Nepal Begins Electricity Export to Bangladesh for the First Time

Nepal has officially started exporting electricity to Bangladesh in 2024, marking a historic milestone in the South Asian regional energy trade. Senior officials from Nepal, India, and Bangladesh jointly inaugurated this trade through a virtual ceremony.

Nepal is exporting electricity to Bangladesh via the Dhalkebar–Muzaffarpur 400 kV transmission line, which delivers power to Muzaffarpur substation in India. From there, the electricity is transmitted to Bangladesh using the Baharampur (India)–Bheramara (Bangladesh) transmission line. This initiative represents a significant step in strengthening regional cooperation and energy trade.

For the first time, Nepal is earning revenue in U.S. dollars through electricity exports. Bangladesh is purchasing 40 MW of electricity at a rate of 6.40 U.S. cents per unit, which will generate approximately $28,000 (around NPR 3.8 million) daily in revenue for Nepal. This income is expected to provide a substantial boost to Nepal's hydropower sector.

Key Highlights of the Agreement

• Nepal will export 40 MW of electricity to Bangladesh for six months annually during the monsoon season, from June 15 to November 15.

• Nepal will bear transmission losses up to Muzaffarpur in India, while Bangladesh will cover all subsequent charges, including taxes and fees.

• The agreement is set to last for five years, with the potential for further expansion.

This development opens new doors for Nepal's hydropower sector, enabling access to international markets and attracting potential investments. Additionally, it strengthens diplomatic relations between Nepal, India, and Bangladesh, fostering greater regional integration.

The electricity export to Bangladesh is a landmark achievement for Nepal. Beyond economic benefits, it showcases Nepal's growing role in the regional energy trade and highlights the potential of its hydropower sector. This collaboration sets a precedent for enhanced regional cooperation and paves the way for a brighter energy future for Nepal.