Nepal starts commercial export of electricity to Bangladesh

Kathmandu, June 16: The government has started exporting 40 megawatts of electricity to Bangladesh through the Indian transmission line this year.

The Nepal Electricity Authority (NEA), which exported electricity to Bangladesh for the first time for 12 hours on November 15, 2024, through the Indian transmission line, has started exporting 40 megawatts of electricity again from June 15 this year.

On October 3, 2024, a tripartite power sales agreement was signed between Nepal Electricity Authority, NTPC Vidyut Vyapar Nigam (NVVN), India, and Bangladesh Power Development Board (BPDB) to export 40 megawatts of electricity from Nepal to Bangladesh using the Indian grid. As per this agreement, electricity was exported for only about 12 hours on November 15, 2024. 

At a press conference organised at the Ministry on Sunday, Minister for Energy, Water Resources and Irrigation Dipak Khadka said that it is good news that Nepal is exporting surplus electricity during the rainy season to Bangladesh along with India. 

He said that Nepal is the first country in South Asia to export electricity to a third country, and that the commercial sale of electricity to Bangladesh for the first time was a matter of great pride and joy for the country and its people.

He said that Nepal would earn more than Rs. 250 million per month by exporting 40 megawatts of electricity daily to Bangladesh, earning more than Rs. 1.25 billion in five months.

Nepal has been exporting surplus electricity to neighbouring India for five months every year during the rainy season. Last year, Nepal signed an electricity export agreement with Bangladesh and exported electricity for only 12 hours. This year, it will export electricity to Bangladesh for five months.

Last year, Nepal, India and Bangladesh signed an agreement to export 18.60 megawatts of electricity generated by the Nepal Electricity Authority from the Trishuli Hydropower Station and 21.40 megawatts from the Chilime Hydropower Project.

The electricity that has been exported to Bangladesh from Saturday will be exported until November 15, this year. 

According to the NEA, 146.88 million units of electricity will be exported to Bangladesh in five months.

The government will earn around USD 9.4 million (approximately Rs. 1.25 billion) in five months from the sale of the electricity. 

The sale rate of electricity exported as per the agreement is 6.40 US cents per unit. The electricity will reach from Nepal's 400 kV Dhalkebar substation via Muzaffarpur, Behrampur in India to Bheramara substation in Bangladesh.

Managing director of NEA Hitendradev Shakya said that Nepal has now entered the era of energy trade and will earn billions of rupees by exporting electricity to India and Bangladesh. 

He said, "There is no load-shedding now and there will be no more. Although the problem of frequent tripping has been seen because the electricity produced has started selling, it has been eliminated." 

He urged people not to have the illusion of load-shedding as there was a problem of tripping due to technical reasons in previous years, and it is gradually decreasing compared to last year.

Electricity export, which has a long-term importance in the energy sector, is expected to contribute to Nepal's energy balance, maximum production and utilisation of Nepal's hydropower, and the country's economy.

According to the concept of the government's Energy Development Roadmap-2081, it has set a target of producing 28,500 MW of electricity and exporting 15,000 MW of electricity by 2035.

Electricity export to India continues

The NEA has continued exporting electricity to India. The Authority has already started exporting electricity to the Indian state of Haryana.

The NEA, which has been exporting 185 MW of electricity since June 1, has started exporting 200 MW of electricity to the same location from Saturday (June 14). As per the bilateral agreement between Nepal and India, the selling rate of electricity export is 5.25 Indian rupees per unit.

Similarly, the NEA has also started exporting 80 MW of electricity to the state of Bihar, India, from midnight Sunday.