Nepal starts exporting energy to Bangladesh with Indian grid support

Nepal exports electricity to Bangladesh via India, boosting regional connectivity and addressing Bangladesh's power crisis.

In a first, Nepal on Friday (November 15, 2024) began exporting electricity to Bangladesh by using India’s electricity grid. The power flow was inaugurated by the Union Minister for Power and Housing and Urban Affairs Manohar Lal along with the Minister of Energy, Water Resources and Irrigation of Nepal Dipak Khadka and the Energy Adviser of the Government of Bangladesh Fouzal Kabir Khan.

“The start of this power flow from Nepal to Bangladesh through India is expected to boost sub-regional connectivity in the power sector,” the Ministry of External Affairs said after the inauguration of the power supply to Bangladesh from Nepal. As a Himalayan country, Nepal has untapped hydro power potential and Kathmandu has been demanding such cross border electricity cooperation across the region.

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The supply of Nepal’s electricity to Bangladesh has started at a time when Bangladesh is dealing with an electricity crisis especially after the suspension of power supply from Adani’s Godda plant with which Bangaldesh had an agreement.

The three-government power transfer was made possible by the tripartite power sales agreement between NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority, and Bangladesh Power Development Board (BPDB) which was signed on October 3 in Kathmandu. During the May 31 to June 3, 2023, visit of former PM of Nepal Pushpa Kamal Dahal, a decision was taken to facilitate the first trilateral power transaction from Nepal to Bangladesh through Indian grid with an export of up to 40 MW of power.

Nepal’s Minister of Energy Dipak Khadka described the development as a sign of “energy alliance” among India, Bangladesh, and Nepal and said, “Today, Nepal begins exporting 40 MW of electricity to Bangladesh, marking a historic milestone under the Tripartite Power Sales Agreeement with NEA, BPDB, and NVVN. This green energy initiative promises industrial growth and regional prosperity.”

Bangladesh has been facing electricity shortage which was further compounded in the backdrop of the political instability in the country. However, introduction of Nepalese electricity has come two days after a petition was filed by Barrister M. Abdul Qayum in the High Court in Dhaka seeking review or cancellation of the Government of Bangladesh with Adani group. Qayum has said that the agreement with Adani will lead to “significantly higher” price of electricity for consumers in Bangladesh. Apart from that Bangladesh’s Payra thermal unit is also in maintenance mode which has hampered production.