Staff Reporter :
Nepal has officially begun exporting electricity to Bangladesh through the Indian grid, marking a significant step towards enhanced sub-regional connectivity in the power sector.
This power flow was inaugurated virtually by Union Minister for Power and Housing and Urban Affairs, Shri Manohar Lal, along with Md. Fouzul Kabir Khan, Adviser to Bangladesh’s Ministry of Power, Energy and Mineral Resources, and Dipak Khadka, Nepal’s Minister of Energy, Water Resources, and Irrigation.
Under the trilateral agreement, Nepal will export 40 megawatts (MW) of electricity to Bangladesh via India’s Muzaffarpur-Baharampur-Bheramara transmission line. This move is expected to strengthen the energy ties between the three nations.
Bangladesh becomes the second country to import Nepalese electricity, following India, after Nepal began exporting surplus hydropower, particularly during the monsoon season. The export initiative was first discussed during Nepalese Prime Minister Pushpa Kamal Dahal ‘Prachanda’s visit to India in June 2023, when both nations committed to improving sub-regional cooperation in the energy sector.
A tripartite power sales agreement was signed on 3 October 2024 in Kathmandu between NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority (NEA), and Bangladesh Power Development Board. This agreement allows Nepal to export electricity to Bangladesh from 15 June to 15 November each year for five years, with potential to increase exports as additional transmission lines are constructed.
Currently, due to the limited capacity of the Indian grid, only 40 MW is being exported, but Nepal is poised to earn $9.2 million annually from this deal. The power flow is expected to help alleviate energy shortages in Bangladesh, especially following reductions in supply from Adani’s power plant in Jharkhand.
However, Nepal will only be able to sell electricity to Bangladesh for one day in 2024, with exports to resume on 15 June 2025.