Nepal and Bangladesh Forge Agreement to Initiate Electricity Export, Commencing with 40 MW in the First Phase

Nepal has solidified a multilateral agreement for the export of electricity to Bangladesh. Government officials have confirmed this pivotal advancement, marking a momentous step towards strengthening collaborative ties in the energy sector. The Ministry of Energy, Water Resources, and Irrigation revealed that a comprehensive agreement has been established, spanning Nepal, India, and Bangladesh, with the initial phase entailing the supply of 40 megawatts of electricity to Bangladesh.

While the current allocation of 40 megawatts might seem modest, experts in the field assert that the initiation of Nepal’s electricity export to neighboring countries is of paramount significance. The Nepal Electricity Authority has successfully forged an agreement with the Indian nodal agency NVVN (NTPC Vidyut Vyapar Nigam) to facilitate the export to Bangladesh. This collaboration will see the transmission of Nepal’s electricity to its southern neighbor under the purview of NVVN.

Despite the resolute progress, certain aspects are yet to be finalized, including the selection of the specific project for electricity export, the determination of the unit cost, and the compensation to the Indian counterpart for transmission services. While these details remain to be conclusively settled, officials have expressed optimism that the deliberations will culminate swiftly.

Exchange of emails between the involved parties has laid the groundwork for a formal agreement, which is anticipated to be signed by officials from both countries in person. Discussions have also been ongoing regarding the modality of electricity transmission and related administrative processes. These deliberations are geared towards facilitating the seamless export of Nepal’s energy resources to Bangladesh, underscoring the commitment towards mutual energy cooperation.

Ganesh Karki, Chairman of the Independent Energy Producers Association of Nepal (IPAN), stressed the significance of this milestone, stating, “The commencement of electricity export to third countries symbolizes a monumental achievement, signaling Nepal’s ascension to the league of energy-exporting nations.” Karki emphasized that this landmark move would catalyze foreign investments and augment Nepal’s appeal as a prospective energy partner.

As Nepal embarks on this transformative journey of energy collaboration, experts assert that the commencement of electricity export to Bangladesh serves as a precursor to broader energy integration within the region. Bangladesh, a nation with an ambitious agenda for clean energy acquisition, has articulated a strategic vision of importing 9,000 MW of electricity from Nepal by the year 2040.

The meticulous negotiations between Nepal and Bangladesh, along with the continued partnership with India, have illuminated a path towards mutually beneficial energy collaboration. As procedural formalities culminate, the symbolic dispatch of rainy season electricity to Bangladesh is anticipated to mark the onset of a new era in regional energy synergy, fostering sustainable development and fostering lasting partnerships.