Key facts
- Bangladesh is facing significant power outages due to government payment delays to power producers.
- A major coal-fired power plant operated by SS Power-1 is at risk of shutdown due to unpaid bills and stranded coal shipments.
- The country is experiencing daily intentional power cuts ranging from 600 MW to 3,350 MW.
- Urban areas, including Dhaka, will see increased load shedding to balance supply with rural areas.
- Fuel shortages are affecting 72 out of 143 power plants, contributing to a significant electricity shortfall.
Bangladesh is grappling with deepening power outages, with daily intentional cuts escalating to as much as 3,350 MW, significantly impacting rural areas and garment factories. The crisis stems from a combination of delayed government payments to power producers and fuel shortages, particularly coal, for critical plants.
SS Power-1, which operates a crucial 1,200 MW coal-fired power plant in Banshkhali, has warned of potential shutdowns due to over Tk45bn (£330m) in unpaid dues. Coal shipments are reportedly stranded at sea, incurring demurrage charges, as the company awaits payment guarantees. Energy analysts caution that any disruption to this plant could severely worsen load-shedding and strain the power system ahead of peak summer demand.
Despite assurances from the Bangladesh Power Development Board (BPDB) chair, Md Rezaul Karim, that partial payments are being made and operations are being coordinated, industry insiders express concern over continued uncertainty, which could deter investors. The government has decided to increase load shedding in urban areas, including a trial of 110 MW in Dhaka, to ensure more equitable distribution of power and support irrigation in rural areas, a decision reportedly made on Prime Minister Tarique Rahman's instruction.
Data indicates a worsening power situation, with a shortfall of 2,249 MW recorded recently. Seventy-two out of 143 power plants are experiencing fuel shortages. The situation has been further complicated by technical issues at India's Adani power plant and reduced imports from India. Several coal-fired plants are already operating below capacity due to these issues.