Breakthrough In Trilateral Energy Cooperation

In what may be a major breakthrough in regional energy trade, Nepal exported 40 megawatts of hydroelectricity to Bangladesh on November 15, using an Indian power grid. The export started at noon and came to an end at midnight. Nepal will resume power export from mid-June next year. The energy trade has commenced in accordance with a tripartite power sales agreement signed among the Nepal Electricity Authority (NEA), India’s NTPC Vidyut Vyapar Nigam, and the Bangladesh Power Development Board about one and a half months ago in Kathmandu. With the signing of this agreement, the tripartite power trading arrangement has come into force. The deal allows Nepal to export 40 MW of electricity to Bangladesh annually from June 15 to November 15, for five years. Under this deal, Bangladesh will pay Nepal for the electricity it imports and Indi will receive a transit fee for the use of its national power grid.