Nepal resumes 40MW electricity export to Bangladesh via India after LC delay, advancing regional clean energy trade under a trilateral agreement.
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| Power trade resumes between Nepal and Bangladesh after LC clearance, marking the operational return of a five-year regional hydropower export agreement. Image: CH |
Kathmandu, Nepal – June 15, 2025:
Nepal has officially resumed the export of 40 megawatts (MW) of electricity to Bangladesh, routed through India’s transmission system, after Bangladesh cleared a delayed letter of credit (LC), officials confirmed Sunday.
The power transfer restarted at midnight on Saturday under a landmark tripartite agreement signed last year between Nepal, India, and Bangladesh. The deal enables electricity trade during the monsoon season—June 15 to November 15—for five consecutive years.
“We started exporting 40 MW from Saturday night,” said Nepal Electricity Authority (NEA) Executive Director Hitendra Dev Shakya. The delay in Bangladesh issuing the LC had previously raised concerns about whether the export would begin as scheduled.
The agreement was first launched on November 15, 2024, with participation from Nepal’s Energy Minister Deepak Khadka, India’s Power Minister Manohar Lal, and Bangladeshi energy advisor Muhammad Fouzul Kabir Khan. However, only 12 hours of electricity trade occurred that day due to procedural setbacks, with Bangladesh purchasing 470,000 units valued at $30,080—a payment still pending.
Under the current deal, Nepal’s electricity—18.60 MW from the Trishuli hydropower project and 21.40 MW from the Chilime plant—is transmitted via the Dhalkebar–Muzaffarpur 400kV line to India and then through the Berhampur–Bheramara line into Bangladesh.
The NEA has signed a five-year export contract with Bangladesh Power Development Board (BPDB) to supply electricity at a rate of 6.40 US cents per unit. The arrangement is valid until October 2, 2029. NEA will bear technical losses up to Muzaffarpur, while BPDB covers downstream transmission costs and trading margins.
NEA spokesperson Rajan Dhakal stated that BPDB has agreed to pay last year’s outstanding amount along with the new billing cycle. He emphasized that the deal represents a major step forward in Nepal’s efforts to become a regional exporter of clean, renewable energy.
Approved by India's Central Electricity Authority, this cross-border collaboration reflects increasing energy cooperation in South Asia and underscores Nepal’s rising status in the renewable energy landscape.