India, Nepal, and Bangladesh Sign Landmark Energy Trade Agreement for Electricity Exports

By siliconindia  |  Friday, 04 October 2024, 09:08:29 AM IST

India, Nepal, and Bangladesh Sign Landmark Energy Trade Agreement for Electricity Exports
In a significant development for regional energy cooperation, India, Nepal, and Bangladesh have signed a tripartite power sales agreement (PSA), marking the first cross-border electricity trade pact of its kind. Under this agreement, Nepal will export 40 MW of electricity to Bangladesh through the Indian grid during the initial phase, from June 15 to November 15.
 
The arrangement will involve India facilitating the transfer of electricity from Nepal to Bangladesh, as announced during the signing ceremony. The agreement was executed between the Nepal Electricity Authority (NEA), the Bangladesh Power Development Board (BPDB), and NTPC Limited, India's leading power generation company.
 
With this trade pact, the official route for exporting electricity from Nepal to Bangladesh has now been established. Nepal has already been exporting electricity to India for the past three years.
 
The signing took place in the presence of key officials, including Nepal's Minister for Energy, Water Resources, and Irrigation, Dipak Khadka; Bangladesh's Minister for Forest, Environment, Climate Change, and Water Resources, Syeda Rizwana Hasan; and Indian Ambassador to Nepal, Naveen Srivastava.
 
According to NEA officials, the agreed rate for the electricity is set at 6.4 cents per unit, which will generate approximately $9.2 million in annual revenue for Nepal. The electricity will be transmitted to Bangladesh via the Dhalkebar-Muzaffarpur 400 kV line, with metering taking place in Muzaffarpur.
 
Previously, in December of last year, Bangladesh's Cabinet Economic Affairs Committee had approved the import of 40 MW from Nepal. The signing of the pact, originally scheduled for July, was delayed due to political changes in Bangladesh.

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