Nepal Electricity Authority Set to Seal Power Purchase Agreement with Bangladesh in Dollars Today

Nepal Electricity Authority is on the verge of finalizing a Power Purchase Agreement (PPA) with Bangladesh in dollars, led by Executive Director Kulman Ghising. The delegation aims to finalize the rates for exporting electricity to Bangladesh, engaging in discussions with the Power Development Board of Bangladesh. The negotiations aim to establish a PPA at a proposed rate of Rs 9.31 per unit, exceeding the current rate for electricity sold to India. The discussions will address key elements, including payment deadlines and penalties. Bangladesh had previously sought a proposal to purchase 40 megawatts of electricity from Nepal.

Simultaneously, a tripartite agreement involving India is being negotiated to outline terms for electricity trade. Ghising stressed the necessity of a separate bilateral agreement to fix the electricity price for Bangladesh. The agreement, once finalized, will undergo approval in Bangladesh's ministerial meeting, facilitating an official electricity purchase and sale agreement between the Nepal Electricity Authority and the Power Development Board of Bangladesh.

The strategic move aligns with Nepal's goal to export 5,000 megawatts of electricity to Bangladesh by 2035. Despite challenges, the current developments indicate positive momentum in regional energy trade, enhancing cooperation between Nepal, India, and Bangladesh in the realm of electricity exchange.