India's Adani Power is increasing electricity exports to Bangladesh, even as diplomatic relations between the two nations worsen. Exports from Adani's Godda coal-fired plant surged nearly 38% in the last three months of 2025. This growth pushed Indian exports to a record 15.6% of Bangladesh's power mix, up from 12% the previous year.

Bangladesh is grappling with gas shortages, which is its primary power source, and anticipates a 6-7% rise in electricity demand this year. Consequently, the country is boosting coal imports to offset the gas shortfall and meet energy needs. Coal imports rose 35% to a record 17.34 million metric tons in 2025, according to Kpler data.

Energy experts attribute the gas shortage to declining local production and transmission issues. Adani's supply is seen as a crucial stopgap. In 2025, Adani provided a record 8.63 billion kWh of electricity, representing 8.2% of Bangladesh's total supply. Even with strained relations, Adani's electricity remains more economical than oil-fired alternatives.

Despite strained diplomatic ties, the demand for power in Bangladesh has to be met. The ongoing situation highlights the complex interplay of energy security and international relations. The question now is whether the current diplomatic issues will impact future energy deals being struck between the two countries.