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Regional energy coop Nepal begins hydropower export to Bangladesh

Staff Reporter :

In a notable step forward for regional energy cooperation, Nepal has officially commenced the export of hydropower to Bangladesh, utilising India’s cross-border transmission infrastructure.

On Sunday, Nepal began supplying 38 megawatts (MW) of hydroelectric power to Bangladesh, marking the implementation of a tripartite electricity trade agreement signed between Bangladesh, Nepal, and India. The cross-border supply began at 12 noon, confirmed Shamim Hasan, Director of Public Relations at the

Bangladesh Power Development Board (BPDB).
“Since midday today, we have been receiving an average of 38MW of electricity from Nepal,” Hasan stated.

Under the agreement, Bangladesh will import up to 40MW of clean, renewable energy from Nepal between 15 June and 15 November – Nepal’s peak hydropower production season.

The electricity is being delivered via Indian transmission lines, with the combined cost, including Indian grid charges, estimated at around Tk7 per kilowatt-hour.Adviser to the Ministry of Power, Energy and Mineral Resources, Muhammad Fouzul Kabir Khan, previously announced that all technical and logistical arrangements had been finalised to facilitate the imports. “This five-month period coincides with optimal hydropower generation in Nepal due to seasonal river flows,” he noted.

In a further development, Bangladeshi authorities are exploring the potential to export electricity to Nepal during the winter months, when snowfall significantly reduces Nepal’s hydropower output. Conversely, Bangladesh typically experiences lower domestic electricity demand during the same period.

“This presents a mutually advantageous opportunity,” said Adviser Fouzul. “We intend to formally propose electricity exports to Nepal during their winter shortfall. An invitation will be extended to the Nepali Minister of Power and Energy to visit Dhaka for discussions.”

This cross-border energy initiative stems from a landmark agreement signed on 3 October 2024 in Kathmandu, involving the BPDB, the Nepal Electricity Authority (NEA), and India’s NTPC Vidyut Vyapar Nigam Limited (NVVN). The deal established the framework for regional electricity trading among the three nations.

The operationalisation of hydropower trade between Nepal and Bangladesh, facilitated by India, represents a significant milestone in South Asia’s pursuit of sustainable and integrated energy development. It underscores the growing commitment among neighbouring countries to collaborate on renewable energy solutions and enhance regional energy security.