Bangladesh begins importing power from Nepal via Indian grid

Bangladesh has begun receiving 40 megawatts (MW) of electricity from Nepal under a trilateral power-sharing agreement involving India, marking a milestone in regional energy cooperation.
The electricity started flowing on Friday, according to reports published in various news agencies and online news portals in Bangladesh, India, and Nepal.
The agreement was officially inaugurated by Md. Fouzul Kabir Khan, Adviser to Bangladesh's Ministry of Power, Energy, and Mineral Resources; Haryana Chief Minister and Indian Minister for Power, Housing, and Urban Affairs Manohar Lal Khattar; and Nepal's Minister of Energy, Water Resources, and Irrigation Dipak Khadka.
The export that started Friday afternoon was scheduled to last only until Friday midnight.
The two sides have agreed to trade energy during the period from June 15 to mid-November.
The three countries worked to export energy for at least a day to start implementing the tripartite agreement for this season.
This is the first-ever trilateral power transaction facilitated through India's grid.
"Nepal's power will now reach Bangladesh via the Indian grid, marking the first trilateral power transaction," the Indian Ministry of External Affairs (MEA) stated on social media platform X.
The MEA further emphasised the development as a significant step toward enhancing sub-regional energy connectivity and setting a benchmark in the South Asian power sector.
The agreement to facilitate this power trade was initially announced during the visit of Nepal's former Prime Minister, Pushpa Kamal Dahal 'Prachanda,' to India from May 31 to June 3, 2023.
During the visit, both sides underscored their commitment to deepening sub-regional cooperation, particularly in the energy sector, to foster economic interlinkages for mutual benefit. A tripartite power sales agreement was signed last month in Kathmandu between NTPC Vidyut Vyapar Nigam (India), Nepal Electricity Authority (NEA), and the BPDB. Under this agreement, Nepal will transmit electricity to India via the 400 kV Dhalkebar-Muzaffarpur cross-border transmission line. India will then transfer an equivalent amount of electricity to Bangladesh.
According to NEA officials, the electricity rate has been set at 6.4 cents per unit, enabling Nepal to earn approximately $9.2 million annually from this export.
For Nepal, this is the first instance of exporting electricity in dollars.
However, BPDB officials noted that Bangladesh would incur higher costs-approximately Tk 8.50 per unit-due to its reliance on Indian trading firms and grids.