Wednesday, May 17, 2023

Nepal and Bangladesh are set to sign a power sales agreement for the purchase of 40 MW of electricity



The export of electricity from Nepal to Bangladesh requires the utilization of transmission lines in India, making India's consensus crucial in the matter. To address this, discussions were held during the meeting regarding the construction of dedicated transmission lines connecting Nepal and Bangladesh.


Furthermore, the meeting decided to assign a Joint Technical Team to study the potential need for international transmission lines between Nepal, India, and Bangladesh within a six-month period. This study aims to explore the feasibility of importing electricity from Nepal through international transmission lines.


In addition, the secretariat-level meeting between Nepal and Bangladesh agreed to sign a Joint Venture Agreement within six months for the construction of the Sun Koshi-3 Hydropower Project, which will involve combined investment.


The Ministries of Power Energy and Mineral Resources of Bangladesh, as well as Energy, Water Resources, and Irrigation of Nepal, have decided to initiate discussions with India to establish tripartite executive coordination. This coordination will cover the sale/purchase of electricity, the construction of international transmission lines, and cooperation in the energy sector.


Previously, in Shrawan 2077 (July-August 2020), the Nepalese government approved the Nepal Electricity Authority's sale of excess electricity to neighboring India and Bangladesh, as Nepal's electricity production exceeded domestic consumption.


Bangladesh, known primarily as a leading manufacturer of textile products, has experienced rapid economic growth, leading to an increased demand for energy. Importing electricity to Bangladesh holds significant importance due to the potential for greater demand from Bangladesh in the near future.