Kathmandu, Ashoj 2 (Sep 18): Intensive discussions have started in recent days regarding the electricity trade agreement between Nepal and Bangladesh, which was delayed due to the political changes in Bangladesh. On the 30th of Bhadra last, there was an important discussion on electricity trade in a courtesy meeting held by Bangladesh Ambassador to Nepal Salahuddin Noman Chaudhary with Energy, Water Resources and Irrigation Minister Deepak Khadka.
It is said that the same issue was discussed in the meeting that Nepal’s ambassador to Bangladesh, Ghanshyam Bhandari, had with the head of the interim government, Muhammad Yunus, on Tuesday. Earlier, it was planned to sign the agreement on electricity trade last June. Although the agreement was prepared at the Energy Secretary-level meetings of the two countries, due to various reasons, it could not take shape at that time. Earlier, Bangladesh has agreed to take 40 megawatts of electricity in the first phase.
Due to the recent 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 moment. The Ministry of Energy, Water Resources and Irrigation has stated that the interim government of Bangladesh is intensively discussing the issue of electricity supply and is taking necessary initiatives. In the meeting with Energy Minister Khadka, various issues of energy cooperation between Nepal and Bangladesh were discussed. In that meeting, Energy Minister Khadka said that there is a huge potential of hydroelectricity in Nepal and the increasing need of energy in Bangladesh, the meeting will help in deepening the energy cooperation between the two countries.
On that occasion, the meeting of the secretary and joint secretary level of the two countries was held to discuss and decide on various important issues including cooperation in the construction of large hydropower projects, the agreement of the Indian side on the international transmission line and the start of electricity trade.
Energy Minister Khadka said that by signing a historic tripartite electricity trade agreement between Nepal Electricity Authority, Bangladesh Power Development and Electricity Trading Corporation of India, Nepal will use the Indian transmission line to export electricity to Bangladesh during the rainy season, opening the door to electricity trade between the two countries. For the construction and development of the Sunkoshi Reservoir Hydropower Project with a total of 680 MW, the necessary process for signing the joint venture agreement between the Nepal Electricity Authority and the Bangladesh Power Development Board has progressed. He mentioned that it is necessary to take necessary initiatives from the Bangladesh government and the embassy here.
In that meeting, Ambassador Chaudhary said that Bangladesh is trying to advance the energy cooperation between Nepal and Bangladesh by signing a 40 MW electricity purchase agreement in the near future. He was of the opinion that Bangladesh would provide necessary support in the development of power generation, trade and transmission lines. The Nepal Electricity Authority has 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 8.17 taka (nine rupees 30 paisa) per unit. It is said that the issue of 40 megawatts of electricity was also discussed during the courtesy meeting held by Ambassador Bhandari with the head of the interim government of Bangladesh, Yunus.
Electricity will go to Bangladesh from 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 of the transmission line and the technical leakage between Dhalkebar-Muzaffarpur will be taken care of by the authority.
Electricity will go to Bangladesh through Bahrampur-Bhermara 400 KV transmission line on Indian soil. Although it is symbolic, the sale of electricity in Bangladesh is considered as a success of Nepal. The government is of the opinion that it is important for electricity to reach Nepal sub-regionally after India. The authority will provide electricity to the Indian company NVVN. The same company will deliver Nepali electricity to Bangladesh. In particular, 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 signed a long-term agreement to export 10,000 megawatts of electricity in 10 years. Also, if electricity is exported to Bangladesh, it will have strategic importance. A tripartite agreement was prepared in the presence of the energy ministers of Nepal, India and Bangladesh on July 13th. A meeting of energy secretaries of Nepal and Bangladesh was organized. The program was postponed due to the political changes in Bangladesh. The bilateral agreement between Nepal and Bangladesh regarding cooperation in the energy sector has already been signed in 2075. According to the forecast made by the Authority, by selling electricity during the rainy season, the income will be Rs. 1.23 billion.
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). The issue of electricity exchange between Nepal and Bangladesh has been discussed many times. In addition to the government level, the private sector has already discussed cooperation with each other.
The agreement to build a joint venture between the Sunkoshi Third Hydropower Project Construction and Development Authority and the Power Development Board of Bangladesh has been completed by the fifth meeting of the Joint Director Committee of Energy Secretary level held on 2nd May 2080. 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. On 25th July 2075, an agreement was signed between the then Minister of Energy, Water Resources and Irrigation Barshman Pun and Minister of State for Electricity, Energy and Mineral Resources of Bangladesh Nasrul Hamid for the purpose of starting bilateral cooperation in the field of electricity. 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. The Authority has exported 18,164 megawatt hours of electricity to India on Tuesday alone. The total demand within the country is equal to 2,126 megawatts.
