On November 15, 2024, Nepal officially began exporting electricity to Bangladesh through India’s electricity grid. The event was marked by a ceremonial launch attended by key officials from Nepal, Bangladesh, and India, signifying a milestone in sub-regional connectivity within the power sector.
The Agreement That Made It Possible
This initiative stems from a tripartite power sales agreement signed on October 3, 2024, involving:
- Nepal Electricity Authority (NEA)
- Bangladesh Power Development Board (BPDB)
- NTPC Vidyut Vyapar Nigam (NVVN), an Indian electricity trading company
The agreement was designed to facilitate cross-border electricity trade, laying the groundwork for enhanced energy cooperation among the three nations.
Nepal’s Untapped Hydropower Potential
Nepal boasts abundant hydropower resources, much of which remain untapped. The country’s rugged terrain and extensive river systems provide ideal conditions for generating clean, renewable energy. This electricity export represents a significant step in Nepal’s vision of becoming a regional power hub. It also underscores Kathmandu’s commitment to cross-border energy collaboration, aligning with its broader economic goals.
Bangladesh’s Energy Crisis and the Role of Nepal
Bangladesh is grappling with an energy crisis, exacerbated by the suspension of power supply from Adani’s Godda power plant in India. This disruption has intensified the need for alternative energy sources, making Nepal’s hydropower a timely and crucial addition to Bangladesh’s energy mix.
- Initial Power Supply: The current arrangement involves the supply of 40 MW of electricity from Nepal to Bangladesh.
- Economic and Industrial Impact: The introduction of cost-effective hydroelectricity is expected to stabilize energy supplies, reducing reliance on expensive imports and boosting industrial productivity.
Nepal’s Minister of Energy, Dipak Khadka, hailed this development as a milestone, emphasizing its potential to foster industrial growth and regional prosperity through green energy.
Political Challenges in Bangladesh
Political instability in Bangladesh has compounded its energy issues. A recent High Court petition sought to review the terms of the agreement with Adani, with critics voicing concerns over potential hikes in electricity prices. This makes the introduction of Nepalese electricity particularly significant, offering a more sustainable and cost-effective alternative.
Future Prospects for Regional Energy Cooperation
The trilateral electricity trade arrangement highlights the potential for deeper regional energy integration:
- Stabilizing Electricity Supply: With Nepal’s proximity and abundant hydropower resources, energy imports from Nepal could provide long-term stability for Bangladesh’s power grid.
- Economic Growth: Enhanced energy cooperation is poised to drive economic development and strengthen ties among South Asian nations.
Looking ahead, officials from all three countries see this collaboration as a model for regional energy security, paving the way for future agreements.
Key Takeaways
- NTPC Vidyut Vyapar Nigam (NVVN): This Indian company plays a vital role in facilitating cross-border electricity trade and fostering regional energy cooperation.
- Pushpa Kamal Dahal’s Role: As Nepal’s Prime Minister, Dahal’s 2023 visit to India laid the foundation for this historic trilateral agreement.
- Hydroelectric Potential: Nepal’s rivers offer immense opportunities for renewable energy development, strengthening its position as a clean energy provider in South Asia.
Summing Up
Nepal’s electricity export to Bangladesh through India marks a historic achievement in regional energy collaboration. It addresses pressing energy needs, promotes economic growth, and sets the stage for further integration among South Asian nations. This initiative exemplifies the transformative power of green energy alliances, fostering sustainability and prosperity across borders.