Tripartite agreement signed for power export to Bangladesh via India

KATHMANDU: Nepal Electricity Authority (NEA), Bangladesh Power Development Board (BPDB), and NTPC Vidyut Vyapar Nigam (NVVN) signed a tripartite agreement, paving the way for the export of hydropower to Bangladesh via India.

NEA Executive Director Kulman Ghising, BPDB President Md Rezul Karim, and NVVN CEO Renu Narang signed the agreement on behalf of their respective institutions in Kathmandu on Thursday.

The agreement will be in effect for five years.

Minister for Energy, Water Resources, and Irrigation, Deepak Khadka; Minister for Forest, Environment, Climate Change, and Water Resources of Bangladesh, Saiyada Rizwana Hassan; and Indian envoy to Nepal Navin Srivastava were also present on the occasion.

To begin with, Bangladesh will import 40 MW of energy from Nepal via India. However, NEA is hopeful of exporting 5,000 MW to Bangladesh in the long run.

Speaking on the occasion, Ghising said the agreement is a milestone in energy cooperation in South Asia. “This is the result of our common vision. It will open doors for regional and sub-regional cooperation in the coming days,” he added.

NEA will supply 40 MW via the Dhalkebar-Muzaffarpur cross-border transmission line. NVVN will supply energy to India via the Bahrampur-Bheramara transmission line. Energy will be exported to Bangladesh for six months – from June 15 to November 15.

As per the agreement, NEA will bear technical losses up to Muzaffarnagar, while Bangladesh will bear other losses incurred thereafter. Bangladesh will pay Nepal 6.4 cents, approximately Rs 8.64 per unit, for the energy. The wheeling charge for using NVVN’s transmission infrastructure will be paid by BPDB.

Nepal and Bangladesh have agreed to form a joint venture to build Sunkoshi 3 Hydropower Project (536 MW) for energy export to Bangladesh.