses, including coal pricing, are working against Bangladesh.
According to the committee, the burden of Indian taxes has also been added to the tariff, which is not in line with international practice. These factors have further increased the financial pressure on the Bangladesh Power Development Board.
Not only the price, but also the reliability of supply has been questioned. A recent technical fault caused the shutdown of a unit at the Godda power plant, cutting Bangladesh’s electricity supply by almost half. This forced the national grid to rely on alternative sources to make up for the shortfall.
According to power sector experts, over-reliance on a large foreign source poses risks to grid operation. If a unit suddenly shuts down, domestic plants have to be quickly brought into operation to maintain balance, which creates additional costs and operational pressure.
Although Bangladesh’s national grid has expanded in the past few years, experts believe that more advanced grid management, reserve capacity and real-time dispatch capabilities are needed to ensure uninterrupted operation in the event of large-scale cross-border power imports. In the past, weaknesses in transmission infrastructure and coordination deficiencies have caused major blackouts in Bangladesh’s power sector.
According to the government review committee, the contract structure is designed in such a way that a large part of the market price, currency fluctuations or operational risks are borne by Bangladesh, while investor profits are largely protected.
Recent analysis has shown that long-term high-value contracts in the power sector have significantly increased the losses of the Bangladesh Power Development Board. Various review reports have identified the Adani contract as one of the reasons for this financial stress, although it is not the only reason; capacity charges, excess generation capacity and other high-value contracts also play a role.