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

Adani Power's Godda coal-fired plant in Jharkhand increased electricity exports to Bangladesh by 38% year-on-year in Q4, raising India's contribution to 15.6% of Bangladesh's power mix. The surge occurs despite diplomatic strains, underscoring growing regional energy interdependence amid gas shortages and policy adjustments.

India’s Adani Power has significantly increased electricity exports to Bangladesh, even as diplomatic relations between the two neighbouring countries have shown signs of strain, according to government data from both sides.

Electricity exports from Adani’s Godda coal-fired power plant in Jharkhand rose by nearly 38 per cent year-on-year during the October–December quarter, reaching around 2.25 billion kilowatt-hours (kWh). With this increase, India’s power supply now accounts for 15.6 per cent of Bangladesh’s total electricity mix, up from 12 per cent in 2024.

Adani Power began supplying electricity to Bangladesh in early 2023, and its role has steadily expanded. In 2025 alone, the company supplied a record 8.63 billion kWh, contributing 8.2 percent of Bangladesh’s total electricity supply. During the first 27 days of January this year, Adani’s share reportedly rose to about 10 per cent of the country’s power supply.

The rise in electricity trade comes despite worsening diplomatic ties between India and Bangladesh. Both countries have suspended visa services and recalled envoys following concerns over the security of diplomatic missions.

Bangladesh is increasingly relying on power imports to address shortages caused by declining domestic natural gas production. Natural gas remains the country’s primary energy source, but supply constraints and infrastructure limitations have reduced its availability.

Bangladesh Power Development Board Chairman Rezaul Karim said the country is preparing for a 6 to 7 per cent increase in electricity demand in 2026, making imports essential to bridge the supply gap.

To counter the gas shortage, Bangladesh also plans to ramp up coal-based power generation. Coal imports surged 35 per cent in 2025 to a record 17.34 million metric tonnes, according to data from energy analytics firm Kpler.

Government data shows that gas-fired power generation fell to a record low 42.6 per cent of the overall energy mix last year, compared to nearly two-thirds over the past decade. The shortfall has been partly offset by increased electricity imports from India.

Despite concerns raised by a Bangladesh government-appointed panel over the pricing of imported power, electricity trade between the two countries continues to grow, highlighting the region’s deepening energy interdependence amid shifting geopolitical dynamics.