Kathmandu, Nepal — A landmark Tripartite Power Sales Agreement has been signed between the Nepal Electricity Authority (NEA), NTPC Vidyut Vyapar Nigam (NVVN) of India, and the Bangladesh Power Development Board (BPDB). The ceremony, held in Kathmandu, was graced by high-ranking officials, including Honorable Minister Dipak Khadka from Nepal’s Ministry of Energy, Water Resources, and Irrigation, and distinguished delegates from India and Bangladesh.
The agreement, a significant step towards enhancing regional energy cooperation in South Asia, will facilitate the sale of 40 MW of power from Nepal to Bangladesh through India’s transmission grid. The power will be transmitted from Nepal’s Dhalkebar substation to the Muzaffarpur substation in India, and then to Bangladesh via the Baharampur-Bheramara HVDC Cross-Border Link. This arrangement is expected to continue for five years, providing Nepal with an estimated annual revenue of $9.22 million.
The dignitaries present hailed the agreement as a key milestone, marking Nepal’s first venture into exporting electricity beyond India’s borders. Honorable Minister Khadka emphasized the importance of regional energy cooperation, stating, “This agreement represents more than a contractual arrangement—it is the culmination of our shared vision and collaborative efforts.”
The deal aligns with Nepal’s broader energy ambitions. Currently exporting about 900 MW of electricity to India, Nepal plans to significantly increase its hydropower capacity to 28,500 MW by 2035, with aspirations of exporting up to 10,000 MW to India and 5,000 MW to Bangladesh in the coming years. The integration of renewable energy resources and the establishment of high-voltage interconnections are expected to further enhance energy security in the region.
As per the agreement, the NEA will supply 144 million units of electricity annually to Bangladesh during the five-month period from June to November. NVVN will manage the transaction, ensuring smooth scheduling and energy accounting. Transmission charges will be covered by BPDB, further reinforcing the collaborative nature of the deal.
Officials from all three nations praised the agreement as a testament to the growing energy cooperation within South Asia. The delegates expressed optimism that this partnership will pave the way for further energy projects, joint investments, and a fair energy market that will benefit all partner countries.
The agreement is seen as a major leap towards realizing a more integrated energy market in South Asia, contributing to regional economic prosperity and sustainability.
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