Bangladesh signing a PPA with GMR and NVVN to purchase 500 MW of electricity

Kathmandu; Bangladesh is signing a power purchase agreement (PPA) with Indian companies GMR Karnali Hydropower Company Limited and NTPC Vidyut Vyapar Nigam (NVVN) to buy 500 MW of electricity by the next month.

In the joint steering committee (JSC) meeting of both the countries held on Thursday, the Bangladeshi side expressed its commitment to sign a PPA with the Indian companies, according to the Ministry of Energy, Water Resources and Irrigation. The PPA is sought to be a strategic move to carry out cross-border energy trade between Nepal and Bangladesh. Bangladesh has been consistently expressing its interest in purchasing electricity from Nepal.

The Thursday meeting also reached a five-point bilateral consensus on energy cooperation between the two countries. The discussion has pointed out the possibility that Bangladesh could utilize the unexploited capacity of its high voltage direct current structure at Veramara power plant to import 40-50 MW of electricity from Nepal in the initial phase. With this possibility in place, the energy authorities of the two countries, Nepal Electricity Authority and Bangladesh Power Development Board will be requesting the Indian NVVN to sign a trilateral PPA.

Similarly, Nepal will be providing the environmental assessment report of 683 MW Sunkoshi-3 Hydropower Project to Bangladesh. In this regard, Bangladesh has consented to come up with necessary comments over the report soon to expedite forming a joint team to take forward the project construction.

Nepal and Bangladesh to initiate a trilateral agreement with India to construct a dedicated transmission line on the Indian land, prepare an agreement draft for cooperation in renewable energy including solar home systems, collaborate on providing training and make a future guideline for bilateral capacity building are among the clauses that the two countries consented in the Thursday meeting.