Adani unit shutdown worsens load shedding

A technical shutdown at an Adani Group power plant in India has worsened electricity shortages in Bangladesh, as soaring temperatures and rising demand strain an already fragile energy system.

The Bangladesh Power Development Board (BPDB) has been struggling to maintain supply amid a persistent fuel crisis, with load shedding exceeding 2,000MW at times in recent weeks. 

The situation worsened after one unit at the Jharkhand-based coal-fired plant – dedicated to supplying power to Bangladesh – was taken offline late Tuesday.

Officials said engineers detected a warning signal from a bearing inside the unit and shut it down immediately to prevent a major failure. BPDB member (generation) Md Zahurul Islam said the unit may remain out of operation for several days.

The 1,600MW facility, comprising two 800MW units, had been supplying around 1,500MW in recent weeks. With one unit offline, output has fallen to roughly 750MW-770MW, sharply reducing cross-border electricity supply.

The disruption comes at a time when Bangladesh’s power sector is already under pressure from global fuel market volatility. Shortages of coal, natural gas, and oil – exacerbated by geopolitical tensions—have constrained domestic generation capacity.

On Wednesday, peak electricity demand reached approximately 15,690MW, while supply shortfalls forced load shedding of nearly 2,500MW. Officials warned that outages could intensify during evening peak hours as temperatures continue to rise.

To mitigate the deficit, BPDB has increased reliance on furnace oil-based power plants and is considering deploying diesel-fired units, despite significantly higher generation costs.

According to data from the Power Grid Company of Bangladesh (PGCB), several of the country’s 136 power plants remain offline due to gas shortages, fuel constraints, and maintenance work. 

While Bangladesh has an installed gas-based generation capacity of about 12,200MW, actual output has dropped to nearly 5,200MW due to limited gas supply. Solar plants, which account for 17 facilities, are unable to contribute after sunset, further tightening supply.

Overall electricity generation currently ranges between 13,000MW and 14,000MW, against demand that has surpassed 16,000MW with the onset of summer, making widespread load shedding unavoidable.

The situation is further complicated by financial disputes between BPDB and Adani Power. The Indian firm has recently urged Dhaka to clear outstanding dues, warning that delays could disrupt future supply.

Differences over coal pricing have also emerged, with Adani invoicing at higher rates while BPDB seeks to settle payments based on prevailing market prices. 

The 2017 power purchase agreement between the two sides is under legal review following allegations of irregularities, with international legal experts engaged in the process.

Analysts said the convergence of technical disruptions, fuel constraints and contractual uncertainties underscores Bangladesh’s vulnerability to external energy shocks, raising concerns over supply stability in the months ahead.