Nepal Begins Electricity Export to Bangladesh

November 16, 2024

Nepal has recently initiated the export of electricity to Bangladesh via India’s electricity grid and development took place on November 15, 2024. The ceremony was attended by key officials from Nepal, Bangladesh, and India. The power flow is anticipated to enhance sub-regional connectivity in the power sector.

Background of the Agreement

The tripartite power sales agreement was signed on October 3, 2024. This agreement involved NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority, and Bangladesh Power Development Board (BPDB). The agreement aims to facilitate electricity trade among the three nations.

Nepal’s Hydro Power Potential

Nepal possesses vast untapped hydropower resources. The country has been advocating for cross-border electricity cooperation. This export marks a very important step towards realizing Nepal’s hydroelectric potential. It aligns with Kathmandu’s goal of becoming a regional power hub.

Current Energy Crisis in Bangladesh

Bangladesh is currently facing an electricity crisis. The situation worsened after the suspension of power supply from Adani’s Godda plant. This disruption has heightened the need for alternative energy sources. The introduction of Nepalese electricity is seen as a timely solution to this crisis.

Details of the Power Supply

The initial power supply from Nepal to Bangladesh is set at 40 MW. This export is part of the trilateral arrangement established during former PM Pushpa Kamal Dahal’s visit in May 2023. The agreement aims to enhance energy cooperation among the three countries.

Nepal’s Minister of Energy, Dipak Khadka, brought into light the significance of this development. He referred to it as a milestone in energy alliance among the three nations. He emphasised the potential for industrial growth and regional prosperity through this green energy initiative.

Political Context in Bangladesh

Political instability in Bangladesh has exacerbated the electricity shortage. A recent petition in the High Court seeks to review the agreement with Adani. Critics argue that the deal could lead to increased electricity prices for consumers.

Future Prospects

The introduction of hydroelectricity from Nepal is expected to be cost-effective. Officials in Bangladesh advocate for leveraging Nepal’s proximity for energy imports. The collaboration aims to stabilise the electricity supply and promote regional energy security.

Conclusion

This electricity export marks a new chapter in regional energy cooperation. It showcases the potential for enhanced connectivity and economic growth among neighbouring countries.

Important Facts for Exams:
NTPC Vidyut Vyapar Nigam – This Indian company facilitates electricity trading. It plays important role in cross-border power transactions. The company aims to enhance energy cooperation in South Asia.
Pushpa Kamal Dahal – He served as Nepal’s Prime Minister. His leadership focused on energy cooperation with neighbouring countries. Dahal’s visit in 2023 was very important for the trilateral power agreement.
Hydroelectricity – This renewable energy source is derived from water flow. Nepal has important hydroelectric potential. The country aims to become a regional power hub through hydroelectric development.

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