KATHMANDU: Due to the ongoing violent protests in Bangladesh, Prime Minister Sheikh Hasina has resigned and left the country, causing uncertainty regarding Nepal's electricity exports to Bangladesh.
The agreement for Nepal's electricity export to Bangladesh, initially scheduled for July 28, was postponed due to the protests. Following Prime Minister Hasina's departure on Monday, Army Chief General Waqer-Uz-Zaman announced the formation of a new interim government.
This political instability has raised more doubts about the timeline and feasibility of the agreement between the two countries. However, Bangladeshi government officials have indicated that despite potential delays, the newly formed government may still view purchasing electricity from Nepal favorably, given Bangladesh's need for power.
The agreement on electricity export from Nepal to Bangladesh, once signed, will mark the first time Nepal exports electricity to a third country. Since 2021, Nepal has been exporting electricity to India’s competitive energy market.
A tripartite agreement between the Nepal Electricity Authority, India's NTPC Vidyut Vyapar Nigam (NVVN), and the Bangladesh Power Development Board was to be signed on July 28. The agreement outlined that Nepal would sell 40 megawatts of electricity to Bangladesh at 6.4 US cents per unit during the six-month rainy season (from June 15 to November 15 each year) for the next five years.
However, the student protests in Bangladesh and the toppling of the government have significantly disrupted these plans. Deputy Executive Director of the NEA, Manoj Silwal, expressed concerns about the uncertainty surrounding electricity exports due to the recent developments.
The new interim government in Bangladesh, not formed through the electoral process, creates an abnormal situation. "There is a doubt that the new government will easily implement the decisions of the previous government," Silwal said.
Previously, citing the protests, Sheikh Hasina's government informed the Nepali embassy that it would be unable to attend the agreement signing scheduled for July 28. The Ministry of Energy, Water Resources, and Irrigation had planned to export 28,800 megawatt hours of electricity to Bangladesh monthly, with a goal of exporting 144,000 megawatt hours and earning Rs 1.23 billion in the next five months if an agreement was reached immediately.
Navinraj Singh, spokesperson for the Ministry of Energy, Water Resources, and Irrigation, stated that due to the latest political developments in Bangladesh, it is challenging to predict the outcome of the electricity purchase and sale. "The first thing is that there is no government there now," he said. "The head of the government has left the country." This has added to the confusion surrounding the electricity purchase and sale agreement.
Despite Sheikh Hasina's government prioritizing the purchase of electricity from Nepal, Nepali officials acknowledge that the agreement will depend on the new government's stance. "However, due to the lack of electricity in Bangladesh, we believe that the newly formed government will prioritize purchasing electricity from Nepal. Now let's see how the events progress," Singh added.
In addition to the tripartite agreement, the bilateral high-level mechanism meeting on energy between Nepal and Bangladesh, scheduled for July 29-30 in Pokhara, was also postponed. This meeting aimed to discuss or sign an agreement on establishing a joint venture to build the Sunkoshi 3 hydropower project with a capacity of 683 MW. However, recent developments have added uncertainty to this plan as well, Singh noted.
