Nepal Sends Electricity to Bangladesh via India, Boost to Sub-Regional Connectivity

When the world stage is witnessing multiple conflicts based on ethnicity and land, the three South Asian countries have shown their synergy in solving the problem of electricity. Nepal announced the export of electricity to Bangladesh via the Indian power grid for the first time, on 15th Nov, 2024. This tripartite arrangement has been planned for almost 2 years and aims to forge energy connectivity between the three nations. This joint venture was inaugurated by Union Power Minister Manohar Lal, Bangladesh de factor Power Minister Mohammed Fouzal Kabir Khan and Nepal’s Energy Minister Deepak Khadka in a virtual event hosted by Nepal’s Ministry of Energy, Water, Resources and Irrigation.

The talks have been on since 2022, following a long-standing request from the Nepal side to use India’s national power grid for exporting electricity to Bangladesh. This power trade agreement is the first of its kind in the entire South Asia. “The historic occasion marks the first trilateral power transaction which has been carried out through the Indian grid.”, said the Indian external affairs ministry in its official statement to the press. 

Nepal Premier’s Visit to India

The former Nepalese premier Pushpa Kamal Dahal ‘Prachanda’ visited New Delhi in May-June 2023, during which the Indian government announced its decision to facilitate a trilateral power transaction from Nepal to Bangladesh through the Indian power grid. As per the deal announced then, the export of up to 40 MW of electricity will be facilitated in the initial stage. 

In Dahal’s visit to India, both countries committed to working towards a greater sub-regional corporation in energy, security, and trade. This was done to increase inter-linkage between regional economies and subsequently to extract mutual benefits from all regional stakeholders. This was followed by a formal power sales agreement signed in Kathmandu on October 3rd by three parties: India’s NTPC Vidyut Vyapar Nigam, the Nepal electricity authority and the Bangladesh Development Board. 

In a joint statement released after the formal agreement, the authorities stated that “The start of this power flow from Nepal to Bangladesh through India is expected to boost sub-regional connectivity in the power sector”. The daily newspaper Hindustan Times reportedly said that people familiar with the matter say that ‘Bangladesh will pay Nepal for the electricity import while the Indian side will receive a transit fee for the use of its national power grid’.

Expectations from Nepal

Nepal and Bangladesh are not connected with each other territorially and are separated by what is called the ‘Siliguri Corridor’, a 22 km stretch in the Indian state of West Bengal. And so, Nepal will transmit electricity through the 400KV Dhalkebar-Muzaffarpur line in India, the Kathmandu Post reported. The same channel will be used every year to transfer 144,000 MWh (megawatt-hour) of electricity to Bangladesh.

The need for the export of electricity to Bangladesh emerges just 1 per cent of the country’s total generation of 24,911 MW through hydroelectricity and only 2 per cent (459 MW) as renewable.  This amount clearly falls short of the actual;l electricity requirements of Bangladesh.

Like Bangladesh, many Himalayan countries fall short of electricity despite the huge potential of the mountain region because of the absence of any connecting grid between countries like Bhutan and Nepal, India, and Bangladesh. As Nepal produces an abundance of hydroelectric, up to 400,000 MW, it cannot only reduce its dependence on fossil fuels but can also export electricity to countries like Bangladesh and Nepal to boost its export-based earnings. This will also save Nepal by reducing its trade deficit, which is currently at a high value of Rs 1.44 trillion. “Bangladesh can easily bring hydroelectricity from Nepal as it is only 40 miles from Bangladesh. Nepalese hydroelectricity will also be cheap.”, said Prof Yunus to The Kathmandu Post. Professor Mohammad Yunus is the chief advisor of Bangladesh and also attended the Azerbaijan COP 29 meet, representing his country.