Nepal is set to export 40 megawatts of electricity to Bangladesh starting Friday, November 15, following the approval from India.
In a virtual session, energy ministers of the three countries will jointly inaugurate the cross-border power transmission at 12:45 PM, Energy Secretary Suresh Acharya told NBA.
The electricity generated by 25 MW Trishuli and 22 MW Chilime hydropower projects will be exported to Bangladesh. It will be facilitated via the 400 kV Dhalkebar-Muzaffarpur transmission line, with Bangladesh receiving power through India’s Berhampur-Bheramara transmission line.
Nepal, India and Bangladesh on Thursday, October 3, 2024 signed a historic tripartite agreement for energy trade in Kathmandu, paving the way for Nepal to sell electricity to a third country other than India for the first time.
Under the agreement, Nepal will export 40 MW of electricity daily to Bangladesh during the wet season for five years using the Indian transmission line at the rate of 6.4 US cents per unit. The country aims to generate a revenue worth $9.216 million by selling 144,000 megawatt-hours of electricity from mid-June to mid-November.
Read: Power Exports to Bangladesh Uncertain as Nepal Awaits Indian Approval
However, despite completing all procedures and formally requesting permission from the Indian government on October 4, Nepal has lost a lucrative revenue opportunity this season following a delayed approval from India’s Central Electricity Authority (CEA).
Nepal will only export the electricity to Bangladesh this year for one day, until Friday midnight, mentioned Acharya, claiming that electricity exports could occur at other times of the year as well, if there would be excess power in Nepal and a demand from Bangladesh.
The export will also mark the first time Nepal will sell electricity in dollars.
Despite being an exporter in the wet season, Nepal imports electricity from India to fulfil its domestic demand during the dry season when water level reduces in the rivers.
Read: Nepal, India and Bangladesh Sign Historic Energy Trade Deal
The development comes nearly three-and-a-half years after India opened its door for Nepal to sell the hydroelectricity.
Nepal was allowed to enter in the day-ahead market of the Indian Energy Exchange on May 1, 2021 for the import while it was given the go ahead to export electricity on November 3, 2021. In October, the same year, Nepal was allowed to sell 39MW of electricity to India.
Nepal has been selling 690 megawatts of electricity daily in the medium term, day-ahead and real-time markets in India, produced from 16 hydropower projects across the country.
Last fiscal year, 2023/24, Nepal became the net-exporter of electricity, as the export exceeded the import by Electricity exports exceeded imports by around Rs 122 million.
Earlier in August, India showed Nepal the green flag to export an additional 251 MW of electricity from 12 hydropower projects, taking the total approved export quantity of electricity to India to 941 megawatts from 28 hydropower projects.
The long-term energy trade agreement between India and Nepal has envisioned Nepal exporting up to 10,000 megawatts to India in the next 10 years. This is the first year of the agreement.
Ganesh Karki, President of Independent Power Producers’ Association, Nepal (IPPAN), had told New Business Age in October that Bangladesh has shown interest to buy around 9,000 MW of electricity from Nepal by 2040.
Nepal aims to achieve its ambitious goal of achieving net zero emission by 2045, by prioritising the production of hydroelectricity. The country targets to generate 28,500 MW by 2035 and export 10,000 MW to India and 5,000 MW to other neighbouring countries, including Bangladesh, in the period.
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