Nepal Exporting Electricity to Bangladesh: Historic Agreement Signed

Nepal has officially opened the pathway to export electricity to a third country with the signing of an agreement between three companies from Nepal, India, and Bangladesh. This marks a historic milestone for the country.

The trilateral agreement: A tripartite deal was signed between Nepal Electricity Authority (NEA), Bangladesh Power Development Board (BPDB), and India's NTPC Vidyut Vyapar Nigam (NVVN). Under this agreement, Nepal will export 40 megawatts of electricity to Bangladesh in the first phase. The agreement was signed by Kulman Ghising, Managing Director of NEA; Md. Rezuul Karim, Chairman of BPDB; and Renu Narang, CEO of NVVN.

Electricity export to Bangladesh: Nepal will export electricity to Bangladesh at a rate of around NPR 8.64 per unit (6.40 US cents). The electricity will be transmitted through India’s grid, and Bangladesh will bear the "wheeling charge" while technical losses will be shared between Nepal and Bangladesh.

Power generation source: Nepal will export electricity generated from the 25 MW Trishuli and 22 MW Chilime hydropower projects, for which approval has already been obtained.

Targeted electricity export: According to the agreement, Nepal will export 40 MW of electricity annually for five years, delivering a total of 144 million units of electricity each year. This will generate around NPR 1.21 billion in revenue for Nepal annually.

Future goals: Nepal aims to export 10,000 MW of electricity to India and 5,000 MW to Bangladesh in the future.

This agreement is seen as a cornerstone for energy cooperation in South Asia and is expected to position Nepal as a significant player in the global electricity trade.