New Era of Energy Cooperation: Nepal Begins Electricity Export to Bangladesh via India | (Fri 15 Nov 2024 23:24)

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Nepal Begins Exporting Electricity to Bangladesh via India

On November 15, 2024, Nepal started exporting electricity to Bangladesh using India’s power grid, marking a major step in regional energy cooperation and connectivity. This initiative comes under a tripartite power sales agreement signed on October 3, 2024, involving:

• Nepal Electricity Authority (NEA)

• Bangladesh Power Development Board (BPDB)

• India’s NTPC Vidyut Vyapar Nigam (NVVN)

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• Nepal, rich in untapped hydropower resources, aims to become a regional energy hub.

• The export of electricity represents a milestone in cross-border energy trade and a practical realization of Nepal’s hydropower potential.

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• Bangladesh is currently experiencing a power shortage, intensified by the halt in electricity supply from Adani’s Godda plant in India.

• Nepal’s electricity is a timely intervention, helping alleviate the shortage and stabilize the energy supply.

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• The initial export volume is 40 megawatts (MW).

• This flow stems from diplomatic and trade efforts initiated during former Nepalese Prime Minister Pushpa Kamal Dahal’s visit to Bangladesh in May 2023.

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• Political instability has compounded the power crisis.

• A petition is pending in Bangladesh’s High Court to review the agreement with Adani, amid concerns over rising electricity prices.

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• Nepalese hydropower is expected to be a cost-effective and reliable energy source for Bangladesh.

• The agreement promotes energy security, economic cooperation, and regional integration across South Asia.

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• NTPC Vidyut Vyapar Nigam (India): Facilitates the cross-border electricity transaction.

• Pushpa Kamal Dahal (Nepal): Instrumental in initiating the trilateral agreement.

• Hydroelectricity: Central to Nepal’s long-term export strategy and regional influence.

Nepal’s export of electricity to Bangladesh via India is a landmark development in South Asian energy cooperation. It not only helps address immediate energy shortages in Bangladesh but also strengthens regional connectivity, positioning Nepal as a key player in the region’s clean energy future.