Kathmandu- Nepal has today commenced the export of 40 megawatts (MW) of electricity to Bangladesh.

Nepal Electricity Authority (NEA), after meeting the domestic electricity demand, has exported surplus power by using the Indian transmission line to Bangladesh.

Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, stated that the commencement of electricity exports to Bangladesh marks a significant step towards the nation's prosperity.

He highlighted that Nepal has become the first South Asian country to export electricity to a third nation, calling it a historic moment.

The agreement to export electricity between Nepal, India, and Bangladesh was signed on October 4, 2024.

The electricity export was jointly inaugurated in Kathmandu by Minister Khadka, India's Minister of Power, Manohar Lal, and Advisor to Bangladesh's Ministry of Power, Energy, and Mineral Resources, Mohammed Fozul Kabir Khan, by switching on the transmission.

As per the agreement, Nepal is exporting 40 MW of electricity for five months each monsoon season, from June 15 to November 15 annually. The export to Bangladesh officially began today in accordance with this agreement.

Previously, a one-day trial electricity sale generated approximately 470,000 units of electricity, earning the NEA USD 30,080.

Until now, electricity trade was limited to Nepal and India.

The electricity generated in Nepal will be sold to Bangladesh via India's transmission infrastructure. The power will be transmitted through the first cross-border transmission line between Nepal and India, the 400 kV Dhalkebar-Muzaffarpur line.

From the Muzaffarpur substation, the electricity will travel through India's grid and then via the 400 kV Behrampur (India)-Bheramara (Bangladesh) transmission line to reach Bangladesh.

The NEA will export 40 MW of electricity, comprising 18.60 MW from the Trishuli Hydropower Project and 21.40 MW from the Chilime Hydropower Project, to Bangladesh.

This 40 MW export agreement is valid until October 2, 2029, for a period of five years, with the Indian government having granted approval for the use of its transmission lines.

Nepal will sell the surplus monsoon electricity to Bangladesh in US dollars for five years. The NEA has already signed an agreement to receive USD 6.40 cents per unit for the electricity sold to Bangladesh.

As per the agreement, Bangladesh will bear all transmission line charges, losses, NVVN charges, Indian trading margins, and all other taxes and fees after the Muzaffarpur point.

The Bangladesh Power Development Board (BPDB) in Bangladesh will also be responsible for paying any outstanding electricity dues for the power exported by Nepal.