Bangladesh and Nepal to sign energy trade agreement today
As part of the agreement, Bangladesh will import 40 megawatts of electricity from Nepal
Nepal and Bangladesh are set to sign an energy trade agreement on Thursday, following discussions held on Wednesday.
During a Joint Steering Committee (JSC) meeting, co-chaired by Nepal's Energy Secretary Suresh Acharya and Bangladesh's Senior Secretary of the Power Division, Ministry of Power, Energy and Mineral Resources, it was decided that a power sales agreement would be signed between the Nepal Electricity Authority (NEA), Bangladesh Power Development Board, and NTPC Vidyut Vyapar Nigam in Kathmandu.
As part of the agreement, Bangladesh will import 40 megawatts of electricity from Nepal, reports The Kathmandu Post.
Keep updated, follow The Business Standard's Google news channel
Since the two countries are not geographically connected, the electricity will be transmitted through Indian infrastructure. Nepal is expected to sell 144,000 MWh of electricity between mid-June and mid-November, at a rate of 6.4 US cents per unit.
Additionally, both sides agreed to develop the Sunkoshi-3 hydropower project in partnership with India and to finalize a joint venture agreement at their next meeting.
Originally planned for 28 July, the signing was delayed due to political tensions and changes in Bangladesh's government. Both countries have also agreed to conduct a technical and financial feasibility study for a cross-border transmission line for future energy trade.
For now, Nepal will transmit the electricity to India through the 400KV Dhalkebar-Muzaffarpur line, and India will then pass the equivalent to Bangladesh. The NEA expects to earn approximately Rs330 million from the sale.
