Nepal has embarked on a significant milestone in energy trade, beginning electricity exports to Bangladesh through a tri-nation agreement involving Nepal, Bangladesh, and India. Under the arrangement, Nepal will export 40 megawatts of electricity to Bangladesh for five months each year, from June 15 to November 15. This collaboration underscores Nepal’s growing role as a regional energy partner and opens a new chapter in South Asia’s power-sharing network.
The agreement, finalized on October 17, facilitates the transmission of Nepali hydropower to Bangladesh using Indian transmission lines. The process includes sending electricity through the 400 kV Dhalkebar-Muzaffarpur transmission line from Nepal to India, then onward through India’s grid to Bangladesh. The agreement was inaugurated with the virtual participation of energy ministers from the three nations, symbolizing a shared commitment to sustainable energy cooperation in South Asia.
Key Points of the Agreement
- Annual Export Period: Nepal will export electricity to Bangladesh for five months, from mid-June to mid-November.
- Transmission and Metering: The export meter will be set at Muzaffarpur, India, where Nepal’s electricity enters the Indian grid.
- Project Sources: The electricity supplied to Bangladesh will come from the Trishuli (25 MW) and Chilime (22 MW) hydropower plants, both approved for export.
- Earnings: Nepal Electricity Authority (NEA) projects monthly earnings of 330 million rupees from the sale, with an estimated revenue of 92 million USD over the five-month period.
Economic and Environmental Impact
This trade aligns with Nepal’s vision of expanding its hydropower sector, both as a domestic resource and a regional export. Kulman Ghising, Executive Director of NEA, notes that by leveraging Nepal’s abundant water resources, the agreement provides a win-win solution: revenue for Nepal, cost-effective energy for Bangladesh, and a model for future cooperation in South Asia.
Beyond financial gains, the initiative also represents a step towards sustainable and environmentally friendly energy use in the region. As demand for clean energy grows, partnerships like these could pave the way for greener energy solutions that benefit all involved nations.
A Growing Role for Nepal in Regional Energy Markets
The journey to finalize this tri-nation agreement has taken six years of strategic planning and negotiation. With India’s approval and Bangladesh’s interest in Nepal’s hydropower, this agreement opens up future opportunities for Nepal as an energy provider in South Asia. As Nepal continues to expand its energy capabilities, this partnership strengthens its position on the global map as a clean energy supplier.
Looking Ahead
Nepal’s first export to Bangladesh is a powerful example of cross-border cooperation. This annual trade not only highlights Nepal’s hydropower potential but also encourages further economic, social, and environmental partnerships. In coming years, Nepal may explore additional agreements that expand its energy exports to other regions.
This groundbreaking electricity export agreement reflects Nepal’s commitment to sustainable energy solutions and regional cooperation. It is a reminder of the tremendous potential of Nepal’s rivers and the impact of harnessing these resources for a greener future. Through initiatives like these, Nepal’s role as a key player in regional energy continues to grow, offering sustainable benefits to neighboring countries and reinforcing Nepal’s reputation as a leader in clean energy.
