Nepal, India, and Bangladesh Sign Historic Electricity Trade Agreement

Nepal, India, and Bangladesh have recently entered into a significant tripartite agreement aimed at facilitating cross-border electricity trade, marking a notable step in regional energy cooperation. This agreement allows Nepal to export its surplus electricity to Bangladesh via India during the rainy season, specifically from June 15 to November 15 each year. In the initial phase, Nepal is set to export 40 MW of hydroelectricity, leveraging India’s infrastructure for transmission. The agreed rate per unit of electricity is fixed at 6.4 cents, with Nepal expected to generate approximately USD 9.2 million annually from this trade.

Key Details of the Agreement

Export Duration: Surplus electricity from Nepal to Bangladesh will be exported during the rainy season from June 15 to November 15 each year.

Electricity Volume: The initial phase will see an export of 40 MW of hydroelectricity.

Financial Implications: Nepal is anticipated to earn around USD 9.2 million annually from the electricity exports.

Signatories: The agreement was signed in Kathmandu by NEA Executive Director Kulman Ghising, NTPC Vidyut Byapar Nigam CEO Deino Naran, and Bangladesh Power Development Board Chairman Mohamad Rizwan Karim, with the presence of Nepal’s Energy Minister Dipak Khadka and Bangladeshi counterpart Sayeda Rijwana Hasan.

Broader Implications

This agreement not only strengthens energy ties among the three nations but also paves the way for further regional cooperation in energy sustainability and infrastructure development, highlighting the importance of collaboration in addressing energy needs and promoting economic growth in South Asia.