Nepal has officially started exporting 40 megawatts of electricity to Bangladesh from Asar 1 (June 15) at midnight. This marks a new phase in Nepal’s energy trade, supported by a tripartite agreement between Nepal, India, and Bangladesh.
The electricity comes from two hydro projects: Trishuli (18.60 MW) and Chilime (21.40 MW). Nepal is allowed to export power to Bangladesh every year from June 15 to November 15.
Last year, Nepal had exported electricity for just 12 hours. This year, due to a delay in opening the letter of credit (LC), there was confusion about the schedule. But the LC has now been opened, and the export began Saturday night, confirmed Nepal Electricity Authority (NEA) Executive Director Hitendra Dev Shakya.
Energy Minister Deepak Khadka said this deal is a proud moment for Nepal as it proves the country’s growing capacity in clean energy and regional cooperation.
Even though Bangladesh received 470,000 units of power last year, the payment of $30,080 is still pending. The NEA expects it to be cleared soon, along with this year’s new agreement.
The electricity is delivered to Bangladesh via India. It first travels from Nepal to India’s Muzaffarpur substation through the 400kV Dhalkebar-Muzaffarpur transmission line, and from there to Bangladesh through the Baharampur–Bheramara 400kV interconnection.
India’s Central Electricity Authority has approved the export of 40 MW to Bangladesh until October 2, 2029. Nepal and Bangladesh agreed on a power purchase deal in USD, with NEA earning 6.40 cents per unit.
Transmission losses up to Muzaffarpur will be NEA’s responsibility, but the costs after that—including trading margin, taxes, and technical loss—will be covered by Bangladesh.
The power trade was made possible after the tripartite agreement among NEA, India’s NTPC Vidyut Vyapar Nigam (NVVN), and Bangladesh Power Development Board (BPDB). NEA submitted its proposal for the export, which was approved by India’s electricity authority before launching the power flow.
