Is Nepal Now Exporting Electricity to Bangladesh via India's Power Lines?
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Synopsis
Nepal Electricity Authority has restarted the export of electricity to Bangladesh after a significant agreement with India’s NTPC. This collaboration promises substantial revenue during Nepal's rainy season, showcasing the growing energy ties in the region. Find out how this impacts both nations in our detailed coverage.
Key Takeaways
- Nepal resumes electricity exports to Bangladesh through India.
- A tripartite agreement was signed in 2023.
- The export duration is from June 15 to November 15.
- Expected revenue is around Rs 129 crore.
- Electricity will be transmitted via India's infrastructure.
Kathmandu, June 15 (NationPress) - The Nepal Electricity Authority (NEA) has officially resumed the export of 40 megawatts (MW) of electricity to Bangladesh utilizing India’s power transmission infrastructure.
This renewed export activity follows a tripartite agreement established in 2023 involving the NEA, the Bangladesh Power Development Board (BPDB), and India’s NTPC Vidyut Vyapar Nigam Limited (NVVN).
As per the agreement, the NEA is set to export electricity to Bangladesh for a duration of five months—from June 15 until November 15—which corresponds with Nepal's peak electricity production season during the rainy months. NEA Deputy Manager Subarna Sapkota from the Electricity System Control Department mentioned that approximately 146.88 million units of electricity will be exported, yielding an expected revenue of around Rs 129 crore. The established export rate is 6.40 US cents per unit. Bangladesh is committed to importing electricity from Nepal for the next five years.
The electricity will be transmitted from Nepal’s 400 kV Dhalkebar Substation, passing through Muzaffarpur and Behrampur in India, before reaching the Bheramara Substation in Bangladesh.
The NEA confirmed that the export resumed at midnight on Saturday after Bangladesh successfully opened a letter of credit (LC), facilitating the transaction.
“We initiated the export of 40 MW from Saturday night,” stated NEA Executive Director Hitendra Dev Shakya.
Previously, there were uncertainties regarding Nepal’s plan to export 40 megawatts to Bangladesh starting June 15, as the opening of the letter of credit was delayed.
On November 15 of the previous year, India’s Power Minister Manohar Lal, Nepal’s Energy Minister Deepak Khadka, and Bangladesh’s Energy Ministry advisor Muhammad Fouzul Kabir Khan jointly inaugurated the electricity exports to Bangladesh. On that occasion, 470,000 units of electricity were sold, generating a revenue of $30,080.
Additionally, the NEA also exports electricity to India, having commenced supply of 185 MW to Haryana on June 1, which has since increased to 200 MW. In line with the bilateral agreement, the electricity is being sold at a rate of Rs 5.25 per unit.
Point of View
It is vital to recognize that Nepal's renewed electricity exports to Bangladesh signify a strategic advancement in regional cooperation. This agreement not only enhances Nepal's energy revenue but also fosters a stronger partnership with neighboring countries, indicating a progressive step towards energy security and economic development.
NationPress
15/06/2025
Frequently Asked Questions
What is the duration of the electricity export agreement?
The electricity export agreement between NEA and Bangladesh lasts for five months, from June 15 to November 15.
How much electricity will Nepal export to Bangladesh?
Nepal plans to export a total of 146.88 million units of electricity during the agreement period.
What is the export rate for electricity?
The export rate has been set at 6.40 US cents per unit.
Through which countries will the electricity be transmitted?
The electricity will be transmitted through India, specifically from Nepal’s Dhalkebar Substation to Bangladesh's Bheramara Substation.
Is there a long-term commitment from Bangladesh?
Yes, Bangladesh has agreed to import electricity from Nepal for the next five years.
