Nepal, India, and Bangladesh have signed a long-awaited tripartite agreement on facilitating cross-border power trade in electricity. officials confirmed that this pact would allow Nepal to export surplus electricity into Bangladesh through Indian territory, thus boosting energy connectivity between the three nations.

What does the agreement entail?

The agreement enables Nepal to supply its excess hydroelectricity to Bangladesh during the rainy season, between June 15 and November 15 every year. India's transmission network will be used to channel the electricity from Nepal to Bangladesh, cementing a new phase of cross-border energy cooperation.

Nepal will export 40 MW of hydroelectricity, and export price will be 6.4 cents. According to officials from the Nepal Electricity Authority (NEA), this export will generate approximately $9.2 million in annual revenue for Nepal.

Key route and infrastructure

Nepal's electricity supply will be transmitted via Dhalkebar-Muzaffarpur 400 kV transmission line. The metering point would be located in Muzaffarpur, India.  This infrastructure is crucial because it will ensure that electricity is easily distributed in Bangladesh and mark a significant step toward more integrated energy networks in the region.

cross-border power trade
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Bangladesh's Cabinet Economic Affairs Committee had already greenlit the import of 40 MW of electricity from Nepal back in December 2023, setting the stage for the agreement. However, the signing, initially planned for July 28, was delayed due to political changes in Bangladesh.

The agreement was sealed following preparatory meetings held in Kathmandu this week, where officials of the three nations finalised their agreement. The memorandum of understanding (MoU) was inked in Kathmandu by NEA Executive Director Kulman Ghising, NTPC Vidyut Byapar Nigam CEO Deino Naran, and Bangladesh Power Development Board Chairman Mohamad Rizwan Karim. Nepal's Energy Minister, Dipak Khadka, and his Bangladeshi counterpart, Sayeda Rijwana Hasan, attended the signing ceremony, underscoring the high-level commitment to this transformative initiative.

The successful implementation of this agreement is expected to pave the way for even larger energy exchanges between the three countries, contributing to regional energy security and economic growth.

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