Bangladesh To Sign Power Sales Agreement with Nepal to Purchase 40 MW Electricity

Bangladesh will import 40 MW of electricity from Nepal.

The 5th meeting of the Joint Steering Committee (JSC) held in Bangladesh in presence of official representatives of both Nepal and Bangladesh has decided to reach consensus to sign a Power Sales agreement. The agreement in questioning is to be signed between Nepal Electricity Authority (NEA), NTPC, India and Bangladesh Power Development Board to import 40 MW Nepal-made electricity to Bangladesh using India's transmission lines.

In order to export electricity from Nepal to Bangladesh, India's transmission lines have to be used. Therefore, India's consensus in the matter is essential. Meanwhile, in the meeting discussions were also held for the construction of dedicated transmission lines between Nepal and Bangladesh.

Similarly, the meeting also decided to direct the Joint Technical Team to submit a report within six months studying the possibility of potential requirement of international transmission lines between Nepal, India and Bangladesh for the import of electricity from Nepal.

The secretariat-level meeting held between Nepal and Bangladesh has further decided to sign the Joint Venture Agreement within six months for the construction of Sun Koshi-3 Hydropower Project under combined investment.

The Ministry of Power Energy and Mineral Resources of Bangladesh and Ministry of Energy, Water Resources and Irrigation of Nepal have decided to begin talks with India for tripartite executive co-ordination for sale/purchase of electricity, construction of international transmission lines and for cooperation in the sector.

Earlier in Shrawan 2077, the government had granted approval to the Nepal Electricity Authority to sale excess electricity to neighboring India and Bangladesh as the production exceeded the consumption of electricity in Nepal.

Known primarily as the leading manufacturer of textile products, Bangladesh has seen rapid economic growth and subsequent rise in its demand for energy. Therefore, importing electricity to Bangladesh can be of significant importance due to the possibility of greater demand from Bangladesh in the immediate future.