Adani Power refutes reports of costly power supply to Bangladesh

Adani Power has refuted reports in the Bangladeshi media that say that the company is supplying costly power to India's neighbouring country, CNBC TV 18 reports.

The report published yesterday said that sources in Adani asserted that it supplies the cheapest electricity among all imported coal-based plants providing power to Bangladesh.

They said thart according to Bangladesh Power Development Board's FY23 (July-June) report, Adani Power 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.

Adani Power also said that it continues to supply electricity, amid mounting dues, according to the schedule laid down by the Bangladesh Power Development Board from its 1,600 MW Ultra Super Critical power plant in Godda, Jharkhand, the CNBC TV 18 report said.

Fully commissioned in July 2023, Adani Power's Godda plant uses imported coal and supplies about 7-10 percent of Bangladesh's total power demand, the report siad. With an average monthly billing between $90-100 million, the company is seeking an urgent resolution to the pending dues to ensure the continued power supply.

Company sources have indicated that upfront payments are necessary to cover costs for lenders, coal suppliers, spares, other commodities, and plant operation-related services.

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.

However, these plants do not operate unless the coal is supplied by the Bangladesh government through a US Dollar Letter of Credit or upfront US Dollar payment.