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HomebusinessBangladesh Seeks Cancellation of All Electricity Agreements With Adani

Bangladesh Seeks Cancellation of All Electricity Agreements With Adani

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A formal legal notice has been dispatched to the relevant authorities, demanding the annulment of all electricity contracts with India’s Adani Group.

On Wednesday, Barrister M Kaiyum urged for an “immediate reassessment or total annulment of the inequitable, unilateral agreements.”

The notice stipulates that if a reassessment of the agreements is not commenced within three days, a writ petition will be submitted to the High Court.

Additionally, it requests the establishment of a review committee consisting of energy and legal specialists to produce a comprehensive report.

The chairman of the Bangladesh Power Development Board and the secretary of the energy ministry have been allotted three days to address the notice.

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Following the directives of the Power Division, a swift power purchase agreement was executed with Adani in 2017, at a time when no coal-based power plants were operational in Bangladesh.

One of these agreements is a 25-year power purchase contract established with Adani in 2017.

Notably, Bangladesh’s electricity supply is managed by a national grid with an installed capacity of 25,700 MW as of 2022, primarily sourced from natural gas.

The Bangladesh Power Development Board (BPDB) plays a key role in generation and distribution, alongside independent power producers and rural cooperatives.

Despite achieving 100% access to electricity, challenges persist, including high system losses, erratic supply, and reliance on fossil fuels.

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The government aims to diversify energy sources, increase renewable energy contributions, and enhance infrastructure to meet projected demand of 50,000 MW by 2041.