Kathmandu, Ashoj 17(Oct 3): After a long homework and discussion, Nepal’s electricity is finally going to Bangladesh. For the first time after India, Nepal has signed an agreement to export electricity to a third country. Chiranjeevi Chataut, Joint Secretary and Spokesperson of the Ministry of Energy, Water Resources and Irrigation, informed that the effort after long discussions is going to be successful after the high officials of the two countries agreed to sign the electricity purchase and sale agreement today.
In recent days, intensive discussions were held regarding the delayed electricity trade agreement due to the political changes in Bangladesh. The sixth meeting of the joint directorate committee on energy efficiency of the two countries, held today, decided to conclude the agreement on Thursday. The secretary-level mechanism was co-chaired by Energy Secretary Suresh Acharya on behalf of Nepal and Mohammad Habibur Rahman, Senior Secretary of the Ministry of Electricity, Energy and Minerals on behalf of the People’s Democratic Bangladesh government.
According to spokesperson Chatout, in the first phase, 40 megawatts of electricity will be exported to Bangladesh. In the agreement, a power sale agreement will be signed between Nepal Electricity Authority, Bangladesh Power Development Board and Indian Nodes Agency NTPC Electricity Trading Corporation. Today (Thursday) the program of signing the tripartite agreement has been decided in the presence of Minister of Energy, Water Resources and Irrigation Deepak Khadka, Minister of Forests, Environment, Climate Change and Water Resources of Bangladesh Syeda Rizwana Hasan, spokesperson Chataut informed.
Similarly, it has been agreed to develop the Sunkoshi third hydropower project on the basis of cooperative participation between Nepal, Bangladesh and India and to finalize the joint venture agreement between the authority and the Power Development Board of Bangladesh regarding the establishment of a joint company for the development of the project before the next meeting. The technical and economic aspects of the proposed international transmission line for electricity trade between Nepal and Bangladesh will be studied. Possibilities will be explored in relation to organizing a business conference to attract the private sector of Bangladesh to promote investment in Nepal’s hydropower sector. In the energy secretary-level meeting of the two countries, it was also agreed to finalize and sign the memorandum of understanding on cooperation between the alternative energy promotion center and similar organizations of Bangladesh after completing the necessary administrative procedures.
Likewise, initiatives will be taken from each side to create a tripartite mechanism in the bilateral meeting for cooperation in the electricity sector including electricity trade, construction of international transmission lines between Nepal, Bangladesh and India. Bangladesh informed the Nepali authorities regarding the electricity trade agreement between the Bangladesh Power Development Board and the Indian company Grandhi Mallikarjun Rao (GMR) regarding the purchase of electricity from the Upper Karnali Hydroelectric Project.
On May 1, 2080, the work progress decided by the sixth meeting of the joint working group was submitted under the co-chairmanship of Dr. Syed Masum Ahmed Chowdhury, Joint Secretary of the Ministry of Energy and Additional Secretary of the Ministry of Electricity, Energy and Minerals of Bangladesh. It included the construction and management of the international electricity transmission line, advancing the construction and development process of the Sunkoshi third hydropower project, developing the transmission system, etc.
Preparations were made to sign the electricity trade agreement last June. The agreement was prepared on the occasion of the Energy Secretary-level meeting of the two countries, but it was finally postponed. Due to the political changes in Bangladesh, the agreement was prepared in the presence of the energy ministers of Nepal, India and Bangladesh, but it was postponed at the last minute. The Interim Government of Bangladesh was intensively discussing the matter of taking electricity and necessary initiatives were being taken. Nepal will use the Indian transmission line to export electricity to Bangladesh during the rainy season.
Similarly, the necessary process for signing the joint venture agreement between the Nepal Electricity Authority and the Bangladesh Power Development Board for the construction and development of the Sunkoshi Reservoir hydropower project with a total of 680 megawatts has progressed. This is another important topic. The authority said that 40 megawatts of electricity will be sold to Bangladesh for six months of the rainy season for five years. The authority will sell electricity at eight rupees 17 taka (nine rupees 30 paisa) per unit. Electricity will go to Bangladesh through the Bahramapur-Bhermara 400 KV transmission line on Indian land through the Dhalkebar-Muzaffarpur international line which is currently in operation for the import and export of electricity between Nepal and India. The authority will get the fixed price at Muzaffarpur point in India. The technical leakage between Dhalkebar-Muzaffarpur transmission line will be borne by the authority itself.
Although it is symbolic, the sale of electricity in Bangladesh is considered as a success of Nepal. The government believes that it is important for Nepal’s electricity to reach other sub-regions after India. The authority will provide electricity to the Indian company NVVN. The same company will deliver Nepali electricity to Bangladesh. The authority has been saying that the electricity produced from Chilime and Trishuli hydropower plants will be exported to Bangladesh.
The government of Bangladesh has already announced that it will take 9000 megawatts of electricity from Nepal by 2040. Nepal and India have also signed a long-term agreement to export 10,000 electricity in 10 years. On July 13, a tripartite agreement was prepared in the presence of the energy ministers of Nepal, India and Bangladesh. Similarly, a meeting of energy secretaries of Nepal and Bangladesh was also organized. The program was postponed due to political changes in Bangladesh. A bilateral agreement on cooperation in the energy sector has already been signed between these two countries in 2075. If the agreement is implemented, the authority has forecasted that it will generate an income of Rs. 1 billion 230 million by selling electricity during the rainy season.
Bangladesh has expressed its desire to take 500 MW of electricity produced by the 900 MW Upper Karnali Hydropower Project to be built by the Indian company Grandhi Mallikarjun Rao (GMR). Although there have been many discussions about the electricity sales agreement, the final conclusion has not been reached. Similarly, the fifth meeting of the Energy Secretary-level joint directorate committee held on May 2, 2080 has reached an agreement to build a joint venture between the Sunkoshi Third Hydropower Project Construction and Development Authority and the Power Development Board of Bangladesh. In the same meeting, it was decided to instruct the technical team to study the possible options of international transmission lines for electricity trade between the two countries.
The first meeting of the energy secretary-level mechanism of the two countries was held in Kathmandu on 17 and 18 November 2075. In the same meeting, there was a preliminary discussion on the issue of facilitating Nepal’s electricity to Bangladesh. Before that, on 25th July 2075, an agreement was signed between the then Minister of Energy, Water Resources and Irrigation Barshaman Pun and Minister of State for Electricity, Energy and Mineral Resources of Bangladesh Nasrul Hamid for the purpose of starting bilateral cooperation in the electricity sector. After the same agreement, the meetings of the energy secretary-level mechanism of the two countries have been held regularly. At present, the authority is exporting electricity only to India.
