Kathmandu [Nepal], October 4 (ANI): India, Nepal, and Bangladesh on Thursday signed a trilateral agreement to export 40 Megawatts of electricity from Nepal to Bangladesh via India’s power grid, a development hailed and welcomed by officials of all three nations involved.
The tripartite agreement signed in Kathmandu now enables Nepal to sell electricity to a third country for the first time. Nepal has only been exporting electricity to India, its southern neighbour.
“This achievement is the result of the convenience of our persistent efforts since 2018 when Nepal and Bangladesh signed a MoU on power sector cooperation and following six successful meetings of the joint working group and joint steering committee,” Deepak Khadka, Nepal Minister for Energy, Water Resources and Irrigation said.
The agreement was signed by Kulman Ghising, executive director of the Nepal Electricity Authority, Renu Narang, CEO of India’s NTPC Vidyut Vyapar Nigam, and Mohammad Rezaul Karim, chairman of Bangladesh Power Development Board amid a function in Kathmandu.
Energy Minister Deepak Khadka, Minister of State for Energy Purna Bahadur Tamang, and Bangladeshi Minister for Forest, Environment, Climate Change, and Water Resources Syeda Rizwana Hasan witnessed the signing of the deal.
“This event is a milestone in our journey towards regional cooperation and shared prosperity in the energy sector. In Bangladesh, our goal is to ensure all citizens have access to clean, safe and reliable electricity at an affordable price. This not only supports our national aspirations but also aligns with global commitments towards a more sustainable and environmentally responsible future,” Bangladeshi minister Hasan said.
As per the agreement, Bangladesh will now import 40 megawatts of electricity from Nepal. The Indian side has also been involved in the trade deal as Nepal’s electricity will be transmitted to Bangladesh through the transmission infrastructure on the Indian territory.
Notably, Nepal and Bangladesh are not territorially linked to each other.
“I am confident therefore that today’s agreement between these three entities would boost power sector cooperation between Nepal, India and Bangladesh. It would also signal to investors to invest in Nepal’s hydropower sector because they would be assured that the market is not only just India but also in Bangladesh now. The agreement signed today therefore would lead to greater energy security between our three countries,” Indian Ambassador, Naveen Srivastava said.
Nepal is estimated to sell 144,000 MWh (megawatt-hour) of electricity in five months mid-June to mid-November-at the rate of 6.4 US cents a unit. Originally scheduled for July 28, the signing was postponed due to political tension and a change of government in Bangladesh.
For now, Nepal will transmit the energy to India through the 400KV Dhalkebar-Muzaffarpur cross-border transmission line before India transmits the equivalent to Bangladesh.
The NEA will calculate the quantum of exported energy at the Muzaffarpur point. The NEA estimates earnings of around Rs330 million for the country through the sale.
A Nepal-Bangladesh meeting also agreed to develop the Sunkoshi-3 hydropower project in a collaborative participatory modality between Nepal, Bangladesh and India. They have decided to finalize a joint venture agreement in the next meeting.
The two sides have also agreed to conduct a technical and financial feasibility study of the proposed cross-border transmission line for energy trade between Nepal and Bangladesh. (ANI)
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