India, Nepal and Bangladesh sign historic trilateral agreement for electricity export
- In Reports
- 03:26 PM, Oct 04, 2024
- Myind Staff
India, Nepal, and Bangladesh have signed a historic trilateral agreement to export electricity from Nepal to Bangladesh through India’s power grid. The deal, finalised in Kathmandu on Wednesday, marks the first time Nepal will sell electricity to Bangladesh, as it has only been exporting power to India until now.
Under this new arrangement, Bangladesh will import 40 megawatts of electricity from Nepal. Since Nepal and Bangladesh do not share a direct transmission line, India will play a key role by allowing its power grid to be used to transfer electricity between the two countries. Nepal will send the electricity to India via the Dhalkebar-Muzaffarpur transmission line, and India will then transmit the same amount of power to Bangladesh.
The Nepal Electricity Authority (NEA), responsible for overseeing the export, will measure the amount of energy sent to India at the Muzaffarpur point. According to NEA estimates, Nepal is expected to earn approximately 330 million Nepali rupees through this energy sale.
This agreement highlights a growing collaboration between the three countries in the energy sector. Nepal, which has been producing surplus electricity through its hydropower projects, is now able to diversify its export market by reaching Bangladesh, with India acting as the connecting link.
In addition to this electricity trade agreement, Nepal and Bangladesh also discussed future energy projects. Both nations agreed to work with India on developing the Sunkoshi-3 hydropower project. This project will be built in a joint venture involving all three countries, and further details are expected to be finalised in upcoming meetings.
Another key outcome of the discussions was the decision to carry out a technical and financial feasibility study for a new cross-border transmission line between Nepal and Bangladesh. This would allow for direct energy trade between the two nations in the future, further strengthening regional cooperation in the energy sector.
This trilateral agreement not only represents a significant step for regional energy cooperation but also opens the door for more such collaborations between the three South Asian neighbours in the future.
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