Nepal exports first electricity to Bangladesh through India's grid

Nepal began exporting 40 Megawatts (MW), of electricity to Bangladesh via India's grid, marking its first entry into the international market for energy and positioning India as an important facilitator of regional electricity trade.

Nepal exports 80 MW of power to Bihar in India's eastern region, said Nepal's Energy minister Dipak Khadka on X Sunday. He added that the Himalayan country had a 5,000 MW market.

The power transaction is the result of a trilateral agreement signed by Nepal Electricity Authority (NEA), Bangladesh Power Development Board (BPDB) and India's NTPC Vidyut Vyapar Nigam in October.

India exports power to Nepal, Bangladesh, and Myanmar. It imports power from Nepal and Bhutan, and it is integrating its grid with Sri Lanka.

This development coincides with the rapid expansion of Nepal's hydropower capacity. Indian hydro power producer SJVN is currently developing the Arun-3 project, a 900 MW hydropower plant in Nepal's Sankhuwasabha District.

In April, India’s Power Grid Corporation (IPG) and Nepal Electricity Authority (NEA) agreed to build a high-capacity transmission infrastructure across borders to increase power trading.

Nepal, with a hydroelectric capacity of over 3,000 MW and a 95% installed capacity, is also seeking Indian investment in order to increase its output. It would like to export excess power to New Delhi. (Reporting and editing by Sethuraman N; Kate Mayberry).

(source: Reuters)