Preliminary agreement on supplying power from Nepal to Bangladesh, 40 MW to be exported in first phase

Kathmandu: A multi-party agreement requiring to facilitate the supply electricity from Nepal to Bangladesh has been reached.

According to government officials, Nepal has defined the deal as a ‘preliminary agreement’ with Nepal, India, and Bangladesh parties to it. The Ministry of Energy, Water Resources and Irrigation said in the initial phase, Bangladesh is set to purchase 40 megawatts of electricity from Nepal.

According to people concerned, while the 40 MW is not a substantial volume, the decision is significant because of its symbolic value. The agreement to export Nepal’s electricity to the third country is itself a significant one, according to them.

Ganesh Karki, the President of the Independent Power Producers’ Association, Nepal is among those assessing the agreement as a noteworthy achievement. The transmission of Nepal’s power to Bangladesh will be facilitated through India’s NVVN, which has been designated as the nodal agency by the Indian government.

Nepal Electricity Authority’s Prabal Adhikari stated that the preliminary agreement on the power supply to Bangladesh had been reached by email exchanges among the three countries. Some pending issues regarding the agreement are expected to be finalized shortly.

It has been agreed to sign the document in the physical presence of officials from the respective countries soon. It is expected to take place shortly. Bangladesh in its strategic plans aims to purchase 9,000 megawatts of electricity from Nepal by 2040.

Bangladesh which is in the pursuit of clean energy has expressed its interest in investing in some important projects in Nepal as well. It is noted the fifth meeting of the Nepal-Bangladesh energy secretary-level joint steering committee held in Bangladesh on May 16 decided to establish the power trade relations between the two countries.

The meeting also agreed to proceed ahead for the execution of the agreement among the NEA, NTPC Vidyut Vyapar Nigam, Ltd of India, and the Bangladesh Power Development Board. Nepal has proposed to finalize the agreement by the last week of August.

It, as a token of the establishment of bilateral power trade relations, targets to supply monsoon-generated electricity to Bangladesh. A joint secretary at the energy ministry said preparations towards that end have been intensified.