First trilateral power transaction begins from Nepal to Bangladesh via India

Supply of electricity today started from Nepal to Bangladesh via India in a trilateral transaction which is expected to boost sub-regional connectivity in the power sector.

The power flow was jointly inaugurated by Bangladesh's Energy Adviser Md Fouzul Kabir Khan, India's Minister for Power and Housing and Urban Affairs Manohar Lal and Nepal's Minister of Energy, Water Resources and Irrigation Dipak Khadka through a virtual event hosted by the government of Nepal.

This "historic" occasion marks the first trilateral power transaction which has been carried out through the Indian grid, an official statement in New Delhi said.

India had announced its decision to facilitate the first trilateral power transaction from Nepal to Bangladesh through Indian grid with an export of up to 40 MW of power during the visit of the former prime minister of Nepal Pushpa Kamal Dahal "Prachanda" to India from May 31 to June 3, 2023.

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

​Subsequently, a tripartite power sales agreement between India's National Thermal Power Corporation Vidyut Vyapar Nigam, Nepal Electricity Authority and Bangladesh Power Development Board was signed on October 3 in Kathmandu.

​"The start of this power flow from Nepal to Bangladesh through India is expected to boost sub-regional connectivity in the power sector," the Indian statement said.

Power supply from Nepal began at a time when Bangladesh is trying to ensure steady electricity availability in the face of reduced supply from Adani's power plant in Godda, Jharkhand.