Nepal Boosts Power Exports: 40 MW to Bangladesh via India, Strengthening Energy Trade

KATHMANDU: Nepal Electricity Authority (NEA) has commenced exporting 40 megawatts (MW) of electricity to Bangladesh through India’s transmission lines starting today, June 15, marking a significant step in Nepal’s growing energy trade with neighboring countries. This follows a successful pilot export last year on November 3, 2024, when Nepal supplied power to Bangladesh for 12 hours via Indian grids.

The export initiative stems from a tripartite power sales agreement signed on October 3, 2024, between NEA, Bangladesh Power Development Board (BPDB), and India’s NTPC Vidyut Vyapar Nigam Limited (NVVN). Nepal’s Energy, Water Resources, and Irrigation Minister Deepak Khadka hailed the export as a milestone for regional energy cooperation and Nepal’s economic prosperity. “Exporting surplus electricity to Bangladesh and India during the monsoon season is a matter of pride and a boost for Nepal’s business and development,” Khadka said.

Continuous Power Export to Bangladesh

This year, Nepal will export 40 MW of electricity to Bangladesh for five months, from June 15 to November 15, 2025. The power, sourced from the Trishuli Hydropower Station (18.60 MW) and Chilime Hydropower Project (21.40 MW), will generate approximately 146.88 million units of electricity, earning Nepal NPR 1.29 billion (USD 9.6 million) at a rate of 6.40 US cents per unit. The electricity will be transmitted via Nepal’s 400 kV Dhalkebar substation to India’s Muzaffarpur and Berhampur, reaching Bangladesh’s Bheramara substation.

Subarna Sapkota, Deputy Manager of NEA’s Power System Control Department, emphasized the strategic importance of this export. “This initiative aligns with Nepal’s goal to maximize hydropower utilization, balance energy needs, and bolster the economy,” he said.

Nepal’s Expanding Energy Market

Nepal has been exporting surplus monsoon-generated electricity to India for five months annually. Building on last year’s 12-hour export to Bangladesh, this year’s continuous five-month supply marks a significant expansion. The government’s Energy Development Roadmap 2081 aims to produce 28,500 MW by 2035, with a target of exporting 15,000 MW, positioning Nepal as a key player in South Asia’s energy market.

Simultaneous Power Exports to India

In parallel, NEA continues to strengthen its electricity exports to India. Since June 1, 2025, Nepal has been supplying 185 MW to Haryana, India, which increased to 200 MW starting Saturday. Additionally, since midnight on June 14, NEA began exporting 80 MW to Bihar. These exports, facilitated through the 400 kV Dhalkebar-Muzaffarpur and 132 kV transmission lines, are priced at INR 5.25 per unit under a bilateral agreement. Nepal’s increased hydropower production during the monsoon enables it to meet domestic demand and export surplus electricity to both India and Bangladesh.

Economic and Strategic Impact

The power exports are expected to reduce Nepal’s trade deficit, enhance energy security, and support sustainable hydropower development. By leveraging its abundant monsoon-season electricity, Nepal is establishing itself as a reliable energy partner in the region, contributing to economic growth and regional energy stability.