Newest power project by Adani Group to reduce electricity costs in Bangladesh is located in Jharkhand.

10 Apr 2023

The electricity supplied from Godda is expected to significantly improve the power situation in Bangladesh by replacing expensive power generated from liquid fuel Adani Power Limited (APL) has announced the commissioning of its first 800 MW ultra-super-critical thermal power generation unit at Godda in the Jharkhand district of India. The company has also started supplying Bangladesh with 748 MW of power from this plant. The electricity supplied from Godda is expected to significantly improve the power situation in Bangladesh by replacing expensive power generated from liquid fuel, thus bringing down the average cost of power purchased.

The Godda Power Plant is a strategic asset in India-Bangladesh’s long-standing relationship,” said Mr SB Khyalia, CEO, Adani Power Limited. “It will ease the power supply in Bangladesh, making its industries and ecosystem more competitive. It is going to be the most efficient and environment-friendly thermal power plant installed in India and entire South-East region and also one of the best in class in the world. It is the first power plant in the country, which has started its operations from Day One with 100% Flue Gas Desulphurization (FGD), SCR and Zero Water Discharge.”

The power plant is a part of the Adani Group's plan to generate 10,000 MW of power in Jharkhand, which is located in eastern India. The project has been in the works for several years and is expected to contribute to the development of the region by creating jobs and promoting economic growth.

In November 2017, Bangladesh Power Development Board (BPDB) executed a long-term Power Purchase Agreement (PPA) with APL’s wholly-owned subsidiary Adani Power Jharkhand Limited (APJL) to procure 1,496 MW net capacity power from 2X800 MW ultra-supercritical power project at Godda.

It is worth noting that Bangladesh currently operates one of the largest liquid fuel-based power generation plants in the Indian subcontinent. The combined installed capacity of heavy fuel oil (HFO) and high-speed diesel (HSD) plants in the country exceed 7,600 MW, with HFO-based plants alone accounting for around 6,329 MW. According to the Bangladesh Power Development Board's (BPDB) annual report for the 2021-22 financial year, the total tariff of HFO-based plants is approximately BDT 22.10/kWh (USC 21/KWh), while the total tariff of HSD-based power plants is around BDT 154.11/kWh (USC 149/KWh).

In comparison, the energy cost of power generated by the newly commissioned Godda Power Plant in India is estimated to be around 9 cents/kWh, making it a far more cost-effective source of electricity for Bangladesh. While the country has existing long-term power purchase agreement (PPA) ties with three other imported coal-based generators, the total tariff of the Godda TPP is competitive compared to its peers. The plant's use of ultra-supercritical technology and advanced techniques for controlling emissions and coal and water consumption also makes it a more environmentally friendly option.