Nepal Achieves Milestone by Exporting 40 MW of Electricity to Bangladesh for the First Time

Nepal recently exported 40 megawatts of electricity to Bangladesh for the first time, using an Indian transmission line. This event is considered a significant development in South Asian electricity trade. The power was transmitted at around 1 pm local time, according to Chandan Ghosh, spokesperson for the Nepal Electricity Authority (NEA). However, this export was limited to a single day, with continuous exports scheduled to begin on June 15, 2025.

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India's Union Minister for Power, Manohar Lal, along with Md Fouzul Kabir Khan from Bangladesh's Ministry of Power and Nepal's Energy Minister Dipak Khadka, inaugurated the power flow virtually. The agreement to export electricity was signed in Kathmandu on October 3, involving NEA, NTPC Vidyut Vyapar Nigam Limited of India, and the Bangladesh Power Development Board (BPDB). The export will occur during the rainy season from June 15 to November 15 for five years.

Trilateral Cooperation in Energy

The agreement between Nepal, India, and Bangladesh marks the first trilateral power transaction facilitated by India. This initiative was announced during former Nepal Prime Minister Pushpa Kamal Dahal 'Prachanda's visit to India from May 31 to June 3, 2023. The Ministry of External Affairs (MEA) in New Delhi highlighted this as a historic occasion that enhances sub-regional cooperation in energy.

Ghosh described this event as a "historic occasion," stating it has broken diplomatic and technical barriers in trading electricity with non-neighbouring countries. He emphasized that this development allows Nepal to sell electricity beyond its immediate neighbours. The MEA also noted that this power flow is expected to strengthen sub-regional connectivity in the power sector.

Economic Implications

Nepal will charge Bangladesh 6.4 cents per unit of electricity sold under the agreement. Friday's export originated from Nepal's Trishuli and Chilime hydropower plants and utilised India's Muzaffarpur-Beharampur-Bhedamara transmission line. The Daily Star reported that this arrangement is anticipated to enhance sub-regional connectivity in the power sector.

The export comes at a crucial time for Bangladesh as it seeks stable electricity supply amid reduced output from a plant in Godda, Jharkhand. The initial delay in exporting power was attributed mainly to political unrest in Bangladesh. Despite these challenges, the collaboration signifies a step forward in regional energy cooperation.

Nepal's Energy Minister Khadka expressed gratitude towards India for facilitating this electricity export. He remarked that exporting electricity to Bangladesh marks a milestone in South Asian electricity trade. This initiative reflects both countries' commitment to enhancing sub-regional cooperation and economic interlinkages for mutual benefit.