metabets Nepal, India, And Bangladesh Sign Historic Cross-Border Electricity Trade Deal
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In a landmark move towards regional energy cooperation, Nepal, India, and Bangladesh signed a tripartite agreement on October 3 in Kathmandumetabets, to enable cross-border electricity trade. This deal allows Nepal to export its excess hydroelectric power to Bangladesh through India's transmission network, marking a significant step in South Asian energy collaboration.
The agreement, which had been in the works for some time, permits Nepal to supply excess electricity to Bangladesh during the rainy season, specifically from June 15 to November 15 each year. In the initial phase, Nepal will export 40 megawatts (MW) of electricity to Bangladesh, using the Dhalkebar-Muzaffarpur 400 kV transmission line, that passes through Indian territory. The electricity will be measured at a metering point in Muzaffarpur, India, and the export rate has been fixed at 6.4 cents per unit. Through this deal, Nepal is projected to earn an estimated USD 9.2 million annually.
This agreement is a significant achievement for Nepal, India, and Bangladesh, as it strengthens not only their economic ties but also their energy security. Nepal, with its abundant hydropower resources, can now make good use of its surplus energy effectively. While Bangladesh which has rishing energy needs, can benefit from an additional and renewable power source. India, playing a crucial role as the transit country, facilitates the transmission of power and enhances regional connectivity.
The agreement was initially scheduled to be signed on July 28 but was postponed due to political changes in Bangladesh. Despite the delay, energy officials from all three nations engaged in detailed discussions in Kathmandu in the days leading up to the signing. Meetings between energy secretaries and joint-secretaries from Nepal, India, and Bangladesh helped finalize the details of the agreement.
The memorandum of understanding (MoU) was signed by key officials, including Nepal Electricity Authority (NEA) Executive Director Kulman Ghising, NTPC Vidyut Byapar Nigam CEO Deino Naran from India, and Bangladesh Power Development Board Chairman Mohamad Rizwan Karim. The signing ceremony was also attended by Nepal’s Energy Minister Dipak Khadka and Bangladesh’s Energy Minister Sayeda Rijwana Hasan.
This agreement sets the stage for further collaboration in the region, with potential for increased energy trade in the future. It also highlights the importance of utilizing regional resources to meet growing energy needs while promoting sustainable and renewable energy solutions across South Asia.
(This article is a reworked version of a PTI feed)metabets