NEW DELHI — In a historic milestone for regional energy cooperation, India, Nepal, and Bangladesh have launched the first-ever trilateral power transaction through the Indian grid. The virtual event, hosted by Nepal’s Ministry of Energy, Water Resources and Irrigation, was jointly inaugurated by India’s Union Minister for Power and Housing & Urban Affairs, Shri Manohar Lal, Nepal’s Minister of Energy, Water Resources and Irrigation, Mr. Dipak Khadka, and Bangladesh’s Adviser to the Ministry of Power, Energy and Mineral Resources, Md. Fouzul Kabir Khan.
The initiative, which involves the use of high-voltage direct current (HVDC) technology, enables the flow of up to 40 megawatts of power from Nepal to Bangladesh via India. This signifies a significant step toward greater sub-regional connectivity in the energy sector.
“A Landmark feat in Regional Energy Cooperation! Virtually inaugurated the first-ever power transaction from Nepal to Bangladesh via the Indian grid today. This historic initiative reflects India’s commitment to fostering regional energy integration and sustainable growth in South Asia,” said Lal on X (formerly Twitter.
The foundation for this agreement was laid during the visit of former Nepalese Prime Minister Pushpa Kamal Dahal, also known as Prachanda, to India in June 2023. During that visit, both countries reaffirmed their commitment to sub-regional energy cooperation, emphasizing the importance of linking economies to unlock shared growth potential.
A formal tripartite power sales agreement was subsequently signed on October 3, 2024, in Kathmandu between NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority, and Bangladesh Power Development Board.
While this collaboration is expected to strengthen regional energy security and facilitate greater integration of the power markets in South Asia, it also presents potential challenges such as technical issues and regulatory complexities. The initiative, however, reflects the growing recognition of shared challenges and opportunities in achieving energy sustainability.
The power flow marks a new chapter in cross-border energy collaboration, setting the stage for future projects that could expand the scope and scale of energy cooperation among the three nations.
