Bangladesh will soon import power from Nepal via India, Energy News, ET EnergyWorld

New Delhi: A tripartite power trade agreement enabling Bangladesh to import electricity from Nepal through India’s grid is expected to be signed in July, reshaping sub-regional cooperation that has been boosted in recent times through cross-border transport and energy initiatives.

During Nepal PM Pushpa Kamal Dahal’s visit here early June, he and Prime Minister Narendra Modi unveiled plans for India to facilitate the export of hydropower from Nepal to Bangladesh. To begin with, Bangladesh will import 40-50 MW electricity from Nepal and this will be Kathmandu’s maiden power export venture outside India.

The deal is expected to be signed next month, ET has learnt. The agreement will also meet a long-standing demand from Nepal and Bangladesh to allow the trading of power through the Indian grid. Experts claim this will reduce dependence of India’s neighbours on China in the long run.

The move fits in with efforts by India in recent years to forge greater energy connectivity with Bangladesh, Bhutan, Nepal and Sri Lanka through electricity transmission networks and petroleum pipelines.

In the past, electricity trade with neighbours was done under bilateral agreements. The finalisation of new guidelines for Cross-Border Trade of Electricity in recent years served as building blocks for the new arrangements. The guidelines evolved after consultations with all stakeholders, allowing neighbouring countries to purchase and sell power through the Indian grid and participate in Indian power exchanges, according to people aware of the matter.

The guidelines were drafted in such a way that power from any Chinese-funded power plant in a neighbouring country cannot be traded through the Indian grid, according to one of persons familiar with the matter.

A long-term Power Trade Agreement was signed between India and Nepal during Prachanda’s trip to New Delhi. Under this Agreement, India has set a target of 10,000 MW of electricity from Nepal in the coming years.

  • Published On Jun 28, 2023 at 08:01 AM IST

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