April 25, 2018 Read More →

Adani Builds Coal-Fired Power Plant in India to Send Energy to Bangladesh

The Guardian:

Godda, in the Indian state of Jharkhand, is surrounded by the country’s most productive coalmines. It will soon also be home to the Adani group’s latest coal-fired power station, a plant built for the sole purpose of sending energy across the border to Bangladesh.

Adani has framed its planned 1,600-megawatt Godda power plant as a humanitarian venture. In a statement to Guardian Australia, the company said it had acted “in the large interests of our neighbours, the people of Bangladesh” by inking the deal.

But market analysts say the supply agreement is anything but benevolent. The tariffs quoted by the Bangladesh Power Development Board are about double the current cost of solar and wind power in India.

Tim Buckley, a former head of equity research at Citigroup and now an analyst with the pro-renewable energy group the Institute for Energy Economics and Financial Analysis (IEEFA), says there is a more obvious reason for Adani to build Godda: to prop up the prospects of the proposed Carmichael megamine in Queensland.

Two deadlines for Adani to finance Carmichael have come and gone. Buckley said potential investors had balked, partly because there were no “bankable” off-take agreements in place. Effectively, Adani has nothing concrete to demonstrate that it can sell, and profit from, the high-ash coal it plans to extract from the Galilee basin.

Adani builds coal-fired power plant in India to send energy to Bangladesh

Posted in: IEEFA In the News

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