In a major breakthrough, Nepal has begun selling electricity to Bangladesh via India, starting Friday. Although the transmission of power from Nepal to Bangladesh was limited to just one day this season, it marks a historic moment, paving the way for a power trade deal with a third country, apart from India. Minister for Energy, Water Resources, and Irrigation Deepak Khadka; Minister for Power of India Manohar Lal; and Muhammad Fouzul Kabir Khan, adviser to the Ministry of Power, Energy, and Mineral Resources of the Interim Government of Bangladesh, virtually inaugurated the electricity export. The electricity from Nepal will be supplied to the Muzaffarpur substation in India via the Nepal-India cross-border 400 kV Dhalkebar-Muzaffarpur transmission line. From there, the power will be transmitted to Bangladesh through the Baharampur (India)-Bheramara (Bangladesh) 400 kV transmission line. This power trade with a third country, made possible by the generous cooperation of India, opens new avenues for Nepal to harness its green energy potential and gradually facilitate the powering of South Asia with renewable energy.
Bangladesh has long been keen to purchase electricity from Nepal, which has become a power-surplus country in recent years. Although Bangladesh has currently agreed to purchase only 40 MW from Nepal, this is a positive step toward strengthening bilateral economic relations between the two countries. Nepal, in turn, is eager to expand its cross-border energy trade beyond India, with Bangladesh offering a promising new market for its excess power. Nepal currently has an installed capacity of around 3,300 MW of electricity, with a goal to generate 5,000 MW by 2026. The surplus production of electricity provides an opportunity for Nepal to tap into the growing regional energy market. The export of power to Bangladesh marks a significant achievement in opening new avenues for cross-border energy trade. As a country experiencing rapid economic growth, Bangladesh has also expressed interest in investing in critical hydropower projects in Nepal. For instance, Bangladesh has initiated plans to invest in the 683 MW Sunkoshi 3 Hydropower Project. It is also in talks with the relevant authorities to purchase 500 MW of electricity to be generated by the 900 MW Upper Karnali Hydropower Project in western Nepal. This mutually beneficial power deal between Nepal and Bangladesh has the potential to contribute to regional economic integration and promote stability in South Asia.
Power Corridor: A New Dimension of India-Bangladesh Relations
Bangladesh, as part of its strategic plan, aims to purchase 9,000 MW of electricity from Nepal by 2040. Reports indicate that Bangladesh's electricity demand is expected to reach 34,000 MW by 2030, up from the current level of around 23,000 MW. With its limited domestic energy resources, Bangladesh heavily relies on imported fossil fuels, which adversely impact its energy security and contribute to carbon emissions. The energy cooperation between Nepal and Bangladesh is significant, given Bangladesh's goal of reducing its carbon emissions by 22% by 2030. The power deal implemented on Friday represents a step toward achieving that target. This regional power trade will bring numerous benefits, including enhanced energy security and deeper economic integration in the region. It also provides opportunities for both countries, with significant poverty-stricken populations, to achieve higher economic growth rates and improve living standards.
