Nepal Begins 40MW Electricity Export to Bangladesh via India's Grid

Nepal has initiated the export of 40 megawatts of electricity to Bangladesh, utilizing India's power grid. This move marks a significant step in regional energy cooperation, with the project stemming from an agreement signed in October 2024 by Nepal's Electricity Authority, Bangladesh's Power Development Board, and India's NTPC Vidyut Vyapar Nigam. This tripartite arrangement ensures seamless cross-border electricity transmission among the three nations.

Nepal's Energy Minister, Dipak Khadka, highlighted that the country is also exporting 80 megawatts of electricity to India's eastern state of Bihar. According to the minister, these exports open up a 500 megawatt market for Nepal. India plays a pivotal role in this dynamic, acting as both an importer and exporter of electricity in the region. It supplies power to neighboring countries such as Nepal, Bangladesh, and Myanmar, while also importing electricity from Nepal and Bhutan. Discussions are underway to connect India's grid with Sri Lanka's, further integrating the regional energy network.

This development coincides with Nepal's rapid expansion of its hydropower capabilities. The Indian company Satluj Jal Vidyut Nigam (SJVN) is currently developing a 900 megawatt Arun-3 hydropower project in Nepal's Sankhuwasabha district. In April 2025, India's Power Grid Corporation and Nepal's Electricity Authority agreed to build high-capacity cross-border transmission lines to support future electricity exchanges between the two countries.

Nepal's installed capacity exceeds 3 gigawatts, with hydropower accounting for 95%. The country is actively seeking investments from Indian entities to enhance its hydropower generation capabilities. The goal is to first meet domestic demand and then export surplus electricity, primarily to the growing market in New Delhi. This strategic move not only leverages Nepal's abundant water resources but also brings in much-needed revenue, contributing to the country's economic development.

The export of electricity to Bangladesh is a strategic move for Nepal, allowing the country to leverage its hydropower resources more effectively. Nepal's abundant water resources provide a significant advantage in generating hydroelectric power, which can be exported to neighboring countries during periods of high demand. This initiative is also expected to bring in much-needed revenue for Nepal, contributing to its economic development.

The agreement between the three countries is a testament to the growing regional cooperation in South Asia. By facilitating the export of electricity, Nepal, India, and Bangladesh are not only addressing energy needs but also strengthening their economic ties. This collaboration is likely to pave the way for future energy projects and infrastructure development in the region, benefiting all parties involved.

The successful implementation of this electricity export agreement is a positive step towards regional energy integration. It demonstrates the potential for South Asian countries to work together to address common challenges and achieve mutual benefits. As Nepal continues to develop its energy sector, it is poised to play a crucial role in the region's energy landscape, contributing to stability and growth.