Nepal exports electricity to Bangladesh through Indian power grid
New Delhi: The Nepal Electricity Authority has started exporting 40 MW of electricity to Bangladesh through the Indian power grid, marking the beginning of trilateral power cooperation in South Asia.
In November, the three countries inaugurated the power flow from Nepal to Bangladesh. This is the first trilateral power transaction done through the Indian grid.
Nepal’s Energy, Water Resources and Irrigation Minister Deepak Khadka said on social media platform X: “We have started exporting 40 MW of electricity to Bangladesh through the India grid, opening up a market of 5000 MW, and 80 MW of electricity is being exported to Bihar, giving Nepal access to the international energy market. This reflects our energy surplus and commitment to regional energy security.”
The electricity is sent to Bangladesh through India’s 400-kV Muzaffarpur-Bheramara transmission line.
In November last year, Manohar Lal, Minister of Power and Housing & Urban Affairs, India, along with Fauzul Kabir Khan, Advisor, Ministry of Power, Energy and Mineral Resources, Government of Bangladesh and Khadka jointly inaugurated the flow of electricity from Nepal to Bangladesh through a virtual event.
The Government of India had announced its decision to facilitate the first trilateral power transaction with export of up to 40 MW of electricity from Nepal to Bangladesh through the Indian grid during the visit of former Prime Minister of Nepal Pushpa Kamal Dahal ‘Prachanda’ to India in 2023. During the visit, both sides had expressed their commitment towards greater sub-regional cooperation, including in the energy sector, which will enhance inter-linkages between economies for the mutual benefit of all stakeholders.
Subsequently, a tripartite power sales agreement was signed between India’s NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority and Bangladesh Power Development Board on 3 October 2024 in Kathmandu.
India is making efforts to enhance regional power connectivity. India has bilateral connectivity with Nepal, Bhutan, Bangladesh and Myanmar, while talks are underway for grid connectivity with Sri Lanka. However, this is the first time that India’s grid will be used to move electricity between two other countries. In April, Union Power Minister Manohar Lal reviewed key bilateral energy initiatives aimed at enhancing regional connectivity and sustainable power development during his visit to neighbouring Nepal. He also reviewed the 900 MW Arun-3 hydropower project being developed by India’s state-owned SJVN Ltd in Nepal’s Sankhuwasabha district.
