An Agreement to Export 40 MW of Hydropower to Bangladesh being Signed

Kathmandu; After long-standing efforts and continuous discussions, an agreement has been reached to export 40 MW of hydropower from Nepal to Bangladesh. The 'Power Sale Agreement (PSA)' is scheduled to be signed on July 28, utilizing the Indian transmission network to export to Bangladesh.

As this agreement is a historic event, Nepal’s Minister of Energy, Water Resources, and Irrigation, Deepak Khadka, has sent invitations on July 17 to his counterparts in India and Bangladesh, Manohar Lal and Nasrul Hamid, respectively. According to Nabin Raj Singh, spokesperson of Ministry, the presence of ministers from all three countries has been requested as this ceremony holds special significance for Nepal, India, and Bangladesh.

"The agreement on electricity trade has been scheduled to take place in the presence of ministers from all three countries," Singh said to Urja Khabar on Wednesday. The agreement on hydropower export will be between the Nepal Electricity Authority (NEA) from Nepal, the Bangladesh Power Development Board (BPDB) from Bangladesh, and the nodal agency NTPC Vidyut Vyapar Nigam (NVVN) from India, which will purchase electricity from Nepal and sell it to Bangladesh.

According to Singh, Nepal will sell 28,800 MWh of energy to Bangladesh annually for five months (from June 15 to November 15) at a rate of 6.40 US cents (approximately NPR 8.57) per unit. Selling 144,000 MWh of energy in five months will generate revenue of USD 9.216 million (approximately NPR 1.23 billion at the exchange rate of NPR 133.65 per USD).

BPDB had previously sent a letter to NEA to sign an agreement for the purchase and sale of electricity. BPDB had also informed NEA that the tender submitted by NEA for the sale of 40 MW of hydropower during the five months of the rainy season had been approved by the concerned authorities.

According to the legal provisions, BPDB had invited tenders on 1 January, 2024, to purchase 40 MW of hydropower produced in Nepal for five years under a tripartite agreement between Bangladesh, India, and Nepal. NEA had submitted the bid documents with the specified format and rates for the sale of electricity.

The price of electricity exported to Bangladesh will be received by NEA at the Muzaffarpur point in India through the first 400 kV Dhalkebar-Muzaffarpur cross-border transmission line between Nepal and India. The meter for the electricity exported to Bangladesh will be located in Muzaffarpur. NEA will bear the technical losses from Dhalkebar to Muzaffarpur.

The electricity will reach Bangladesh via the 400 kV transmission line from Muzaffarpur, India, through Baharampur (India) and Bheramara (Bangladesh). All the costs, including transmission line fees, losses, NVVN’s trading margin, and other taxes and fees after the Muzaffarpur point, will be borne by Bangladesh.

Nepal-Bangladesh Sixth JSC Meeting in Pokhara

The sixth meeting of the Joint Steering Committee (JSC) at the energy secretary level between Nepal and Bangladesh will be held in Pokhara on July 29-30. The meeting of the Joint Working Group (JWG) at the joint secretary level will be held a day earlier, on the 14th. The discussions and issues raised in the JWG meeting will be presented and approved in the JSC meeting