Bangladesh Raises Power Imports From India by 70% as Gas Shortages Strain Supply

India supplies more electricity as Bangladesh faces a summer squeeze

Bangladesh increased electricity imports from India by about 70 percent in the first seven months of 2025, with most of the additional supply coming from Adani Power's large plant in Jharkhand. Government data through July show imports supplied 15.4 percent of Bangladesh's electricity, up from 9.5 percent a year earlier, as domestic gas shortages and maintenance at coal plants restricted local generation.

Bangladesh also ran more plants using fuel oil to meet rising demand. The combination helped limit outages during the hottest months and the irrigation season, when homes need cooling and farmers need electricity to pump water. On some days in April, electricity from India supplied roughly 17 percent of the grid's needs.

Gas infrastructure and the electricity network both constrained the response. Low pressure in gas pipelines prevented many generating units from running at full output. Transmission bottlenecks limited how much electricity could move from available plants to the places that needed it.

Zahirul Islam, the Bangladesh Power Development Board member responsible for production, described the seasonal pressure on electricity supply:

April and May are summer and irrigation seasons, making electricity supply a major challenge during this time.

Islam said Bangladesh takes imports according to availability under its contracts and will request more when those terms and the system allow. As of September 11, 2025, the country's choices involved keeping electricity flowing while managing fuel shortages, import payments and the cost to households and businesses.

Natural gas supplied roughly two thirds of Bangladesh's electricity in the decade to 2020. Since then, the mix has shifted toward imported electricity and coal plants inside Bangladesh, driven by limits in gas infrastructure and efforts to contain costs.

How much electricity comes through the Indian connections?

Bangladesh can import up to 2,560 megawatts from India through its existing connections, according to grid data. A megawatt measures the rate at which electricity is supplied at a particular moment. The share of electricity supplied over several months measures something different: how much energy each source delivered throughout that period.

Adani's Godda plant in Jharkhand supplied the largest part of the additional imports. Electricity also continued to arrive through the Bheramara connection and from Tripura. Around midday on a weekday in April, operators recorded about 1,303 megawatts from Adani, roughly 907 megawatts through Bheramara and around 42 megawatts from Tripura.

During the evening peak, Adani's deliveries rose to about 1,360 to 1,366 megawatts. Bheramara supplied about 915 megawatts, while deliveries from Tripura increased slightly. These readings show how imports helped operators meet demand at different times of day.

Bheramara uses a high voltage direct current connection, a system for transferring large amounts of electricity between grids. Its rated capacity is 1,000 megawatts, but grid engineers say transfers rarely exceed about 960 megawatts because of operating constraints. The equipment's rated capacity and the amount operators can regularly deliver are therefore different.

Analysts at the Institute for Energy Economics and Financial Analysis said imports and fuel oil generation increased as temperatures rose and demand picked up from March. Government figures put the import share at 15.4 percent for January through July, while readings on some April days put it above 17 percent.

The change from 9.5 percent to 15.4 percent represents an increase of 5.9 percentage points in the import share. It also shows why the roughly 70 percent rise in imported electricity mattered: Indian supplies covered a larger portion of Bangladesh's needs during a period when several domestic sources were under pressure.

Why more LNG did not produce more gas electricity

Bangladesh imported 24 percent more liquefied natural gas through July than in the same period a year earlier, yet electricity generation from gas fell by about 1.2 percent. Official data show gas supplied about 43.9 percent of the electricity mix, down from 46.8 percent.

Liquefied natural gas, or LNG, is gas cooled into liquid form so it can be transported by ship. Buying more LNG increases the fuel entering the country, but power plants still need that gas delivered through pipelines at sufficient pressure. Officials said low pressure in parts of the network forced many turbines to operate below their rated output.

Factories and fertilizer plants draw on the same gas system. Bangladesh must decide how to divide limited supplies between electricity generation, industrial production and fertilizer manufacturing. A shortage affecting one use can therefore complicate decisions about the others.

Adeeba Aziz Khan, a director at Summit Power, discussed these choices at the Asia Pacific Petroleum Conference in Singapore. She said gas was needed for fertilizer while cheaper electricity could be obtained from other sources, including fuel oil. Describing the immediate constraints, Khan said:

There is a shortage of gas for electricity generation and evacuation problems.

Khan said a resurgence in generation using gas was unlikely soon because of fuel supply problems and grid bottlenecks. In this context, evacuation means moving electricity out of a power plant and through the transmission network to consumers.

LNG prices have been volatile since 2022. Cargoes bought on the spot market, rather than under longer contracts, can be expensive for a country facing a shortage of dollars. Bangladesh has to balance payments for LNG, pipeline gas and other imported fuels while keeping retail electricity tariffs acceptable. Imported electricity becomes attractive when contract prices are predictable and exposure to fuel supply risks is limited.

Coal maintenance leaves fuel oil plants filling gaps

Coal plants inside Bangladesh underwent maintenance during 2025, reducing the capacity available at times. Their share of the electricity mix fell to about 26.2 percent in the first seven months, from 30.1 percent a year earlier. That decline gave grid operators another reason to seek imported power when demand increased.

Maintenance was part of the pressure on coal generation. Outages and fuel logistics can also restrict output, particularly when deliveries slow or plant inventories need to be rebuilt. A plant may have substantial generating capacity but still depend on timely fuel deliveries and functioning equipment to use it.

Fuel oil plants supplied some of the missing electricity. Their share rose to about 12.6 percent through July, compared with 11.9 percent in the same period a year earlier. These units can start quickly, and many are close to areas with heavy electricity demand, making them useful during peak hours.

Fuel oil generation carries higher fuel bills and produces more emissions than gas or hydropower. Planners consequently treat it as a temporary bridge during shortages. The increased use of these plants helped maintain supply, while adding pressure to the cost of providing electricity.

Godda becomes central to keeping the grid supplied

Adani Power's Godda plant has become Bangladesh's single largest external source of electricity. Built in India's Jharkhand state to export power to Bangladesh under a long term contract, it feeds directly into the connection across the border.

During particularly tight weeks in 2025, Godda covered most of Bangladesh's import requirement. Its ability to deliver large volumes made it central to the response when gas plants could not run fully and domestic coal units were unavailable.

A senior Bangladesh Power Development Board official, discussing the decision to increase imports, described why operators turned to the plant:

To avoid blackouts they turned to Adani's energy, which was available in large volumes.

Electricity from Godda helped close an immediate supply gap, but the trading relationship also faced payment disputes. At the height of the dispute, Adani reduced output from the plant by roughly half for a period. Deliveries later recovered when payments resumed.

Unpaid bills and different prices complicate the trade

Bangladesh was behind on electricity payments in April, and officials said the government had moved to clear the dues. Adani Power's chief financial officer disclosed about $0.9 billion in unpaid bills as of early May, following a $1.2 billion payment in November. Dues were projected to reach about $1.3 billion by June.

The reported late payment charge was 2 percent per month, equivalent to roughly 27 percent per year when compounded. Compounding means charges accumulate on an amount that already includes earlier charges. For a utility dependent on subsidies, delayed payments can therefore increase the bill quickly.

Purchase prices also varied widely between suppliers. Figures for the 2023 to 2024 period put the Bangladesh Power Development Board's average payment to Adani at Tk 14.87 per kilowatt hour, compared with Tk 8.07 to NVVN, Tk 10.42 to Sembcorp Energy and Tk 9.28 to PTC India.

A kilowatt hour measures an amount of electricity used or supplied, which is why it is the unit used for these prices. For a domestic comparison, the coal plant at Matarbari agreed to sell electricity at Tk 8.45 per kilowatt hour. Adani's average price was Tk 6.80 above NVVN's and Tk 6.42 above that Matarbari benchmark.

Bangladesh's courts ordered a review of the Adani contract terms. The Power Development Board was also asked to reduce costs while keeping electricity available, with the aim of avoiding a tariff shock for households and industry. No date for completing the contract review was given.

Summer demand tests both generation and transmission

Bangladesh's electricity demand typically peaks from the middle of April through June, when temperatures are high and irrigation pumps run steadily. Grid operators estimated early summer peak demand at about 16,000 to 16,500 megawatts, against available production of roughly 15,500 megawatts.

Those figures imply a gap of about 500 to 1,000 megawatts. Imports and plants using fuel oil helped bridge it without widespread load shedding, the deliberate interruption of electricity to some users when the system cannot supply everyone at once.

Transmission limits shaped the response as well. Electricity has to travel from the plants with available fuel to the regions with the greatest demand. When those routes are constrained, additional generation cannot all reach consumers where it is needed.

Bheramara generally operates close to its upper transfer threshold but rarely delivers its full rated capacity for extended periods. More fuel and more generating capacity address part of Bangladesh's shortage; adequate transmission is also needed to move that electricity around the system.

Nepal opens a smaller hydropower route through India

Nepal began exporting 40 megawatts to Bangladesh on June 15, using India's 400 kilovolt Muzaffarpur to Baharampur to Bheramara corridor. The arrangement runs for five months, ending on November 15, at a price of 6.4 US cents per kilowatt hour.

The trade operates under an agreement among the Nepal Electricity Authority, the Bangladesh Power Development Board and India's NVVN. India provides the transit grid that allows electricity from Nepal to reach Bangladesh.

Nepal's energy minister described the export as a first step toward a larger market for the country's Himalayan hydropower:

Power exports have unlocked a 5,000 megawatt export market for the country.

Bangladesh has also signed a framework to import 1,000 megawatts of renewable electricity from India and a regular 40 megawatt supply from Nepal, with the Nepalese electricity passing through India. The 40 megawatt flow is small beside Bangladesh's peak demand of 16,000 to 16,500 megawatts, but it adds a hydropower source to the mix.

India already trades electricity with Bhutan, imports seasonal surpluses from Nepal and supplies Bangladesh and Myanmar. Officials in New Delhi have also discussed a subsea electricity connection to Sri Lanka, which would widen the regional electricity pool over time.

The main dates in Bangladesh's recent supply changes and the next scheduled developments are:

• November: Bangladesh made a $1.2 billion payment before Adani's disclosure of unpaid bills in early May.
• March 2025 onward: Electricity demand picked up, followed by greater use of imports and fuel oil plants.
• April and May 2025: Summer heat and irrigation needs placed additional pressure on supply.
• June 15, 2025: Nepal began exporting 40 megawatts to Bangladesh through India.
• July 2025: The seven month data showed imports from India up about 70 percent.
• November 15, 2025: Nepal's five month electricity export period is scheduled to end.
• Late 2025: Rooppur's first nuclear unit is scheduled to add 1,200 megawatts.

Factories and households face the cost of reliability

Bangladesh's garment industry depends on steady electricity to meet orders. Continued imports help keep factories operating during periods of tight supply. Many larger mills have installed their own generators to cover frequent grid shortfalls, but producing electricity themselves raises costs and weakens competitiveness.

Small and cottage industries have fewer alternatives when load shedding returns. Their ability to maintain production depends more directly on the electricity supplied by the grid.

Bangladesh's foreign reserves fell sharply from 2022 to 2024, making imported coal and gas harder to pay for. Pressure on foreign currency has steered planners toward electricity imports that can be settled on clearer contractual terms and toward rationing domestic gas for fertilizer production and industry.

Subsidies protect households from the full cost of generation. The difference between utility costs and retail tariffs nevertheless places pressure on public finances. Keeping supply reliable and holding down prices therefore involves decisions about fuel purchases, supplier contracts, gas allocation and government support.

New capacity and a different electricity mix

The first unit of the Rooppur nuclear plant is scheduled to add 1,200 megawatts by late 2025. That addition could ease pressure if it arrives on time. Increasing output from Matarbari and other coal units could also provide more electricity as fuel supplies improve.

Grid reinforcements, particularly greater transfer capacity at the western connections, would help operators move electricity more effectively when available plants are far from the areas with the heaviest demand. Improving the network addresses the transmission problems described by power producers and grid operators.

Bangladesh has set a target for at least 50 percent of electricity to come from renewable sources by 2050, starting from a small share today. Reaching it would require sustained imports of hydropower from India, Nepal and Bhutan, alongside more domestic solar and wind generation.

Independent analysts expect the LNG market to remain volatile, supporting efforts to reduce exposure to spot purchases over time. Imported electricity contracts can also be reviewed to lower penalties and unit prices while protecting continuity of supply.

Bangladesh's immediate experience shows why those decisions matter together. Imported electricity and fuel oil plants helped cover shortages in 2025, while low gas pressure, coal maintenance, transmission limits and unpaid bills continued to shape how much power could be delivered and what it cost.

Key Points

• Electricity imports from India rose about 70 percent in January through July 2025, supplying 15.4 percent of the mix compared with 9.5 percent a year earlier.
• Adani's Godda plant provided most of the extra imports, with evening deliveries in April reaching about 1,360 to 1,366 megawatts.
• Gas generation fell about 1.2 percent despite a 24 percent increase in LNG imports, as low pipeline pressure restricted output.
• Domestic coal's share fell to 26.2 percent, while fuel oil's share rose to 12.6 percent.
• Early summer demand of 16,000 to 16,500 megawatts exceeded available production of about 15,500 megawatts.
• Unpaid bills, late payment charges and differing purchase prices added pressure to the electricity trade. Courts ordered a review of Adani's contract.
• Nepal began supplying 40 megawatts through India on June 15 at 6.4 US cents per kilowatt hour, with the export period ending November 15.
• Rooppur's first nuclear unit is scheduled to add 1,200 megawatts in late 2025. Bangladesh's renewable electricity target is at least 50 percent by 2050.