The chances of exporting 40 megawatts of electricity to Bangladesh this year are slim. The Nepal Electricity Authority (NEA) stated that the process of signing a tripartite agreement between Nepal, India, and Bangladesh for the export of electricity is taking longer than expected, reducing the likelihood of exporting electricity during the current rainy season, which is about to end.

Rajan Dhakal, director of NEA's Electricity Trade Department, explained that although Bangladesh's interim government is positive about importing electricity from Nepal, the delay in finalizing the tripartite agreement has made it unlikely that electricity will be exported this year.

As per the previous agreement with Bangladesh, Nepal was to export electricity between June 15 and November 15. Since it is already mid-September, there is limited time for the sale of electricity to Bangladesh. After December, Nepal will need to import electricity for its own needs.

"Since the agreement date has not been decided yet, even if the deal is signed, electricity is likely to be exported only next year," Dhakal said. "By the time the processes are completed, the rainy season will be over, leaving no time for export this year."

Nepal, India and Bangladesh had earlier decided to sign a tripartite agreement between the NEA, India's NTPC Vidyut Vyapar Nigam (NVVN), and the Bangladesh Power Development Board on July 28. However, due to protests in Bangladesh, the then Prime Minister Sheikh Hasina fled the country, putting the agreement in uncertainty.

Chiranjeevi Chataut, spokesperson for the Ministry of Energy, Water Resources, and Irrigation, also confirmed that Bangladesh’s interim government remains positive about buying electricity from Nepal. However, the agreement involves three parties, including India, and delays have occurred because all three countries need to agree on a date for signing. Informal discussions are ongoing to finalize a date as soon as possible, but no official date has been fixed.

NEA plans to export electricity generated from the 25 MW Trishuli and 22 MW Chilime hydropower projects, built with the help of Indian grants, to Bangladesh after the agreement is signed.

The electricity will be exported to Bangladesh via the Muzaffarpur point in India through the Dhalkebar-Muzaffarpur 400 kV international transmission line between Nepal and India. Nepal is expected to export 28,800 megawatt hours of electricity each month, totaling 144,000 megawatt hours over five months. The price per unit of electricity will be 6.4 cents, and Nepal is set to earn USD 9.216 million (approximately Rs 1.23 billion) over the five-month period.

Once the agreement is signed, it will mark the first time Nepal exports electricity to a third country. Since 2021, Nepal has been exporting electricity to India’s competitive market. However, due to recent political developments in Bangladesh, tensions have arisen between India and Bangladesh. While Bangladeshi media report that the interim government has approved the initiative to import 40 MW of electricity from Nepal, government agencies in Bangladesh have opposed the transmission line fee imposed by India on the electricity import.