The government’s plan to fully utilise the capacity of coal-fired power plants—amounting to approximately 7,000 MW from both imported and local sources— upcoming Ramadan and hot Summer faces uncertainty due to coal procurement challenges and payment disputes.
The full utilization of coal-fired power production remains uncertain as four major power units have gone into maintenance, while the remaining units suffer from a financial crisis, making coal procurement difficult, officials said.
The four power plants undergoing major maintenance include Adani Power’s Unit-2, a unit of S Alam’s Banshkhali Power Plant, a unit of Matarbari Power Plant, and a unit of Payra Power Plant.
Power Development Board (PDB) Chairman Engr. Rezaul Karim acknowledged the crisis and expressed hope for a quick resolution.
He stated that he has met with plant authorities, including the BPDB-NTPC joint venture, to ensure full operation during Ramadan and the hot summer season.
Adani Power Plant Issues
On Monday, the Bangladesh Power Development Board (BPDB) sought 100% utilization of Adani’s 1,496 MW Jharkhand electricity. Following this news, Adani Power’s stock prices rose by 5% on Wednesday.
However, on Tuesday, Unit-2 of the plant attempted to resume power supply but failed due to a turbine fault. An Adani Power official told Just Energy News on condition of anonymity that a technical team from General Electric (GE) is working on maintenance, but they cannot confirm when operations will resume. The unit has faced similar disruptions previously.
In addition, Adani Power is locked in a dispute over unpaid bills amounting to $750 million. The company has warned that overdue payments of $845 million must be settled by June 2025 to avoid late payment surcharges under the Power Purchase Agreement (PPA). After issuing a formal notice, Adani received a partial payment of $85 million.
Rampal Power Plant Crisis
One unit of the 1,320 MW Rampal Power Plant, with a capacity of 660 MW, remains inoperative due to coal shortages.
A plant official stated that they are running one unit at full capacity and expect to restart the other after receiving a coal shipment of 60,000 metric tonnes in 15 days.
The plant is yet to receive overdue payments totaling Tk 4,000 crore. However, NTPC, the joint venture partner, has agreed to continue operations despite the payment dispute.
Other Power Plant Challenges
One unit of the 1,200 MW Matarbari Power Plant is shut down due to technical problems.
A unit of S Alam’s Banshkhali Power Plant is facing a condensate unit failure. The plant is also entangled in a dispute with BPDB over Tk 1,900 crore in unpaid bills.
The 1,320 MW RPCL-NORENCO Power Plant is currently undergoing test runs and is expected to start producing 660 MW soon.
Power Demand During Ramadan and Summer
Bangladesh is expected to experience load shedding ranging from 700 MW to 1,400 MW during Ramadan and the peak summer months, according to Power, Energy, and Mineral Resources Adviser Muhammad Fauzul Kabir Khan.
The estimated electricity demand for summer has been set at 18,000 MW, while Ramadan demand is projected at 15,700 MW. The adviser assured that authorities would work to keep power cuts minimal during Ramadan.
Alternative Power Supply Plans
Currently, 900 million cubic feet of gas is supplied for power generation, with plans to increase it to 1,200 million cubic feet during Ramadan and maintain 1,100 million cubic feet from April to September.
However, officials warn that imported LNG supplies are uncertain due to a financial crisis. The Energy and Mineral Resources Division has cut LNG import plans from 115 cargoes to 90 cargoes for the summer.
This could reduce gas-fired electricity generation. An official stated that HFO-based plants with a capacity of 5,584 MW remain the only viable alternative.
Private power producers have expressed concern over delayed payments. BIPPA President David Hasnat stated that they have received only Tk 1,200 crore out of Tk 9,000 crore in overdue payments for HFO plants, making operations difficult.
He also noted that a reduction in fuel import incentives from 9% to 5% further discourages private companies from importing fuel independently.
To address the crisis, the Ministry of Power, Energy, and Mineral Resources has requested $4 billion from the Finance Ministry. In response, the Finance Ministry has assured Tk 33,000 crore ($2.71 billion) in support.
Policymaker Perspectives
The power and energy adviser attributed the expected load shedding not just to financial constraints but also to excessive electricity consumption, particularly from air conditioners. Cooling loads account for 6,000 MW in summer, and setting air conditioners to 25–26°C could save up to 3,000 MW.
He assured that load shedding will be distributed equally between urban and rural areas, starting with Dhaka.
While Bangladesh’s official power generation capacity is 26,000 MW, he noted that actual reliable capacity is over 18,000 MW.
Power Supply Disruptions
Industries in Gazipur and Savar experienced three-hour power outages on Thursday, while rural areas are facing worsening electricity shortages due to rising temperatures.
Power distribution officials in Gazipur have advised industrialists to arrange diesel for captive power generation as an alternative solution.
Govt’s plan to maximise coal-fired power generation faces uncertainty
