NEA Resumes Electricity Export to Bangladesh, Expands Energy Trade with India
The Nepal Electricity Authority (NEA) has officially resumed exporting 40 megawatts (MW) of electricity to Bangladesh from today, June 15, through Indian transmission lines. This marks a continuation of the energy cooperation that began last year, when Nepal exported power to Bangladesh for the first time for a duration of 12 hours on July 15, 2023.
The renewed export follows a tripartite agreement signed in 2023 between the NEA, the Bangladesh Power Development Board (BPDB), and NTPC Vidyut Vyapar Nigam Limited (NVVN) of India. While the initial export was limited to 12 hours, this year’s power trade is set to last for five months, from June 15 to November 15, aligning with Nepal’s rainy season, which boosts electricity production due to increased water flow for hydropower.
According to Subarna Sapkota, Deputy Manager of the NEA Electricity System Control Department, a total of 146.88 million units of electricity will be exported to Bangladesh over the next five months. The power will be sold at a rate of 6.40 US cents per unit, generating an estimated Rs 1.29 billion in revenue for Nepal.
The electricity is being routed through Nepal’s 400 kV Dhalkebar Substation and transmitted via Muzaffarpur and Behrampur in India to the Bhermara Substation in Bangladesh.
Simultaneously, the NEA has intensified its electricity export operations to neighboring India. Nepal has traditionally exported surplus electricity to India during the monsoon season, which spans approximately five months each year.
This year, since June 1, NEA began exporting 185 MW of electricity to India, which was increased to 200 MW from June 8. The power is being sold at a rate of 5.25 Indian Rupees per unit, as per the bilateral electricity trade agreement between Nepal and India.
In addition to Haryana, the NEA also began exporting 80 MW of electricity to the Indian state of Bihar starting midnight today. This shows a significant expansion of Nepal’s electricity trade footprint within the Indian power market.
Electricity is being transmitted through multiple transmission lines, including both the 400 kV and 132 kV Dhalkebar-Muzaffarpur interconnection lines, ensuring reliable power delivery and enhancing cross-border energy cooperation.
With the onset of the monsoon, Nepal's hydropower plants are operating at increased capacity, leading to a surplus in electricity production. The NEA has capitalized on this seasonal abundance by exporting the excess energy to regional markets.
The continuation and expansion of electricity exports underscore Nepal’s growing role as a clean energy supplier in South Asia. It also represents a significant achievement in trilateral energy cooperation between Nepal, India, and Bangladesh.
This development is seen as a milestone for Nepal’s energy diplomacy, helping not only to stabilize its energy sector revenue but also to strengthen regional connectivity and energy security.
