Kathmandu: India, Nepal and Bangladesh recently signed a trilateral agreement to export 40 Megawatts of electricity from Nepal to Bangladesh via India’s power grid. This historic agreement marks the first time Nepal will be exporting electricity to a third country, with previously exports only to India. The agreement was signed by representatives from Nepal Electricity Authority, India’s NTPC Vidyut Vyapar Nigam, and Bangladesh Power Development Board, in a ceremony attended by officials from all three nations involved.
The signing of this agreement comes after years of persistent efforts from all parties involved, with initial discussions dating back to 2018 when Nepal and Bangladesh signed an MoU on power sector cooperation. The journey towards this agreement included six successful meetings of the joint working group and joint steering committee, highlighting the commitment of all three nations to regional cooperation and shared prosperity in the energy sector.
Bangladesh will now import 40 megawatts of electricity from Nepal, with India also playing a crucial role in the transmission of the electricity to Bangladesh through its infrastructure. Despite not being territorially linked, the partnership between Nepal, India, and Bangladesh in the energy sector signifies a new era of collaboration and energy security in the region. The agreement is expected to encourage more investors to invest in Nepal’s hydropower sector, knowing that there is now a market not only in India but also in Bangladesh.
The signing of the agreement was originally scheduled for July 28 but was postponed due to political tension and a change of government in Bangladesh. With the agreement now in place, Nepal estimates earnings of around Rs330 million through the sale of electricity to Bangladesh over a period of five months. Additionally, Nepal and Bangladesh have agreed to collaborate on the development of the Sunkoshi-3 hydropower project and conduct a feasibility study for a cross-border transmission line for energy trade between the two countries.
The successful signing of this trilateral agreement marks a significant milestone in the energy cooperation between Nepal, India, and Bangladesh. The agreement not only opens up new opportunities for Nepal to export electricity to Bangladesh but also strengthens regional cooperation in the energy sector. It underscores the commitment of all three nations towards a sustainable and environmentally responsible energy future, aligning with global commitments towards clean and reliable electricity for all citizens.
Moving forward, the partnership between Nepal, India, and Bangladesh in the energy sector is expected to lead to greater energy security and economic growth in the region. The agreement paves the way for increased investment in Nepal’s hydropower sector and sets an example for other countries to follow in fostering collaboration for mutual benefit in the energy industry. As Nepal begins exporting electricity to Bangladesh, the three nations are poised to work together towards a more sustainable and prosperous future for all.
