KATHMANDU: Nepal has begun exporting electricity to Bangladesh. Under a tripartite agreement signed on October 3, Nepal initiated the export of 40 megawatts of electricity to Bangladesh on Friday.
Chandan Kumar Ghosh, spokesperson for the Nepal Electricity Authority (NEA), confirmed that with approval from India, the electricity was successfully sent to Bangladesh on Friday.
The electricity export was officially launched during a ceremony organized by the Ministry of Foreign Affairs in Kathmandu.
Under the agreement, Nepal will export electricity to Bangladesh from June 15 to November 15 each year.
This year, the first shipment of electricity to Bangladesh occurred on Friday, with exports set to continue until November 15.
After this period, Nepal will have to wait until the next year to resume exports.
By exporting electricity to Bangladesh, Nepal is expected to earn around NPR 33 million per month.
Over a five-month period, a total of 1.44 million megawatt-hours will be exported.
At a rate of 6.40 US cents per unit, this will generate approximately 92 million US dollars in revenue over five months.
The agreement to sell 40 megawatts of electricity was originally signed on October 3 by Nepal, India, and Bangladesh, but the deal faced delays due to pending approval from India.
Kulman Ghising, the Executive Director of the Nepal Electricity Authority, noted that the agreement was finalized within a day this year after six years of preparation.
The Nepal-Bangladesh Power Sales Agreement (PSA) is now officially being implemented.
The electricity will come from the 25 MW Trishuli and 22 MW Chilime hydropower projects, which are developed by NEA’s subsidiary company with Indian financial support. Both projects have already received approval to sell electricity to India’s market.
This marks the first time Nepal will sell electricity in U.S. dollars, as it currently conducts electricity trade with India in Indian rupees.
The electricity will be exported to Bangladesh via the Dhalkebar-Muzaffarpur 400 kV transmission line, the first inland link between Nepal and India.
The electricity meter for the export will be located in Muzaffarpur, India.
As a result, the Nepal Electricity Authority will bear the technical losses that occur between Dhalkebar and Muzaffarpur.
From Muzaffarpur, electricity will be transferred to Bangladesh through the Behrampur (India)-Bhedamara (Bangladesh) 400 kV transmission line.
The NEA will receive payment for the electricity based on the readings from the Muzaffarpur meter.
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