A promising start

The export of 40MW of electricity to Bangladesh could herald a sea-change in power trade.

Nepal’s hydroelectric potential is huge, with an estimated capacity of 40,000 megawatts. Nonetheless, the country has been unable to realise even a fraction of its potential due to limited market access and an unfavourable political climate. As a result, currently, the country generates just around 3,000 megawatts. The recent power trade with Bangladesh through India’s grid, however, could mark a turning point. Under the deal, yearly, 40 MW of electricity will be exported to Bangladesh for five years, from June 15 to November 15. This follows a tripartite agreement between the NTPC Vidyut Vyapar Nigam, the Nepal Electricity Authority and the Bangladesh Power Development Board on October 3, 2024. The export, initially envisioned in 2018, was finally inaugurated on Friday.