Bangladesh Amplifies Power Imports Amid Energy Challenges

Bangladesh is intensifying its power imports from India and increasing output from fuel oil-fired plants to address surging electricity demand driven by gas supply limitations and coal plant maintenance, according to industry officials and analysts.

Power imports, particularly from a coal-fired plant managed by Adani Power in eastern India, surged 70% over the seven months leading to July, effectively meeting most of the growing demand, government data indicates. Although natural gas constituted two-thirds of Bangladesh's power demand until 2020, the country has ramped up power imports and local coal-fired generation to cope with gas infrastructure challenges and reduce costs.

Adeeba Aziz Khan, a director at Bangladesh's Summit Power, emphasized the cost-effectiveness of cheap electricity obtained from diverse sources, including fuel oil. The shortage of gas and evacuation issues have hampered gas-fired generation, with many plants underperforming due to pressure-related technical problems, whereas coal-fired outputs have been affected by maintenance downtimes, according to a senior Bangladesh Power Development Board (BPDB) official.

(With inputs from agencies.)