Under the proposed deal, Nepal will supply up to 500 megawatts (MW) of hydropower to Bangladesh by leveraging India’s high-voltage transmission line. The tripartite deal aims to boost cross-border electricity trading in South Asia.
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In an effort to actuate greater energy connectivity and boost cross-border electricity trading in South Asia, the three neighbouring countries India, Nepal and Bangladesh are working on a first-of-its-kind tripartite power trade pact.
Under the proposed deal, Nepal will supply up to 500 megawatts (MW) of hydropower to Bangladesh by leveraging India’s high-voltage transmission line. The electricity will be supplied from Nepal’s 900 MW Upper Karnali hydropower project. Nepal shall initially supply 50 MW to Bangladesh, using India’s Baharampur-Bheramara cross-border transmission line.
India, in turn, has asked Bangladesh to provide access for setting up transmission lines connecting India’s North-Eastern states.
Nepal and Bangladesh have identified two corridors for a dedicated transmission line. First is the Anarmari (Nepal)-Panchagarh (Bangladesh) corridor. It has a total length of 49 km, of which 24 km will be in India. Second is the Anarmari (Nepal)-Thakurgaon (Bangladesh) corridor. It has a total length of 83 km, of which 33 km shall be in India.
India is already running the world’s largest single-grid infrastructure. In view of the increasing demand for power especially for the renewables in South Asia, and considering Nepal’s hydro-power potential, India can leverage its grid for supplying electricity in the region.
According to a senior Indian government official, “India is open to permit the transit of electricity from Nepal or Bhutan to countries such as Bangladesh or even Sri Lanka if they have grid interconnection capacity available and they are able to harmonise grid operations with India.”
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