Adani Power has sharply increased electricity exports to Bangladesh despite strained diplomatic relations between the two countries, reinforcing its role as a key power supplier at a time when Bangladesh is grappling with gas shortages and rising electricity demand. The higher supplies from Adani’s Godda coal-fired power plant have lifted India’s share in Bangladesh’s power mix to record levels, underscoring how energy trade continues to expand even as bilateral ties face growing tensions.
Adani Power has significantly increased electricity exports to Bangladesh, even as diplomatic relations between the two neighbours have deteriorated and a Bangladesh government-appointed panel has flagged concerns over pricing. The additional supply is helping Bangladesh manage a growing power shortfall caused mainly by declining natural gas availability.
Exports from Adani Power’s Godda coal-fired power plant in Jharkhand rose nearly 38% year-on-year to about 2.25 billion kilowatt-hours (kWh) in the three months through December, according to Indian and Bangladeshi government data. This pushed Indian electricity exports to a record 15.6% of Bangladesh’s power mix for the year, up from 12% in 2024. Adani began supplying power to Bangladesh in early 2023.
Electricity trade between the two countries has continued to expand despite souring diplomatic ties, with both governments suspending visa services and summoning envoys over security concerns at diplomatic missions.
Bangladesh is increasingly relying on power imports to ease shortages driven by a decline in natural gas supply, its primary fuel for electricity generation. The country is also preparing for an expected 6% to 7% rise in electricity demand in 2026, Bangladesh Power Development Board Chairman Rezaul Karim told Reuters.
To offset gas shortages, Bangladesh plans to boost coal imports and ramp up domestic coal-fired generation. Coal imports jumped 35% to a record 17.34 million metric tonnes in 2025, according to data from analytics firm Kpler. Industry experts attribute the gas shortage to rapidly declining local production and transmission constraints that have limited the use of liquefied natural gas.
As a result, the share of gas-fired generation in Bangladesh’s energy mix fell to a record low of 42.6% last year, down from nearly two-thirds over the decade through 2024, government data showed.
Adani Power helped fill this gap by supplying a record 8.63 billion kWh of electricity to Bangladesh in 2025, accounting for 8.2% of the total supply. Imports from other Indian companies rose marginally to 7.92 million kWh, according to Bangladesh power grid data. During the first 27 days of January, Adani accounted for about 10% of Bangladesh’s total electricity supply.
“Adani Electricity is still cheaper than oil-fired electricity. Because of shortages, Bangladesh has to use oil-fired power plants,” said Ijaz Hossain, an independent Dhaka-based energy expert.
