Zakir Hossain from Dhaka
Bangladesh is ramping up power imports from India and output from fuel oil-fired plants to meet surging electricity demand, as gas shortages and coal plant maintenance curb local generation.
Imports, mainly from Adani Power’s coal-fired plant in eastern India, jumped 70% in the seven months to July, meeting most of the additional demand, official data show.
Natural gas supplied two-thirds of Bangladesh’s power needs in the decade to 2020, but reliance is now shifting. “It’s about cost effectiveness, and gas is required for the fertiliser industry, whereas cheap electricity can be received from other sources, including fuel oil,” said Adeeba Aziz Khan, director of Summit Power, which runs a dozen gas and oil-based plants. “There is a shortage of gas for electricity generation and evacuation problems,” she told the APPEC conference, ruling out a revival of gas-fired output “in the foreseeable future.”
A senior Bangladesh Power Development Board (BPDB) official said many gas plants are running below capacity due to pressure-related issues, while coal output dipped on maintenance outages. “The government didn’t have many choices. To avoid blackouts, they turned to imports, and Adani’s power was available in large volume,” the official said. BPDB declined comment.
Government data show the import share rose to 15.4% from 9.5% a year earlier, while oil-fired power edged up to 12.6% from 11.9%. Gas fell to 43.9% from 46.8%, and coal slid to 26.2% from 30.1%.
“When power demand started increasing since March, they had to increase imports and fuel oil-based generation,” said Shafiqul Alam of the Institute for Energy Economics and Financial Analysis.
Bangladesh also hiked LNG imports 24% in the seven months to July, Kpler data show, though gas-fired power still fell 1.2%.