Bangladesh Reduces Power Imports from Adani Power Amid Payment Dispute

Bangladesh has cut its power imports from Adani Power by 50% due to ongoing payment disputes and decreased winter energy demand.

On December 3, 2024, it was reported that Bangladesh has significantly reduced its power imports from Adani Power by 50%. This decision arises amid ongoing disputes regarding payment and a general decrease in demand for electricity during the winter season. The reduction in imports signifies the challenges faced by Adani Power in maintaining a stable contractual relationship with Bangladeshi authorities regarding energy supply.

Adani Power, part of the Adani Group, is one of India’s largest private power producers and has been supplying electricity to Bangladesh as part of a bilateral cooperation arrangement aimed at addressing the electricity needs of the neighboring country. The power import agreement is critical for Bangladesh’s energy landscape, especially in the context of its growing demand for electricity to support economic development. However, issues surrounding payments have caused strain in this relationship, prompting the recent decision to halve imports.

The reduction of power imports from Adani Power by Bangladesh illustrates significant underlying issues, primarily linked to payment disputes and seasonal demand fluctuations. This development not only affects the operations of Adani Power but also highlights the vulnerabilities in cross-border energy agreements, underscoring the need for more robust mechanisms to address such disputes in international energy trade.

Original Source: www.hindustantimes.com