Nepal-Bangladesh sign agreement for additional 20 MW electricity deal

Nepal will now export an additional 20 megawatt (MW) of electricity to Bangladesh, apart from the existing 40 MW export deal between the two countries. 

According to the press statement released by Nepal’s Ministry of Energy, Water Resources and Irrigation (MoEWRI), the additional export was agreed under the seventh meeting of secretarial level Joint Steering Committee (JSC). Nepal will begin exporting once necessary approvals for exporting are obtained.

The meeting was co-led by Secretary of the MoEWRI, Chiranjivi Chataut and his Bangladeshi counterpart Farjana Mamataj in Dhaka. Through secretary-level discussion, the JSC agreed on the recommendation prepared by the Joint Working Group (JWG).

Bangladesh will also form a specialist committee to conduct project evaluation on investment in 683 MW Sunkoshi-III Hydropower Project and to finalise its Joint Venture Agreement (JVA) for investment modalities.

Both sides will conduct a study on the possibility of exporting Nepal's electricity to Bangladesh through India via multiple transmission grids, which include Barapukuria, Panchagarh/Thakurgaon, Bheramara and Comilla. Nepal currently transmits the energy to India via the 400 kV Dhalkebar-Muzaffarpur cross-border transmission line. India transmits the equivalent to Bangladesh via the 400 kV Behrampur-Bheramara line.

Additionally, the press release states both sides will complete their internal procedure to sign a Memorandum of Understanding (MoU) on Bangladesh’s technical assistance to Nepal in energy auditing, EV charging and rooftop solar areas. Both sides also plan to conduct reciprocal capacity-building programs. 

Bangladesh has a huge appetite for electricity thanks to its growing and industrialising economy. In 2020, it had expressed intent to purchase 500 MW of electricity from Nepal’s 900 MW Upper Karnali Hydropower Project.  

Additionally, Nepal and Bangladesh will jointly work to obtain a trilateral MoU with India for enhancing energy sectors. The two countries will require a new clearance from India for the additional trade.

Nepal signed a trilateral agreement with India and Bangladesh on October 3, 2024, to export 40 MW of electricity at the rate of 6.4 US cents per unit (kWh)—18.60 MW from the Trishuli Hydropower Project and 21.40 MW from the Chilime Hydropower Project. The deal was signed for a period of five years, with exports scheduled for five months each year, from June 15 to November 15. 

The historic agreement enabled Nepal to export its power for the first time to a third country. Based on this agreement, Nepal exported electricity for 12 hours on November 15, 2024 which later was resumed on July 15 of this year.