Nepal plans to increase electricity exports to Bangladesh to 60 MW, Eyes seasonal power trade

KATHMANDU: Nepal has moved forward with plans to increase its electricity exports to Bangladesh from 40 megawatts (MW) to 60 MW, marking another step in strengthening regional energy cooperation and expanding the country’s cross-border power trade.

The proposal will raise exports by an additional 20 MW, subject to approval from India, whose transmission network is used to deliver Nepalese electricity to Bangladesh.

According to Shaligram Bhandari, Joint Spokesperson at Nepal’s Ministry of Energy, Water Resources and Irrigation, Nepal and Bangladesh have already reached an understanding on the additional power supply.

“We are currently exporting 40 MW regularly during the six-month monsoon period—from 15 June to 15 November. Both sides have agreed to increase this by another 20 MW, taking total exports to 60 MW,” Bhandari said.

Indian Approval Remains the Final Step

Because Nepal exports electricity to Bangladesh through India’s cross-border transmission infrastructure, the expansion requires New Delhi’s consent before implementation.

“We will hold discussions with both India and Bangladesh. As soon as India grants approval, Nepal will begin exporting 60 MW,” Bhandari said.

The proposed increase comes despite an earlier delay after India cited technical reasons for not immediately approving the additional 20 MW export capacity.

Nepal and Bangladesh Also Agree on Seasonal Power Imports

In a significant development for regional energy security, Nepal and Bangladesh have also agreed on a seasonal electricity exchange arrangement.

Under the understanding, Bangladesh would supply 20 MW of electricity to Nepal during the winter months, when domestic hydropower generation declines due to lower river flows.

The arrangement reflects Nepal’s broader strategy of exporting surplus electricity during the rainy season while importing power during periods of domestic shortages.

Nepal Began Exporting Electricity to Bangladesh in 2024

Nepal officially began exporting electricity to Bangladesh on 15 November 2024 (30 Kartik 2081 BS) through India’s transmission network.

The exports followed the signing of a tripartite power sales agreement on 3 October 2024 (17 Ashoj 2081 BS) in Kathmandu among:

• the Nepal Electricity Authority (NEA),
• the Bangladesh Power Development Board (BPDB), and
• NTPC Vidyut Vyapar Nigam Limited (NVVN), the power trading arm of India’s state-owned NTPC.

The five-year agreement provides for Nepal to export 40 MW of electricity every year during the monsoon season, from 15 June to 15 November.

Electricity Generated from Trishuli and Chilime Hydropower Projects

The electricity currently supplied to Bangladesh comes primarily from two hydropower stations owned by NEA and its subsidiary companies:

• Trishuli Hydropower Project (25 MW), developed with Indian grant assistance; and
• Chilime Hydropower Project (22 MW), developed through an NEA subsidiary.

These projects provide surplus hydropower during the monsoon season, allowing Nepal to monetize electricity that would otherwise go unused due to limited domestic demand and transmission constraints.

Nepal Receives 6.40 US Cents per Unit

Under the existing export arrangement, Nepal receives 6.40 US cents per kilowatt-hour for electricity sold to Bangladesh.

The electricity is commercially delivered at the Muzaffarpur node in India via the Dhalkebar–Muzaffarpur 400 kV Cross-Border Transmission Line, the first high-capacity cross-border transmission line between Nepal and India.

The export meter is installed at Muzaffarpur, where NEA receives payment. NEA bears the technical transmission losses between Dhalkebar and Muzaffarpur, while Bangladesh covers all downstream transmission charges, system losses beyond Muzaffarpur, taxes, duties, and NVVN’s trading margin.

From Muzaffarpur, electricity is transmitted through India’s national grid before reaching Bangladesh via the Baharampur–Bheramara 400 kV interconnection.

Expanding Regional Power Trade

The proposed increase to 60 MW reflects Nepal’s growing ambition to become a regional clean energy exporter as new hydropower projects come online.

Nepal already exports surplus hydropower to India during the monsoon season and imports electricity from India during the dry winter months when domestic generation falls sharply.

Officials say expanding exports to Bangladesh while establishing reciprocal seasonal imports supports Nepal’s long-term strategy of optimizing hydropower resources, reducing energy wastage during the rainy season, strengthening regional electricity markets, and enhancing energy security across South Asia.

The planned increase will take effect once India grants the necessary transmission approval, enabling Nepal to begin exporting 60 MW of clean hydropower to Bangladesh during the annual monsoon export window.