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The Godda Coal Power Plant of Adani Group will take USD 11.01 billion (108,360.60 crore taka) as capacity charge from Bangladesh in its 25 years of lifetime, revealed a recently released report.
According to this report co-published by Bangladesh Working Group on External Debt (BWGED) and Growthwatch, Bangladesh could have built three Padma Bridges with the amount to be spent for capacity charges.
“The amount for the capacity charge is nine times higher than the budget of Karnaphuli River Tunnel and more than four times than the Dhaka Metro Rail”, said Hasan Mehedi, an author of the report and member secretary of BWGED.
According to the report, the Adani Group may take USD 423.29 million (3,657 crore taka) as capacity charge per year, which will help them to make more money without benefitting Bangladeshi people.
The power plant is supposed to go into operation in August 2022, however, Bangladesh won’t be able to receive the electricity until an active transmission line is being built or installed.
Even if the transmission line were built by December 2022 according to the plan, Bangladesh will have to pay USD 141.10 million (BDT 1,219.10 crore) of capacity charges in four months only.
According to the estimation of the report, the cost of electricity from the Godda power plant will be at least BDT 9.09 per kWh, which is 56% higher than the other imported electricity and 196% higher than solar power in India. In addition to that, the cost of electricity from the Godda Adani Group will increase by 5.5% per year, while the cost of solar power will be decreasing at a yearly rate of 10%.
“This power plant will be a huge burden on the Bangladesh economy. It doesn’t make any sense to import coal power from India when Bangladesh is experiencing around 60% overcapacity now” Hasan Mehedi said.
The report reveals that the environmental and social cost (e.g. Hospitalization, Agriculture, Fishing) of the emissions of hazardous air pollutants and carbon dioxide is USD 729.64 million (INR 5,569.34 crore) per year and USD 24.72 billion (INR 188,708.29 crore) over its lifetime.
However, sponsor company Adani Power is liable to pay the environmental and social cost.
Bangladesh Power Development Board (BPDB) signed an agreement with Adani Group in November 2017 to offtake 1,496 MW power from Godda Coal Power Plant under cross-border electricity trade arrangement. The BPDB agreed to pay USD 0.038 (BDT 3.26) per kWh as capacity charge which is higher than any other power plant in Bangladesh.
After the agreement, Adani Group took 1,255 acres of land from the local farmers in Jharkhand against their will and without paying proper compensation. The company also tortured the poor land owners by using musclemen and law enforcing agencies.
The power plant may emit 221.1 million tons of carbon dioxide in its lifetime with an average emission of 9.35 million tons annually. India is the fifth most polluted and third highest greenhouse gas emitting country in the world.
The Indian Government has given a commitment to achieve net zero by 2070 instead of 2050. The position is highly criticized by the global community. This power plant will only help to establish India as a climate denier.
The report suggests that considering the global and national commitments, both of the governments should form a joint committee for annulling the existing agreement and replacing it to supply renewable energy in line with the Paris Agreement and Glasgow commitments.
Before phasing out the coal power plant the Government should impose No Electricity No Pay policy on Godda coal power plant and adopt an Emission Standard and Human Rights Standard in importing any commodities including electricity from neighboring countries.
“The Bangladesh government should also stop importing any fossil fuel based electricity and take a strict position to import only renewable energy from neighboring countries in line with the Mujib Climate Prosperity Plan'' said Vidya Dinker, co-author of the report and coordinator of Growthwatch, India.
The report suggests instructing Adani Group to supply at least 15% electricity from renewable energy sources by 2025 and 30% by 2030 in line with the SDGs and Mujib Climate Prosperity Plan.
“Considering the energy security, Russia-Ukraine war and global economic crisis, there is no other way than cancelling these types of agreements and building a renewable energy based electricity system in Bangladesh”, said Dr. Kazi Maruful Islam, Convener of BWGED and Professor of Development Studies department in the University of Dhaka.