Nepal Begins Electricity Export to Bangladesh, Becomes First South Asian Country to Trade Power with a Third Nation

In a historic move, Nepal has officially started exporting 40 megawatts (MW) of electricity to Bangladesh from Saturday, making it the first South Asian country to export electricity to a third country beyond its immediate neighbor.

The commercial export marks a major milestone as Nepal, having fulfilled its domestic electricity demand, is now selling surplus power to Bangladesh. The inauguration ceremony was held in Kathmandu, where Nepal’s Minister for Energy, Water Resources and Irrigation, Dipak Khadka, jointly switched on the power supply with India’s Minister of Power Manohar Lal and Bangladesh’s Energy Adviser Mohammad Fozlul Kabir Khan.

The tripartite agreement between Nepal, India, and Bangladesh was signed on October 3, 2024 (Ashoj 17, 2081 BS), allowing Nepal to export 40 MW of electricity to Bangladesh during the monsoon season each year—from June 15 to November 15—for five consecutive years until October 2, 2029.

The electricity is being transmitted through Nepal and India’s first cross-border transmission line – the 400kV Dhalkebar–Muzaffarpur line. From Muzaffarpur, the power travels through India's transmission network to reach Behrampur (India) and then to Bheramara (Bangladesh) via another 400kV interconnection.

The electricity being exported comes from Nepal Electricity Authority’s (NEA) Trishuli and Chilime hydropower plants, contributing 18.60 MW and 21.40 MW respectively, totaling 40 MW.

On the first day of export, Nepal sold 470,000 units of electricity, earning $30,080 in revenue. The agreed export price is 6.40 US cents per unit. All associated transmission charges, losses, NVVN (NTPC Vidyut Vyapar Nigam) trading margins, and other costs beyond Muzaffarpur are to be borne by Bangladesh. The Bangladesh Power Development Board (BPDB) will also be responsible for all payments.

This development represents a significant achievement for Nepal, not only in maximizing its hydropower potential but also in establishing itself as a regional electricity exporter. It is a strategic leap in energy diplomacy and economic advancement.