Talks under way to cut Adani power cost, guarantee cannot be cancelled: power minister
Efforts are under way to reduce the cost of Adani's electricity, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud has said. A delegation has travelled to India and held talks with Adani, and the discussions are continuing, he said.
The minister said the power plant contracts were made with a sovereign guarantee; that guarantee cannot be cancelled, though the contracts can be renegotiated. Electricity is needed, he said, and if pushing too hard stopped the supply, protests would start again.
He made the remarks answering a question at the second session of the 5th Bangladesh Economic Conference 2026, organised by the daily Bonik Barta at a hotel in the capital on Saturday.
Iqbal Hasan Mahmud said regular fuel supplies from the Middle East were disrupted after the war began, and a fire at an LNG terminal created a gas crisis for industry. LNG buying began on the open market; LNG that cost $12 was most recently bought at $31, making LNG and oil-fired power cost the same. Production from oil-fired plants was then increased. He claimed power is now tolerable, there is no load shedding, and gas is being supplied.
Energy expert M Tamim said power problems occur mainly in the hot season and ease as temperatures fall, driven by the 'cooling load' of air conditioners and fans. Using efficient ACs and fans could cut demand by 3,000 megawatts, he said, and this must be ensured.
In reply, the minister said demand and load shedding rise in the heat. Extra demand persists even after midnight because of battery rickshaws; most connections are illegal, raising system loss, and drives have failed to stop it. Last summer's peak demand was 18,000 megawatts.
He added that plants sitting idle for lack of gas are being considered for running on LNG, which would add 4,000 megawatts and make next summer fairly manageable. Nuclear and solar power are coming, but without a smart grid risks remain; transmission line work is under way. Fuel from the Middle East is still not arriving, he said.
American Chamber president Syed Mohammad Kamal said he had spent the last two days in a village where there was 12 hours of load shedding, and that load shedding persists in villages. The government has been saying for eight months that overcoming the energy crisis will take two years; he demanded an energy roadmap.
On high LPG prices, the minister said LPG is imported by the private sector and priced by BERC, with no government role. Prices become unbearable for consumers passing through dealers, sub-dealers and retailers; a mobile app delivering directly to customers would stop middlemen profiting, he suggested.
Outlining plans to improve the energy situation, the minister said well drilling results are good and gas is being found. A fire has been burning at Inani in Cox's Bazar for more than 15 days, which may indicate gas there; exploration will be carried out and the fire is now being put out. Tendering for offshore oil and gas exploration is under way.
Noting that Phulbari holds abundant coal, he said it must be extracted by the open-pit method; with new technology, land can be farmed again after extraction. A power plant will be built at the mine mouth, cutting electricity costs. LNG is expensive and subsidies are rising, so leaving coal unused makes no sense. The prime minister has directed that the coal tender process be settled within three months.
Answering another question, the minister said: 'Germany still runs coal power, America is returning to coal. It is cheap, we have to do it. Advanced technology now exists and does not pollute the environment so much. There is no gain in raising unemployment in the name of the environment.'
