Bangladesh: Analyzing Hasina era Adani Power Deal

[c14-Isotope]

"It is worth noting that Bangladesh currently operates one of the largest liquid fuel-based power generation plants in the Indian subcontinent. The combined installed capacity of heavy fuel oil (HFO) and high-speed diesel (HSD) plants in the country exceed 7,600 MW, with HFO-based plants alone accounting for around 6,329 MW. According to the Bangladesh Power Development Board's (BPDB) annual report for the 2021-22 financial year, the total tariff of HFO-based plants is approximately BDT 22.10/kWh (USC 21/KWh), while the total tariff of HSD-based power plants is around BDT 154.11/kWh (USC 149/KWh)."

Adani Group's latest power plant in Jharkhand to bring down electricity prices in Bangladesh - BusinessToday

The electricity supplied from Godda is expected to significantly improve the power situation in Bangladesh by replacing expensive power generated from liquid fuel

www.businesstoday.in

Not needed, not needed reeeee

 

[UKBengali]

"It is worth noting that Bangladesh currently operates one of the largest liquid fuel-based power generation plants in the Indian subcontinent. The combined installed capacity of heavy fuel oil (HFO) and high-speed diesel (HSD) plants in the country exceed 7,600 MW, with HFO-based plants alone accounting for around 6,329 MW. According to the Bangladesh Power Development Board's (BPDB) annual report for the 2021-22 financial year, the total tariff of HFO-based plants is approximately BDT 22.10/kWh (USC 21/KWh), while the total tariff of HSD-based power plants is around BDT 154.11/kWh (USC 149/KWh)."

Adani Group's latest power plant in Jharkhand to bring down electricity prices in Bangladesh - BusinessToday

The electricity supplied from Godda is expected to significantly improve the power situation in Bangladesh by replacing expensive power generated from liquid fuel

www.businesstoday.in

Not needed, not needed reeeee

Adani has already decommissioned a few of these expensive and dirty power stations due to Adani.

BD would be paying more if Adani did not come online.

At least till Roopur comes online next year, Adani is a lifesaver.

 

[c14-Isotope]

Adani has already decommissioned a few of these expensive and dirty power stations.

BD would be paying more if Adani did not come online.

At least till Roopur comes online next year, Adani is a lifesaver.

Rooppur will be expensive as well, the charges will remain high till the time you have to pay back the loan.

Don't be surprised if its generation cost turns out to be even higher than Adani's plant.

 

[UKBengali]

Rooppur will be expensive as well, the charges will remain high till the time you have to pack back the loan.

Don't be surprised if its generation cost turns out to be even higher than Adani's plant.

It will be cheaper over the whole lifecycle of the plant.

But while BD is making repayments for first half of lifetime, cost will be similar but significantly cheaper for last half. The plant has a lifetime of 60 years. Remember coal generation is only cheap if you use your own coal.

Adani at 12 Taka per kWh is a decent deal for BD as all the headache of building, running, land loss and pollution is on Adani/India.

 

[c14-Isotope]

It will be cheaper over the whole lifecycle of the plant.

But while BD is making repayments for first half of lifetime, cost will be similar but significantly cheaper for last half. The plant has a lifetime of 60 years. Remember coal generation is only cheap if you use your own coal.

Adani at 12 Taka per kWh is a decent deal for BD as all the headache of building, running, land loss and pollution is on Adani/India.

Yes, it will be cheaper in the long run after the loan is repaid. Likewise, tariff from Adani's plant will also reduce after 7 years.

 

[UKBengali]

Yes, it will be cheaper in the long run after the loan is repaid. Likewise, tariff from Adani's plant will also reduce after 7 years.

Are you able to give us some details of this please?

I forgot to add that the lifecycle of Roopur can also be extended to 80 years with some work towards the end of this current rated 60 year lifespan.

 

[c14-Isotope]

Are you able to give us some details of this please?

I forgot to add that the lifecycle of Roopur can also be extended to 80 years with some work towards the end of this current rated 60 year lifespan.

"According to the agreement, all power plants have a capacity charge that must be paid regardless of whether they produce electricity or not. This charge remains high during the initial years and it gradually decreases.

In Adani’s case, the charge remains constant for the first seven years of the contract before tapering off. Cancelling the contract at this stage would result in financial losses for the PDB."

Adani cashing in on a ‘one-sided’ deal

Moreover, within a week of Sheikh Hasina’s resignation last August, Adani established an alternative market for selling electricity by amending the contract in India

en.prothomalo.com

 

[c14-Isotope]

Do you know costs of Adani’s Godda Power project?

The dustup over the $2 billion Adani Power project in Jharkhand – which is meant to supply power to Bangladesh – revolves mostly around its costs and whether Dhaka will pay extra cash for the...

timesofindia.indiatimes.com

 

[UKBengali]

Do you know costs of Adani’s Godda Power project?

The dustup over the $2 billion Adani Power project in Jharkhand – which is meant to supply power to Bangladesh – revolves mostly around its costs and whether Dhaka will pay extra cash for the...

timesofindia.indiatimes.com

I think the deal is probably a good one as the IG seems to have no issues and is accelerating payments.

No idea why Adani felt the need to halve its power supply as new BD government was paying the debt off and paying for current power at the same time.

Just before the reduction of supply BD government signalled its intention to pay 170 million this month from 100 milion last month.

Hasina was paying as little as 20-30 million US dollars a month by comparison.

It seems like Adani wanted out but BD still wanted in!

 

[uksyl]

I think the deal is probably a good one as the IG seems to have no issues and is accelerating payments.

No idea why Adani felt the need to halve its power supply as new BD government was paying the debt off and paying for current power at the same time.

Just before the reduction of supply BD government signalled its intention to pay 170 million this month from 100 milion last month.

Hasina was paying as little as 20-30 million US dollars a month by comparison.

It seems like Adani wanted out but BD still wanted in!

The wider significance of this would be then that the IG is prioritising Bangladeshi development ahead of any nonsensical and unproductive confrontation with India. For the IG it seems 'Bangladesh first', thus if we extend this to other spheres of Bangladesh-India relations I see a healthy relationship. Not one like when BAL wasin charge whereby they didn't spend properly on our airforce thus rendering us at a disadvantage with Myanmar, but not a gratuitously antagonistic one. But a sensible, relatively cordial productive relationship between two sovereign nations who realise good neighbourly relations are a must to uplift both of our respective populations out of poverty.

 

[LeonBlack08]

In that case why is BD unhappy that Adani has cut power by 50%. You should be happy and you can run your coal power plants at full capacity.

Continuation without disruption.

3 brand new coal power plants each with 1.3 GW capacity are operating at less than 100% because instead of securing long term coal import contracts with Credit payment facility to operate the local newly built plants - Hasina administration sought to outsource it to Adani.

Now even if the interim government secures a coal deal and then import them to run the local power plants at max capacity - it will be several months before a contract is signed and then coal consignments reach all three power plants and start power generation.

What is Bangladesh supposed to do in the interim? Not use Adani's power and pay capacity charge instead?

 

[LeonBlack08]

I think the deal is probably a good one as the IG seems to have no issues and is accelerating payments.

No idea why Adani felt the need to halve its power supply as new BD government was paying the debt off and paying for current power at the same time.

Just before the reduction of supply BD government signalled its intention to pay 170 million this month from 100 milion last month.

Hasina was paying as little as 20-30 million US dollars a month by comparison.

It seems like Adani wanted out but BD still wanted in!

Please read my post above.

The interim government has no choice but to continue with the current arrangement because of the circumstances we have been forced in.

 

[LeonBlack08]

The article says that Bangladesh wishes to import 1.5GW from Bhutan. It does not say that Bhutan has 1.5 GW available for export to Bangladesh. Bhutan hydro generation capacity is 2.3 GW. Most of it is already being committed to India. This electricity is available only in summer months. In fact India exports electricity to Bhutan in winter. The net import/export of electricity between India and Bhutan is almost 0. Bhutan has just started exporting more than it imports. Previously it was electricity deficient. It would import more and export less.

Neither Tripura, Bhutan or Nepal has electricity to spare for you to say that there is no need of the Adani power.

Clearly you missed my disclaimer to the individual I was replying to.

Open another thread if you want to discuss more because I won't discuss this issue here.

 

[LeonBlack08]

"It is worth noting that Bangladesh currently operates one of the largest liquid fuel-based power generation plants in the Indian subcontinent. The combined installed capacity of heavy fuel oil (HFO) and high-speed diesel (HSD) plants in the country exceed 7,600 MW, with HFO-based plants alone accounting for around 6,329 MW. According to the Bangladesh Power Development Board's (BPDB) annual report for the 2021-22 financial year, the total tariff of HFO-based plants is approximately BDT 22.10/kWh (USC 21/KWh), while the total tariff of HSD-based power plants is around BDT 154.11/kWh (USC 149/KWh)."

Adani Group's latest power plant in Jharkhand to bring down electricity prices in Bangladesh - BusinessToday

The electricity supplied from Godda is expected to significantly improve the power situation in Bangladesh by replacing expensive power generated from liquid fuel

www.businesstoday.in

Not needed, not needed reeeee

Yes continue with your cost comparison disingenuously while conveniently ignore the points raised about how 3 newly built local coal power plants all with 1.3 GW each were forced to operate at significantly less than 100% (34% and 60% and not operating) despite 2 of them coming online a couple of years before Adani.

Refer to my post - Post in thread 'Bangladesh: Analyzing Hasina era Adani Power Deal' https://defencepk.com/forums/thread...hasina-era-adani-power-deal.15264/post-417642

Coal import hindered by forex crunch couldn't have been the primary issue, because we seem to have been operating the gasoline based plants with more expensive fuel than coal.

So why was Adani import was prioritized than operating own newly built equivalent coal plants at max capacity? Why didn't Hasina admin replace all the more expensive diesel powered plants by operating the available coal based ones at max capacity?

Corruption or incompetence? You all out here seem so determined to defend Hasina, perhaps you all have the answers.

But Don't bother replying. I know you will keep on going back in circles with your cost comparison. Spare us both the time and effort.

 

[UKBengali]

Please read my post above.

The interim government has no choice but to continue with the current arrangement because of the circumstances we have been forced in.

I am just giving you my opinion.

We still cannot judge the merits of the deal as the details are not out yet.