Bangladesh, India, and Nepal initiate trilateral power trade

In a significant milestone, Bangladesh, India, and Nepal have formally initiated electricity transactions from Nepal to Bangladesh via the Indian grid, marking a new era in regional energy collaboration.

The power flow was jointly inaugurated on Friday by Indian Minister for Power and Housing and Urban Affairs Manohar Lal, Bangladesh’s Power, Energy, and Mineral Resources Adviser Md Fouzul Kabir Khan, and Nepalese Minister for Energy, Water Resources, and Irrigation Dipak Khadka. The event, hosted virtually by Nepal’s Ministry of Energy, Water Resources, and Irrigation, symbolized the first-ever trilateral power transaction facilitated through the Indian grid, according to a press release from India’s Ministry of External Affairs.

India’s decision to enable this landmark transaction, allowing the export of up to 40MW of electricity from Nepal to Bangladesh through its grid, was announced during former Nepalese Prime Minister Pushpa Kamal Dahal ‘Prachanda’s visit to India from May 31 to June 3, 2023. During the visit, both nations emphasized their commitment to enhancing sub-regional cooperation in the energy sector, fostering stronger economic ties for mutual benefit.

A tripartite power sales agreement involving NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority, and Bangladesh Power Development Board was subsequently signed on October 3, 2024, in Kathmandu, formalizing the framework for this power flow.

This initiative is expected to significantly strengthen sub-regional connectivity in the power sector, fostering greater integration and collaboration between the three nations.