Nepal exports 40 MW power to Bangladesh via India, New Delhi says a step towards South Asian grid

On Friday, India said that the launch of 40 MW of power from Nepal to Bangladesh was an “important step” towards creating a strong South Asian power grid. The comments came after Bangladesh’s Chief Advisor Muhammad Yunus called for greater electricity connectivity.

Dhaka has been calling for the creation of a ‘South Asian grid’ to get a share in the hydroelectricity generated by Nepal and Bhutan. “As future steps to increase the volume of power trade, it is important to interconnect national grids synchronously that will enable seamless flow of power in the region,” the Indian power ministry said in a statement.

The remarks came following the inauguration of the first trilateral power transaction from Nepal to Bangladesh using the Indian power grid. The initiative was jointly inaugurated by Indian Minister for Energy and Power Manohar Lal Khattar, his Bangladesh counterpart Md Fouzul Kabir Khan and Nepalese counterpart Dipak Khadka, The Dhaka Tribune reported.

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A Landmark feat in Regional Energy Cooperation!

Virtually inaugurated the first-ever power transaction from Nepal to Bangladesh via the Indian grid today.

This historic initiative reflects India's commitment to fostering regional energy integration and sustainable growth in… pic.twitter.com/tlia6Ej7yN

— Manohar Lal (@mlkhattar) November 15, 2024

The three nations look for a solid South Asian grid

Last year, the Indian government expressed its openness to facilitate the first trilateral power transaction from Nepal to Bangladesh, through the Indian grid with an export of up to 40 MW. The move was announced during Nepal’s former Prime Minister Pushpa Kamal Dahal ‘Prachanda’s’ visit to India from May 31 to June 3, 2023.

During the visit, both India and Nepal expressed their commitment towards greater sub-regional cooperation, including in the energy sector, which would ultimately lead to increased inter-linkages between the economies for the mutual benefit of all stakeholders.

In light of this, a tripartite agreement was signed between NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority and Bangladesh Power Development Board on October 3, 2024, in Kathmandu. Bangladesh noted that the import of power sourced from hydropower from Nepal would increase the share of renewable energy in Bangladesh’s power mix.