In a significant milestone for regional energy cooperation, Nepal has commenced exporting electricity to Bangladesh using Indian transmission infrastructure. This marks the first instance of Nepal trading power with a third country.
The export of 40 megawatts (MW) of electricity follows a historic trilateral agreement signed on October 3 by the Nepal Electricity Authority (NEA), Bangladesh Power Development Board (BPDB), and India’s NTPC Vidyut Vyapar Nigam (NVVN). The agreement enables Nepal’s hydroelectric power to reach Bangladesh via India’s cross-border grid.
The virtual inauguration of the energy export took place on Friday, attended by Nepal’s Energy, Water Resources, and Irrigation Minister Deepak Khadka; India’s Power, Housing, and Urban Affairs Minister Manohar Lal Khattar; and Bangladesh’s Energy Advisor Muhammad Fouzul Kabir Khan.
Minister Khadka described the event as a landmark achievement symbolizing shared aspirations for a sustainable and interconnected energy future. “This milestone reflects our collective vision for sustainable and regional energy integration,” he said.
India’s Ministry of External Affairs hailed the deal as a significant step toward enhancing sub-regional energy connectivity. “The flow of power from Nepal to Bangladesh through India is expected to strengthen regional connectivity in the energy sector,” stated the ministry.
The electricity is transmitted via the 400 kV Dhalkebar-Muzaffarpur line in India, which then relays the power to Bangladesh. Although the initial export lasted from Friday afternoon to midnight, Nepal and Bangladesh have agreed to trade electricity from June 15 to mid-November annually. This short-term export marks the beginning of the tripartite agreement’s implementation.
The NEA estimates that this arrangement will generate annual revenue of approximately NPR 330 million and marks Nepal’s first electricity export deal conducted in US dollars.
Bangladeshi officials, including Energy Advisor Syeda Rizwana Hasan, emphasized the importance of Nepal’s hydropower in addressing Bangladesh’s renewable energy requirements. Hydropower currently constitutes only 1% of Bangladesh’s energy mix, and this agreement is seen as a crucial step toward diversifying and greening its energy portfolio.
The deal is expected to pave the way for deeper energy integration in South Asia, with potential for more extensive collaboration in the future. For Nepal, which once grappled with severe energy shortages, this export represents a transformative step. Increased electricity production, driven by both the NEA and private investors, has positioned the country as a growing energy exporter.
In the first phase, power from Nepal’s Trishuli (25 MW) and Chilime (22 MW) hydropower projects will be exported. Over the long term, Bangladesh aims to import 9,000 MW of electricity from Nepal by 2040 as part of its energy strategy to boost renewable energy and achieve carbon neutrality.
India, serving as a crucial conduit for this trade, has played a key role in facilitating infrastructure and connectivity. The NEA, in collaboration with Indian and Bangladeshi counterparts, has been expanding transmission networks to support cross-border energy trade.
This historic agreement marks the beginning of a new chapter in South Asia’s energy landscape, positioning Nepal as a significant hydropower exporter and fostering regional cooperation to achieve sustainable energy goals.
