40MW electricity import from Nepal gets govt nod

The government today approved the purchase of 40 megawatts of electricity from Nepal using the power grid of India.

The Bangladesh Power Development Board (BPDB) will buy the electricity through the direct purchase method, according to a decision of the cabinet committee on economic affairs.

The development comes months after officials of Kathmandu and Dhaka agreed to sign a 25-year agreement for the import of electricity from the Himalayan nation. The two sides are yet to negotiate the tariff.

Nepal and Bangladesh inked a memorandum of understanding on cooperation in the power sector in 2018.

Besides, Nepal and India have agreed to cooperate in the power sector at sub-regional level of the 'Bangladesh, Bhutan, India and Nepal' (BBIN) initiative, according to the Kathmandu Post.

Bangladesh is turning to external sources to diversify electricity supply and increase the share of renewables in its energy mix.

The country is eager to buy 500 MW of electricity from Nepal, which has the potential to produce more than 72,000 MWs from hydropower.