Nepal has achieved a historic milestone by starting its first-ever electricity export to Bangladesh through India’s power grid. The power flow was inaugurated on Friday by Indian Union Minister for Power and Housing, Manohar Lal, Nepal’s Minister of Energy, Water Resources and Irrigation, Dipak Khadka, and Bangladesh’s Energy Adviser, Fouzal Kabir Khan.
The initiative marks a significant step in enhancing sub-regional connectivity in the energy sector. “This is a sign of an energy alliance among India, Bangladesh, and Nepal,” said Nepal’s Energy Minister Khadka, adding that the export of 40 MW of electricity under the Tripartite Power Sales Agreement promises industrial growth and regional prosperity.
Tripartite Agreement Makes Power Exchange Possible
This landmark power transfer was made possible by a tripartite agreement signed on October 3 in Kathmandu between NTPC Vidyut Vyapar Nigam (India), Nepal Electricity Authority (NEA), and Bangladesh Power Development Board (BPDB). The agreement follows decisions made during former Nepal Prime Minister Pushpa Kamal Dahal’s visit to India in mid-2023 to facilitate cross-border electricity trade.
Bangladesh’s Electricity Crisis Worsens
The power supply comes at a critical time for Bangladesh, which is grappling with an energy crisis. The suspension of electricity from Adani’s Godda power plant, along with the maintenance shutdown of the Payra thermal unit, has exacerbated the situation. Additionally, political instability has added to Bangladesh’s energy woes.
The move to import Nepalese hydroelectricity has been widely welcomed in Bangladesh. Chief Adviser Mohammad Yunus emphasized the benefits, stating, “Nepalese hydroelectricity is not only cheap but also geographically accessible.” Yunus advocated for deeper regional cooperation, proposing the creation of a South Asian power grid involving Nepal, India, Bhutan, and Bangladesh.
Challenges and Opportunities
The supply of green energy from Nepal aligns with the broader goals of industrial growth and sustainable development in the region. However, the situation in Bangladesh remains tense. A petition filed in the High Court by Barrister M. Abdul Qayum seeks to review or cancel the country’s agreement with the Adani Group, citing concerns about high electricity costs for consumers.
With the successful start of this power transaction, South Asia has taken a step closer to regional energy integration, unlocking the potential for further collaboration in harnessing renewable energy resources.