Nepal, Bangladesh Explore Energy Cooperation and Power Trade

Nepal and Bangladesh are holding discussions to increase electricity exports from Nepal and expand the capacity of the cross-border transmission lines, a senior government official said.

According to the Ministry of Energy, the two sides discussed the issue during a joint secretary-level meeting of the two countries’ task force held in Bangladesh on Wednesday. A secretary-level joint director committee meeting is scheduled for Thursday, the Ministry added.

At Wednesday’s meeting, participants discussed how to increase electricity exports from the current 40 MW being supplied to Bangladesh. “We also discussed constructing new transmission lines and enhancing the capacity of the existing lines,” said Sandeep Kumar Dev, Joint Secretary at Nepal’s Ministry of Energy. Currently, electricity is exported to Bangladesh using transmission lines through India, meaning India’s cooperation is essential for line expansion and capacity enhancement.

While Nepal and Bangladesh emphasised the need for a dedicated transmission line via India, officials expressed doubts about India’s willingness to agree in the changed context. With India-Bangladesh relations currently strained, expanding electricity trade between Nepal and Bangladesh could face additional challenges. The secretary-level meeting on Thursday is expected to continue discussions and make decisions on these issues, Dev said.

The officials also explored ways for cooperation in alternative energy between the two countries. Discussions held at the joint secretary-level meeting will be further deliberated and approved at Thursday’s secretary-level meeting.

In addition, the two countries discussed developing the 683 MW Sunkoshi III Hydropower Project under a tripartite agreement between Nepal, Bangladesh, and India. Last year, it was agreed that India would be included in the project and requested to facilitate the export of electricity from the project to Bangladesh.

“Following this meeting, a joint venture between Nepal and Bangladesh will be formed to implement the Sunkoshi III project,” Dev said. The project’s estimated investment is Rs 160 billion.

Discussions also covered ways to strengthen cooperation in alternative energy between Nepal and Bangladesh, Dev added.