Bangladesh expresses eagerness to increase its electricity purchase from Nepal as the two nations finalize a 40 MW power deal, according to Bangladesh Ambassador to Nepal Salahuddin Noman Chowdhury on Tuesday.
In a bilateral meeting last May, both countries agreed to explore the export of power to Bangladesh through India’s transmission infrastructure in the upcoming wet season. During Prime Minister Pushpa Kamal Dahal’s visit to India in May and June, a commitment was made to facilitate the export of 40 MW of electricity to Bangladesh.
Presently, negotiations are underway between Nepal and Bangladesh to finalize terms and conditions, including tariffs, for the power deal. However, Ambassador Chowdhury conveyed that Bangladesh is keen to acquire more clean energy from Nepal.
Speaking at an interaction organized by the Centre for Social Inclusion and Federalism, Ambassador Chowdhury emphasized that Bangladesh’s current power generation falls short of meeting the increasing demand, presenting an opportunity for Nepal to bridge the gap.
Bangladesh presently produces approximately 25,000 MW of electricity against a demand exceeding 30,000 MW. Ambassador Chowdhury stated, “If Nepal provides us with 3,000 MW to 4,000 MW of power immediately, we can fully utilize the supply.”
However, Nepal’s current capacity is limited to around 3,000 MW, prompting the country to plan significant power generation expansion in the next decade. The Ministry of Energy, Water Resources, and Irrigation is developing a long-term plan to produce over 28,000 MW of electricity by 2035, with an aim to export around 5,000 MW to Bangladesh by that time.
Despite the potential for cooperation, the role of India is crucial due to its geographical location between Nepal and Bangladesh. Ambassador Chowdhury emphasized the need for dedicated transmission lines between Nepal and Bangladesh, calling for India’s involvement in their construction.
While there is concern about India’s comfort with a dedicated power line that bypasses its control, Ambassador Chowdhury proposed that the BBIN (Bangladesh, Bhutan, India, Nepal) sub-regional mechanism could be an ideal forum to address such issues.
Additionally, Ambassador Chowdhury suggested that power trade agreements between Nepal and Bangladesh should include a guarantee clause for the future demand and supply of power. He emphasized the importance of eliminating uncertainty and unpredictability in the power trade relationship between the two countries.
