KATHMANDU: Nepal has achieved a major milestone in regional energy commerce by formally starting to export electricity to Bangladesh. All of this comes after Nepal, India, and Bangladesh inked a tripartite agreement on October 3. India gave its consent for Nepal to successfully send 40 megawatts of electricity to Bangladesh on Friday. In Kathmandu, Nepal's Ministry of Foreign Affairs hosted a ceremony to kick off this export of power.
The Nepal Electricity Authority (NEA) spokesperson, Chandan Kumar Ghosh, said that the export was able to go through without any problems because of India's clearance. Every year, the shipment will occur between June 15 and November 15, as per the agreement. Nepal is expected to continue supplying energy to Bangladesh with this window every year starting with this initial shipment in 2024.
The current export season ends on November 15 and will be followed by a break until the next year. Nepal hopes to send about NPR 33 million a month to Bangladesh via exporting electricity. During the five-month export period, 1.44 million megawatt-hours of electricity will be exported, generating a significant amount of revenue.
Over the length of the five-month export deal, Nepal may earn over 92 million US dollars since the electricity will be sold for 6.40 US cents per unit. India had to give its final approval, which caused the tripartite agreement that was reached earlier in October to be postponed.
Although it had taken six years to arrange, the agreement was finalized this year in a single day, according to Kulman Ghising, the Executive Director of the Nepal Electricity Authority, who expressed pleasure with the outcome. In contrast to its past practice of exchanging power with India in Indian rupees, Nepal is now selling electricity in U.S. dollars for the first time.
The 25 MW Trishuli and 22 MW Chilime hydropower facilities provide the electricity that will be exported to Bangladesh. India provides financial support to an NEA subsidiary that develops these projects. The authority to export electricity to India has already been given to both of these hydroelectric plants; the excess will now be sent to Bangladesh.
The 400 kV transmission line between Dhalkebar and Muzaffarpur, the first inland connection between Nepal and India, would be used to export electricity to Bangladesh. In Muzaffarpur, India, there will be a meter for measuring the exported electricity. Based on the readings from this meter, Nepal will be paid for the electricity that is supplied to Bangladesh.
Any technical losses between the transmission terminals at Dhalkebar and Muzaffarpur will be covered by the NEA. The regional power exchange will be completed when the electricity from Muzaffarpur is sent to Bangladesh via the 400 kV transmission line between Behrampur, India, and Bhedamara, Bangladesh.
As Nepal attempts to expand its electricity markets outside of India, this agreement represents a significant milestone in the country's energy export goals. Nepal's standing as a regional energy exporter is strengthened by the success of this export, which also creates opportunities for possible future deals with other nations in the area.
Bangladesh's economy benefits from this import of electricity since it gives it a new source of energy to meet its growing demands. The deal might strengthen ties between Bangladesh, India, and Nepal as part of a broader regional energy trade partnership.
The significance of regional infrastructure, like the transmission lines that link the nations, in promoting energy trade is further highlighted by this partnership. With the help of India, Nepal can efficiently export electricity to Bangladesh thanks to the Dhalkebar-Muzaffarpur line.
Nepal may eventually export more electricity to India and perhaps other countries like Bangladesh as its hydropower sector expands. This might help the country's economy grow by generating foreign dollars and making energy exports a steady source of income.
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