Preliminary agreement to export hydropower to Bangladesh reached

KATHMANDU: A multi-party agreement aimed at facilitating the supply of electricity from Nepal to Bangladesh has been reached successfully.

As per the preliminary agreement reached between Nepal, India, and Bangladesh, Bangladesh will be purchasing 40 megawatts of electricity from Nepal, government officials say.  While the quantity may not look substantial, officials of the Ministry of Energy, Water Resources, and Irrigation have termed the agreement a major development in regional energy trade.

Prabal Adhikari of Nepal Electricity Authority said the preliminary agreement was reached through email exchanges among the three countries. A formal signing of the document is expected to take place soon. Nepal is hopeful of finalizing the agreement by this month.

Ganesh Karki, President of the Independent Power Producers Association of Nepal, terms the agreement as a notable accomplishment.

Indian entity, NTPC Vidyut Vyapar Nigam (NVVN), will facilitate the transmission of energy on Indian soil, while Nepal Electricity Authority (NEA) and Bangladesh Power Development Board (BPDB) are the nodal agencies in Nepal and Bangladesh, respectively.

Bangladesh’s strategic plan involves importing 9,000 megawatts of electricity from Nepal by 2040.

Nepal and Bangladesh reached an understanding to establish power trade relations during the energy-secretary-level meeting of the two countries held in Bangladesh on May 16.

Bangladesh has also begun preparation to buy 500 MW generated by the Upper Karnali Hydropower Project (900 MW). Dhaka is also eager to develop Sunkoshi Hydropower Project (683 MW) in Nepal by forming a joint venture with NEA.

(With inputs from RSS)