Bangladesh has agreed to increase its electricity imports from Nepal by an additional 20 megawatts, bringing the total supply under the Nepal electricity export arrangement to 60MW. This expansion comes as part of ongoing efforts to strengthen regional energy ties through the tripartite power agreement involving Nepal, Bangladesh, and India. Officials from the three nations met recently to finalize the details, marking a significant step in the Bangladesh power import framework that began in 2018.
Cross-border Coordination Under the Tripartite Power Agreement
The decision to add 20MW additional supply was reached during a meeting of the Joint Steering Committee energy group, which oversees cross-border electricity trade via India. Nepal’s Minister for Energy, Water Resources and Irrigation confirmed the development, noting that the enhanced capacity will help meet growing demand in Bangladesh while boosting revenue for Nepal’s hydropower sector. The current 40MW supply, operational since 2018, has been transmitted through the Dhalkebar-Muzaffarpur transmission line, and the new allocation will utilize the same infrastructure to ensure seamless integration.
Strengthening Nepal-Bangladesh Energy Cooperation
Under the expanded Nepal-Bangladesh energy cooperation, the additional power will flow starting early next year, pending final technical approvals. This move builds on the initial tripartite power agreement signed in 2018, which facilitated the first 40MW of Nepal electricity export routed through India’s grid. The NTPC Vidyut Vyapar Nigam, an Indian state-run trading company, plays a pivotal role in wheeling the electricity from Nepal’s Dhalkebar substation to Bangladesh’s Muzaffarpur interconnection point.
Hydropower Export Nepal Growth Momentum
Energy experts in Kathmandu highlighted that this increment represents a modest but steady growth in regional hydropower export Nepal initiatives. Nepal, rich in untapped hydroelectric potential, sees such deals as vital for monetizing surplus power during off-peak seasons. For Bangladesh, the 20MW additional supply addresses chronic shortages exacerbated by rising industrial needs and seasonal variability in domestic generation. The total 60MW import now positions this corridor as a key element in Dhaka’s diversified energy procurement strategy.
Electricity Trade via India: Technical and Policy Coordination
The Joint Steering Committee energy convened in New Delhi for the talks, where representatives from Nepal Electricity Authority, Bangladesh Power Development Board, and India’s Power Grid Corporation discussed operational modalities. The committee, established under the tripartite power agreement, meets periodically to resolve transmission challenges and explore scalability. Sources indicated that the panel approved the uptick without major hurdles, citing improved grid stability along the electricity trade via India route.
Renewable Energy Collaboration Beyond Power Trade
This development aligns with broader renewable energy MoU frameworks signed between Nepal and Bangladesh in recent years. In 2022, the two nations inked a memorandum of understanding to collaborate on power sector investments, including potential joint ventures in hydropower projects. The Sunkoshi-3 investment, a 680MW storage-type project, emerged as a focal point during those discussions, with Bangladesh expressing interest in funding development to secure long-term supplies.
Economic Impact of Nepal Electricity Export to Bangladesh
Nepal’s hydropower export Nepal ambitions extend beyond this deal, but the Bangladesh power import has served as a flagship example. Since inception, the 40MW flow has generated approximately $10 million annually for Nepal, based on prevailing tariffs of around 6.5 cents per unit. With the 20MW additional supply, projections suggest an extra $2.5 million in yearly earnings, bolstering foreign exchange reserves for reinvestment in new capacities.
Transmission Reliability Through India
Transmission logistics remain central to the arrangement’s success. The Dhalkebar-Muzaffarpur transmission line, a 400kV cross-border link commissioned in 2016, handles the Nepal electricity export load efficiently. Indian authorities have assured no capacity constraints for the incremental 20MW, which will be scheduled during Nepal’s monsoon surplus periods from June to October. Bangladesh, in turn, commits to wheeling charges paid to India, ensuring cost viability for all parties.
Deepening Nepal-Bangladesh Energy Cooperation and Trust
Stakeholders emphasized the tripartite power agreement’s role in fostering trust. “This is not just about megawatts; it’s about sustainable Nepal-Bangladesh energy cooperation,” a Nepali energy official remarked during the committee deliberations. The pact has weathered initial teething issues, such as voltage fluctuations and metering disputes, now largely resolved through bilateral protocols.
Future Scaling of Electricity Trade via India
Looking ahead, the Joint Steering Committee energy plans to review the 60MW total import performance after six months of operation. Potential expansions to 100MW or more could follow if demand projections hold. Meanwhile, the renewable energy MoU encourages exploratory talks on direct interconnections, bypassing third-country routing for future volumes.
Investment Synergy Through Sunkoshi-3 and Other Hydropower Projects
In parallel, Nepal continues to court investors for projects like Sunkoshi-3 investment. Bangladesh’s state entities have shortlisted the site for feasibility studies, with an eye on equity stakes that could guarantee offtake rights. This synergy between trade and investment underscores the deepening electricity trade via India dynamics.
Nepal’s Long-term Hydropower Export Nepal Strategy
For Nepal, ramping up hydropower export Nepal remains a priority amid domestic consumption shortfalls. The country generates over 1,500MW during wet seasons but exports only a fraction. The Bangladesh deal, now at 60MW, exemplifies how tripartite frameworks can unlock more.
Benefits for Bangladesh Under Nepal Electricity Export Deals
Bangladesh benefits from cleaner imports, aligning with its renewable targets under the Paris Agreement. The additional 20MW additional supply equates to powering about 12,000 households, easing urban load-shedding in Dhaka and beyond.
Operational Readiness and Technical Integration
As implementation nears, technical teams from all sides will conduct joint simulations on the Dhalkebar-Muzaffarpur transmission corridor. NTPC Vidyut Vyapar Nigam will oversee metering and invoicing, with payments settled in convertible currency.
Regional Outlook for Nepal Electricity Export and Cooperation
This milestone reinforces the viability of subregional grids. Nepal’s Energy Ministry anticipates similar pacts with other neighbors, potentially tripling export volumes by decade’s end.
Diplomatic Momentum Supporting Tripartite Power Agreement
The agreement’s fruition reflects diplomatic momentum. Prime ministerial endorsements in recent SAARC forums have prioritized energy as a peace dividend.
Conclusion: Stronger Nepal-Bangladesh Energy Cooperation Through Electricity Trade via India
The leap to 60MW total import signals robust Nepal-Bangladesh energy cooperation, with the Joint Steering Committee energy poised to guide further strides. As grids interconnect, so do economies, promising shared prosperity through sustainable flows.
Published in SouthAsianDesk, November 28th, 2025
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