Nepal to export electricity to Bangladesh under tripartite agreement

Kathmandu: Bangladesh Power Development Board (BPDB) has officially accepted Nepal Electricity Authority’s (NEA) bid to purchase 40 megawatts (MW) of electricity for the upcoming monsoon season. The agreement, set to span five years, marks a significant step in regional energy cooperation.

The correspondence, issued on Monday, confirms BPDB’s approval of NEA’s bid submission, adhering to the provisions set forth under a tripartite agreement involving entities from Bangladesh, India, and Nepal. Initiated on January 1, 2024, the tender called for bids to purchase electricity generated in Nepal, focusing on the monsoon period annually.

Kulman Ghising, Managing Director of NEA, expressed confidence in finalizing the power sale agreement promptly. “The draft of the tripartite electricity sales agreement has been mutually agreed upon, facilitating swift finalization,” Ghising stated. The agreement will encompass NEA, NTPC Vidyut Vyapar Nigam (NVVN) of India, and BPDB.

NEA plans to export electricity produced by the 25 MW Trishuli and 22 MW Chilime hydropower projects, both funded by India and approved for export. The export rate has been set at 6.40 US cents per unit, applicable for five years from June 15 to November 15 annually.

The electricity will traverse through the Dhalkebar-Muzaffarpur 400 kV transmission line, with pricing set at Muzaffarpur. Bangladesh will cover transmission costs, including technical losses, and trading margins, ensuring a seamless energy transfer.