Nepal earned NPR 4.71 million by selling electricity to Bangladesh. Nepal sold electricity to Bangladesh on November 15. On that day, 470,000 units of electricity were sold, according to the Nepal Electricity Authority.

The spokesperson of the authority, Chandan Kumar Ghosh, stated that this earned $30,080.

According to the foreign exchange rate of November 15, this amounts to NPR 4.71 million. However, Ghosh mentioned that Nepal will receive payment in dollars. An agreement was signed on October 3 between Nepal, India, and Bangladesh to sell electricity during the five-month monsoon season, from June 15 to November 15 each year.

Although an agreement was in place, India had to grant permission for the project to sell electricity to Bangladesh. Nepal exported electricity on November 15, immediately after receiving approval from India.

Nepal will export a total of 40 megawatts of electricity to Bangladesh, with 18.60 megawatts from the Trishuli Hydroelectric Project and 21.40 megawatts from the Chilime Hydroelectric Project. The Central Electricity Authority of India has approved the export of 40 megawatts of electricity from these two projects to Bangladesh until October 2, 2029.

Both of these projects have already received approval for electricity export to India. Nepal will resume electricity exports to Bangladesh from June 15, 2025.

The Nepal Electricity Authority has sold 40 megawatts of electricity to Bangladesh in US dollars for five years. The electricity trade between Nepal and Bangladesh will be in dollars. The authority will receive 6.40 US cents per unit of electricity sold to Bangladesh.

Nepal is set to earn revenue in dollars for the first time from electricity sales. The electricity trade with India has been conducted in Indian Rupees. The price of electricity exported to Bangladesh will be based on the rate Nepal Electricity Authority will receive at the Muzaffarpur point in India. The authority will bear the technical losses of the transmission line from Dhalkebar to Muzaffarpur.

The electricity will reach India’s Muzaffarpur substation through the first cross-border Dhalkebar-Muzaffarpur 400 kV transmission line between Nepal and India. From there, it will be transmitted via India’s transmission lines through the Behrampur (India)–Bhedamara (Bangladesh) 400 kV transmission line to Bangladesh, as stated by the authority.

Bangladesh will bear all the taxes and fees, including transmission line charges, losses, and the trading margin that India will charge, after the Muzaffarpur point. A tripartite electricity sales agreement was signed on October 3 between Nepal Electricity Authority, India’s NTPC Electric Power Trading Corporation (NVVHN), and Bangladesh Power Development Board (BPDB) for the export of 40 megawatts of electricity from Nepal to Bangladesh using India’s transmission grid.

After the tripartite electricity sales agreement, the authority sent a list of the projects for approval to the Central Electricity Authority of India on October 9. Electricity exports began after the Central Electricity Authority of India granted approval.

As per the provisions of the law, the Bangladesh Power Development Board (BPDB) issued a tender for the purchase of 40 megawatts of electricity produced in Nepal for five years, in accordance with the tripartite agreement between Bangladesh, India, and Nepal. The tender was called on January 1, 2023.

The authority submitted the tender documents, including the electricity rate for the sale of electricity as per the prescribed format. After the tender submitted by the authority was approved, the process of the tripartite electricity sales agreement moved forward.

Source: Kantipur