Despite the fact that diplomatic relations between India and Bangladesh are going through one of their most tense moments in years, electricity supply between the two countries is not only continuing, but intensifying. At the center of this exchange is Adani Power, whose coal plant in Godda, in the Indian state of Jharkhand, has increased its export volume to the neighboring country by almost 38% in the last three months of 2025.
According to data from the governments of both countries, Adani Power supplied 8.63 billion kilowatt-hours (kWh) to Bangladesh during the year, representing 8.2% of the total electricity supply in the country. In January 2026 alone, the company already accounts for approximately 10% of the country’s energy supply.
Energy situation in Bangladesh
Bangladesh is facing an accelerated decline in its local natural gas production, which has led to a historic drop in its share of the energy mix, falling to 42.6% by 2025. Bangladesh Energy Development Board chairman Rezaul Karim warned that electricity demand will grow by 6% to 7% by 2026, an additional strain on an already stressed energy system.
Infrastructure limitations to process liquefied natural gas liquefied natural gas and the fall in domestic production have forced the country to increase its coal imports by 35%, reaching 17.34 million metric tons in 2025, according to data from the analysis firm Kpler. This is why electricity imports from India have been key, covering 15.6% of the country’ s energy total, up from 12% the previous year.
Cost competitive with oil
Although a Bangladeshi government panel has said that Adani’s supply is “expensive,” local experts stress the opposite.
Adani electricity is still cheaper than that generated from oil. Due to shortages, Bangladesh is forced to use oil-fired power plants.
Ijaz Hossain, an independent energy specialist based in Dhaka.
The low relative cost of oil has made Adani Power an efficient alternative to sustain the country’s power grid in the midst of a supply crisis.
Future prospects
Despite diplomatic disagreements, the flow of energy from India, led by Adani Power, will continue to play a fundamental role in the short and medium term. Bangladesh’s growing dependence on external sources, coupled with the sustained increase in demand, projects a bilateral relationship increasingly conditioned by energy needs, beyond the political.
Source: Reuters