Bangladesh’s dependence on India for energy imports unlikely to ease soon

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With Bangladesh importing an average of 1,780 MW of electricity from India daily, accounting for 15-17% of its total demand, the country's reliance on Indian energy sources remains steadfast amid domestic power sector challenges

Staff Correspondent

Publisted at 8:59 AM, Tue Feb 4th, 2025

Bangladesh continues to import an average of 1,780 megawatts of electricity from India daily, contributing 15-17% of the nation's power demand.

The country’s heavy reliance on Indian electricity stems from persistent fuel shortages and outstanding dues plaguing local power plants.

Additionally, a substantial quantity of fuel oil is being imported through pipelines from India to mitigate the ongoing energy crisis.

Experts in the sector see no imminent possibility of reducing this dependence.

Against this backdrop, Power, Energy, and Mineral Resources Adviser Faozul Kabir Khan is set to attend the Energy Week Summit in New Delhi from 11-14 February. 

He will be the first member of the interim government’s advisory council to visit India since assuming office.

Invited as a special guest and speaker, he is expected to participate in discussions on 11 and 12 February before returning home prior to the summit’s conclusion.

He stated that his attendance was contingent upon the chief adviser’s approval. 

The energy ministry has since confirmed that the Prime Adviser’s Office has granted permission, and an official directive has been issued.

A senior ministry official, speaking on condition of anonymity, disclosed that the summit is being organised by India’s Ministry of Petroleum and Natural Gas.

Fouzul Kabir Khan is scheduled to depart Dhaka on 10 February and will take part in the two-day conference before returning.

At present, Bangladesh imports 1,160 MW of electricity from India under a government-to-government agreement.

Additionally, a deal exists to import 1,600 MW from Adani Power’s Godda plant in Jharkhand, while India also provides financial backing for the 1,320 MW power plant in Rampal, Bagerhat.

The power purchase agreement with Adani, signed during the Awami League’s tenure, has drawn criticism from energy sector analysts, who argue that the contract is financially unbalanced and has exacerbated losses for the Bangladesh Power Development Board (BPDB).

Analysts caution that unless outstanding liabilities in the energy sector are addressed, reducing dependence on Indian electricity will remain a distant prospect.

Insufficient fuel supply for domestic power plants continues to be a major obstacle.

Forecasts for the upcoming summer irrigation season and Ramadan have already factored in electricity imports from India as a key element of the national grid’s supply planning.

A meeting between the Ministry of Finance and the Ministry of Power, Energy, and Mineral Resources took place on Monday (3 February) to discuss electricity sector arrears, fuel imports, and procurement agreements, including the Adani contract. 

The discussion also focused on projected power demand for Ramadan and the summer season, as well as strategies to mitigate potential supply shortages and secure necessary financial resources.

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