Adani Power’s Godda plant in Jharkhand has led to a full shutdown of its power supply to Bangladesh.

The complete shutdown of power supply from Adani Power’s Godda coal-fired plant in Jharkhand to Bangladesh from November 7, 2024, presents significant challenges for Bangladesh’s power infrastructure. This disruption stems from technical issues that rendered both units of the plant non-operational. Adani Power’s Godda plant, which has been providing up to 1,500 MW of electricity daily to Bangladesh, plays a critical role in supplementing the country’s power supply, helping meet peak demands that exceed domestic generation capacities. Without this power import, Bangladesh’s grid stability is under pressure, leading to an increase in load shedding measures and the need to manage demand efficiently until the supply resumes​.

Technical Faults and Shutdown

The issues at Adani’s plant began with routine maintenance, during which the first unit was taken offline. Soon after, a fault developed in the second unit, affecting its boiler and rendering the unit inoperable. Due to the high temperatures, Adani engineers could not immediately investigate the full extent of the issue. Although this fault was expected to be temporary, the unplanned outage of both units simultaneously has led to a sudden halt in the energy supply to Bangladesh. With repairs anticipated but not yet scheduled, there’s uncertainty around when the plant might resume full operations​.​

Impact on Bangladesh’s Power Grid

Bangladesh’s Power Development Board (PDB) has expressed concern about the outage, especially given the country’s heavy reliance on power imports from India. As of 2023, Bangladesh imported over 1,000 MW from India through various channels, including the Adani plant and other smaller facilities. The Godda plant alone, contributing approximately 10% of Bangladesh’s peak electricity needs, has become a crucial energy source. With the current outage, authorities have already reported increased load shedding and have activated alternate power plants to cover the deficit, though they fall short of matching peak demand, estimated at around 14,000 MW​

Bangladesh’s Response and Long-Term Concerns

This disruption comes amid a changing political and regulatory landscape in Bangladesh. With a recent shift in government and a focus on revisiting existing infrastructure deals, the Adani agreement has come under scrutiny. The contract between Bangladesh and Adani Power, signed under the previous administration, has faced criticism due to its pricing terms, which some critics argue are more expensive than other power import options. Although no official move has been made to terminate the contract, Bangladesh’s interim administration has hinted at the possibility of renegotiating tariffs to address these concerns and ensure fairer pricing for the imported electricity​.

Dependence on Cross-Border Energy and Regional Implications

The power outage at the Godda plant highlights the broader challenge of cross-border energy reliance. Bangladesh’s rapid industrial growth and urban expansion have led to rising electricity demand, outpacing the development of local generation capacity. This reliance on imports from India provides an immediate solution but also increases vulnerability to external supply disruptions. Cross-border power projects like the Godda plant underscore the need for both countries to maintain stable, mutually beneficial energy policies. India, as a major energy supplier in the region, benefits from stable export revenues, while Bangladesh gains access to affordable electricity to fuel its economic growth.

Future Outlook and Mitigating Risks

To mitigate similar disruptions in the future, Bangladesh might consider diversifying its energy sources, increasing local renewable energy investments, or securing alternative import agreements with other neighboring countries. Furthermore, as Bangladesh explores a more diversified energy portfolio, renewable options like solar and wind energy, along with more gas and hydroelectric power, could reduce dependency on coal-based imports. A resilient and diversified energy supply system could provide more stability and reduce the economic impact of similar outages in the future.

In conclusion, the temporary shutdown of Adani Power’s Godda plant marks a significant challenge for Bangladesh’s energy landscape, amplifying the effects of energy dependency and highlighting the importance of cross-border energy cooperation. The ongoing discussions about tariff renegotiation reflect a move toward more equitable energy pricing for Bangladesh, potentially benefiting the country’s long-term energy security.