Bangladesh approves plan to import 40MW of electricity from Nepal
Bangladeshi media reports indicate that the electricity will be traded at 8.17 Bangladeshi Taka per unit (approximately 9.30 Nepali Rupees).
During a meeting of the ‘Cabinet Committee on Government Purchase’ in Bangladesh on Tuesday, a proposal was approved to import 40 megawatts of electricity from Nepal. The proposal, presented by the Power Division of the Bangladesh Power Development Board (BPDB), was one of 15 proposals endorsed by the committee chaired by Finance Minister Abul Hassan Mahmood Ali, as reported by the National News Agency of Bangladesh.
According to Md Mahmudul Hossain Khan, Secretary of the Cabinet Division (Coordination and Reform) in Bangladesh, the BPDB will import 40MW of hydroelectricity from Nepal for a duration of five years. This will be facilitated under a tripartite agreement involving the Nepal Electricity Authority (NEA), NTPC Vidyut Vyapar Nigam Limited (NVVN) India, and BPDB.
Bangladeshi media sources state that the electricity will be traded at 8.17 Bangladeshi Taka per unit (approximately Rs 9.30).
The electricity will be delivered to a 400kV substation in Muzaffarpur, India, with Bangladesh covering the transmission charges for using Indian infrastructure. The final agreement between Nepal and Bangladesh is yet to be scheduled, but it is likely to coincide with a potential visit by Bangladeshi Prime Minister Sheikh Hasina to Nepal, according to Khan.
Nepal and Bangladesh had previously agreed to sign the tripartite agreement during a meeting of the energy secretary-level joint steering committee in May 2023. In February, Bangladesh had submitted a draft Request for Proposal (RfP), to which Nepal responded with proposed tariffs and details on power delivery to Bangladesh.
The trading terms were finalized during discussions at the SAARC Energy Centre’s secretary-level meeting held in Singapore from February 23 to 26, 2024.