Adani says it supplies electricity to Bangladesh at cheapest rate

Adani Power, an Indian multinational power and energy company, says it supplies electricity to Bangladesh at the cheapest rate among all other imported coal-based plants, according to a CNBC report.

In response to claims of supplying costly power to Bangladesh, the company pointed out the comparative power costs detailed in the Bangladesh Power Development Board’s report for the 2022-2023 fiscal year.

The company sources stated that it supplies electricity to Bangladesh at a rate of Tk 14.02 per unit, compared to Tk 16.02 per unit from the Payra Power Plant and Tk 14.12 per unit from the Rampal Power Plant.

The company also referenced the average power prices over the last 12 months, as per the merit order dispatch data.

The average per unit price of electricity provided by Adani Power in last 12 months was Tk 11.89. Meanwhile, the average price of Matarbari Power Plant in the period was Tk 13.36, Payra’s price was Tk 12.00, and Rampal’s price was Tk 13.57 per unit. The cost per unit includes capacity charge, fuel cost and variable cost.

Fully commissioned in July 2023, Adani Power's Godda plant uses imported coal and supplies about 7 to 10 per cent of Bangladesh’s total power demand.

As per company sources, Bangladesh currently has long-term Power Purchase Agreements (PPAs) with four other imported coal-based power generators—Payra, Rampal, Matarbari, and Barisal Electric Power.