It is not certain whether additional electricity will be exported from next Ashar as approval from India's Central Electricity Authority, the decision of the Nepal-India Energy Secretary-level Joint Steering Committee, and a new tripartite agreement are pending.
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Nepal's process of exporting an additional 20 megawatts of electricity to Bangladesh is still in limbo due to India's approval. Nepal has been exporting 40 megawatts of electricity to Bangladesh since 1 Ashar this year. However, it is not certain whether the additional 20 megawatts of electricity will be exported from Ashar as the approval of India's Central Electricity Authority (CEA), the decision of the Nepal-India Energy Secretary-level Joint Steering Committee (JSC), and the revised or new tripartite agreement are pending.
Nepal has been exporting electricity remaining after domestic consumption to India and Bangladesh during the rainy season. During the winter season, electricity has to be imported from India to meet domestic demand. The Nepal-Bangladesh Energy Secretary-level Joint Steering Committee (JSC) meeting held in Dhaka on 11 Mangsir 2082 had agreed to export an additional 20 megawatts of electricity as per the current 40 megawatt agreement. Accordingly, an agreement was reached to proceed with the necessary procedures.
Nepal Electricity Authority has sent a formal request to NTPC Vidyut Vyapar Nigam Limited India (NVVN) for an additional 20 MW export. Now the process will proceed from India, said Tharka Bahadur Thapa, Director of the Electricity Trade Department of the Authority. He said that India's CEA should give approval to export an additional 20 MW of electricity.
The upcoming Energy Secretary-level Joint Steering Committee (JSC) and Joint Secretary-level Joint Working Group (JWG) meetings to be held in Nepal will also have to take the necessary decision on selling an additional 20 MW of electricity to Bangladesh. The date of the meeting will be proposed soon, said Chiranjivi Chataut, Secretary of the Ministry of Energy.
'Now both the meetings will be held in Nepal, we will propose the date soon. And, we will decide when to hold them,' Chataut said, 'The JSC meeting will also have necessary discussions on the issue of exporting 20 MW of electricity to Bangladesh.' He said that although the date of the JSC meeting was proposed earlier, it could not be held due to various reasons.
Earlier, the Nepal-India JSC meeting had decided to enter into a tripartite agreement for the export of 40 MW of electricity to Bangladesh. The JSC meeting held on 20 Paush 2080 had given in-principle agreement to enter into a tripartite agreement soon between the Authority, NVVN and Bangladesh Power Development Board (BPDB) to export 40 MW of electricity from Nepal to Bangladesh using India's transmission system as per India's Electricity Import-Export Directive.
On 16 Asho 2081, a JSC meeting was held between Nepal and Bangladesh and an agreement was reached to enter into a tripartite agreement. The next day, on 17 Asho 2081, a tripartite agreement was signed between Nepal Electricity Authority, BPDB of Bangladesh and NVVN of India. As per the same agreement, 40 MW of electricity is being exported every year from 15 June to 15 November 2081. Now, the Nepal-India JSC will discuss and take necessary decisions for an additional 20 MW. A new tripartite agreement will be made after the approval of India's CEA. The current 40 MW will be increased to 60 MW, while other arrangements will remain the same, the authority has stated.
Nepal first exported electricity to Bangladesh for 12 hours on 30 Kartik 2081. Nepal's electricity reaches India through the Dhalkebar-Muzaffarpur 400 kV transmission line. From there, it is transported to Bangladesh through the Behrampur-Bhedamara 400 kV line. Currently, the 40 MW electricity approved for export is being produced by the Trishuli and Chilime Hydropower Projects. These projects have also received approval for export to India. Therefore, even after receiving approval, the projects will have to obtain separate permission from India for the 20 MW used for export to Bangladesh. Only then will the actual export begin.
Nepal has been selling electricity to Bangladesh at a rate of 6.40 US cents per unit. The authority has stated that an additional 20 MW will also be sold at the same rate. So far, Nepal has received approval to export 1,165 MW of electricity to India and Bangladesh. Electricity is being sold at competitive rates on the Indian Energy Exchange (IEX)'s 'day ahead' and 'real time market'. Nepal is also selling electricity under a mid-term agreement with NVVN.
Electricity trade with India is done in Indian rupees. Trade with Bangladesh is done in dollars. The Indian government had first allowed the import of 39 MW of electricity from Nepal in October 2021. Although Nepal and Bangladesh have agreed to export an additional 20 MW of electricity, it is not certain that the export will start this year unless India approves.
