Bangladesh's Rampal Powerplant

Over the last decade, we have seen a rise in nationalism and domestic protectionism all over the globe, which runs counter to the previous global policies geared towards globalisation and sustainable development. In this article, I want to discuss the case of Rampal Powerplant in Bangladesh, to see how governments are balancing environmental concerns with economic sustainability and national security, especially with the current fuel shortage scenario in mind.

In 2009, the Bangladesh government approved the Rampal Powerplant to combat the country’s rising electricity demand. To lower land acquisitions and community displacement costs, the project was proposed to be located near the Sunderban Forest, despite the severe environmental concerns the project posed. (Mahmud et al., 2020; Center for Environmental and Geographic Information Services, 2023)

Sunderban is the world's largest continuous mangrove forest. It has been a designated UNESCO World Heritage Site since 1987 and a Ramsar Site of International Importance since 1992. It hosts the endangered Royal Bengal Tigers, Gangetic Dolphins and has immense ecological significance for the region’s biodiversity. Counterintuitively, the Rampal Powerplant (also known as Maitree Super Thermal Power Project) is a 1,320 MW coal-fired power plant, which has been built only 14 km north of the Sunderban Forest. (Zaman, 2024)

Throughout the project’s planning stage, approval stage and construction stage, it drew much opposition and resistance from locals, students, researchers, NGOs, and international bodies, due to the environmental and health impact it would have on its surroundings. Multiple research papers support such concerns, for example, one paper published independently modelled the carbon emissions, predicting that the plant would produce roughly 750,000 tons of fly ash and 200,000 tons of bottom ash every year, enough to fill 250 Olympic-sized swimming pools or blanket the entire Adelaide CBD. (Samiullah et al., 2024; Sharda & Buckley, 2016)

The project was also mired in scandals of financial irregularity and corruption. The high-interest foreign loan taken by the government to fund the project brought its viability into question. The government lacked the financial capability to pursue such large-scale infrastructural development, but reputed international lenders were unwilling to invest in such an environmentally unsustainable project. Eventually, the project secured the credit at a much higher interest rate from the EXIM Bank of India. Although analysis suggests that the project will regain its viability once the loans are repaid, the 20 years repayment period constitutes over 40% of the power plant’s estimated lifespan. (Sharda & Buckley, 2016)

Despite criticism and opposition, the government completed this project by 2024, along with three others around the country, advocating for diversifying fuel sources toward a lower-cost supply. The government insisted that the country needs coal-fired power plants to make electricity more affordable and accessible, especially for rural areas. The government of Bangladesh was always in support of more coal-fired power plants. There were ten more coal-fired power plants in the planning stage. There were even expansion plans for each of the five existing coal-fired power plants.  However, due to international pressure (such as the Paris Accords in 2015), such plans had to be scrapped, and no further coal-fired power plant project proposals were considered. (Karim, 2021)

Although it was observed that the assertions of lower electricity costs were true (production cost per unit of electricity was approximately one-third of that of oil-fired power plants of similar capacity), it still does not offset the plant’s environmental impact. The project continues to face criticism today, even after becoming operational. (Abdullah, 2025; Chowdhury AH, 2017)

However, the current international fuel shortage scenario has sparked renewed discussion on the contribution of coal-fired power plants like the Rampal Powerplant that can no longer be ignored. We must understand that Bangladesh is one of the most densely populated countries in the world (according to the World Bank, Bangladesh has a population density of 1319 people per square kilometre). With such high population density, the management of food, housing, employment, logistics, healthcare, etc., requires extensive use of electricity and, in extension, fuel. The situation is exacerbated by the country’s lack of its own natural resources, its limited foreign currency reserves, and the absence of a sovereign fund. This means that in the event of a supply shock, such as the closure of the Strait of Hormuz, the country and its economy would find it very difficult to secure fuel for its citizens.  

Alternative environmentally-friendly and renewable energy sources are also not feasible for the country in the short-run. Bangladesh is located among low-lying deltas with extremely flat topography, mostly 9-10 meters above sea level, making hydropower not feasible. (Razan et al., 2012) While the dense population makes finding large inhabited areas for wind or solar power generation unrealistic. Even if the government were willing to displace a large population to start such projects, it lacks the financial capability to pursue them. Such projects and proposals can only be tabled for long-term discussions and plannings.

As for nuclear power, Bangladesh has long intended and lobbied IAEA to allow for the construction of a nuclear power plant in Rooppur. But safety and feasibility concerns hindered the project from materialising. After years of political and bureaucratic meandering, Bangladesh started construction on the Rooppur Power Plant in late 2017, in collaboration with Russia’s Rosatom. But following the COVID-19 pandemic, the Russia-Ukraine war & the ensuing sanctions, and local political unrest, the project had repeatedly been stalled, and the plant has yet to commence operation. (Akinola, 2025)

Bangladesh also entertained the idea of purchasing electricity from neighbouring countries (cross-border electricity trade). Bangladesh imports approximately 2560 MW of electricity from India, primarily from Adani Power Godda Plant (a coal-fired plant in Jharkhand) and about 40 MW from Nepal (hydroelectricity) through India. However, aside from higher unit costs, such deals remain unreliable in times of international turmoil. (Amin & Rahman, 2018)

Now, with the uncertainty regarding the passage through the Strait of Hormuz, the importance of energy source diversification has taken on a whole new perspective. Bangladesh is one of the few countries in Southeast Asia where fuel prices have not soared, and the contribution of coal-fired power plants like the Rampal Plant cannot be understated. Countries like Bangladesh have very limited options at hand for power generation, and electricity is no longer a privilege vital for economic growth but rather has become a basic necessity for daily survival in modern society. Although electricity does not seem as impactful as the air we breathe or the water we drink, without electricity, how can we navigate our complex supply-chain network, conduct medical diagnosis and operations, or construct infrastructure to support our current population? Although reducing pollution and managing the environment ensures a future for the next generations, without food security and medical support, the future seems just as bleak. I am of the opinion that the current global trends will push more countries like Bangladesh to face the trade-off of securing energy stability at the expense of the environment.

References

Mahmud, M. S., Roth, D., & Warner, J. (2020). Rethinking “development”: Land dispossession for the Rampal power plant in Bangladesh. Land Use Policy, 94. ScienceDirect. https://doi.org/10.1016/j.landusepol.2020.104492

Center for Environmental and Geographic Information Services (2023). “Environmental Studies for Maitree Super Thermal Power Project, Rampal, Bagerhat”. (CEGIS Report: 09 November 2023). Government of Bangladesh, Ministry of Water Resources. https://www.slideshare.net/probirbidhan/environmental-impact-assessmen

Zaman, Md. (2024). Rampal Coal-Fired Power Station: Evaluating Its Impacts on the Biodiversity and Ecosystem Resilience of the Sundarbans. 2. E1-E9. 10.5281/zenodo.13766418.

Samiullah, Md Swapno & Aktar, Shohida & Abdullah, Mohammad & Sayed, Captain & Golam, Sharwar. (2024). Impacts of Coal-Fired Power Plant Emissions on the Environment: A Bangladesh Perspective. https://www.researchgate.net/publication/383384494_Impacts_of_Coal-Fired_Power_Plant_Emissions_on_the_Environment_A_Bangladesh_Perspective

Sharda, J., & Buckley, T. (2016, June). Risky and Over-Subsidised: A Financial Analysis of the Rampal Power Plant [Review of Risky and Over-Subsidised: A Financial Analysis of the Rampal Power Plant]. Institute for Energy Economics and Financial Analysis. https://ieefa.org/wp-content/uploads/2016/06/Risky-and-Over-Subsidised-A-Financial-Analysis-of-the-Rampal-Power-Plant-_June-2016.pdf

Karim, N. (2021, June 28). Bangladesh scraps plans to build 10 coal-fired power plants. Reuters. https://www.reuters.com/world/bangladesh-scraps-plans-build-10-coal-fired-power-plants-2021-06-28/

Abdullah, S. (2025, December 14). Govt moves to revise Rampal, Payra power tariffs using Matarbari rate as benchmark. The Business Standard. https://www.tbsnews.net/bangladesh/energy/govt-moves-revise-rampal-payra-power-tariffs-using-matarbari-rate-benchmark

Chowdhury AH. Environmental impact of coal based power plant of Rampal on the Sundarbans (world largest mangrove forest) and surrounding areas. MOJ Eco Environ Sci. 2017;2(3):85-98. DOI: 10.15406/mojes.2017.02.00022

Razan, J. I., Islam, R. S., Hasan, R., Hasan, S., & Islam, F. (2012). A Comprehensive Study of Micro-Hydropower Plant and Its Potential in Bangladesh. ISRN Renewable Energy, 2012, 1–10. https://doi.org/10.5402/2012/635396

Akinola, A. A. (2025). The Political Economy of Rooppur Nuclear Power Plant in Bangladesh. Energy and Power Engineering, 17(09), 249–257. https://doi.org/10.4236/epe.2025.179014

Amin, S. B., & Rahman, S. (2018). Importance of Cross-Border Electricity Trading in Bangladesh Energy Sector. Energy Resources in Bangladesh, 49–52. https://doi.org/10.1007/978-3-030-02919-7_9