Nepal begins electricity export to Bangladesh ,reach to 5GW

Nepal has officially begun exporting 40 MW of electricity to Bangladesh, marking a significant milestone in regional energy collaboration. The electricity is being transmitted through India’s national grid, highlighting India’s critical role as a central enabler in South Asia’s cross-border power trade.

This trilateral energy exchange follows an agreement signed in October 2024 between the Nepal Electricity Authority (NEA), the Bangladesh Power Development Board (BPDB), and NTPC Vidyut Vyapar Nigam (NVVN), a subsidiary of India’s NTPC. The agreement establishes a framework for seamless electricity transmission across national borders in the region.

Nepal’s Energy Minister Dipak Khadka also noted that the country is currently exporting an additional 80 MW of power to Bihar, a state in eastern India. These exports, he said, signal the opening of a 5GW electricity export market for Nepal, driven by its rapidly growing hydropower sector.

India plays a central role in the region’s energy landscape—both as an importer and exporter of electricity. It supplies power to neighboring countries including Nepal, Bangladesh, and Myanmar, while also sourcing electricity from Nepal and Bhutan. Talks are underway to connect India’s power grid with Sri Lanka, further deepening regional energy integration.

Nepal’s energy export capabilities are supported by its advancing hydropower infrastructure. Among the key developments is the 900 MW Arun-3 hydroelectric project in Nepal’s Sankhuwasabha district, currently under construction by India’s Satluj Jal Vidyut Nigam (SJVN).

To facilitate expanded cross-border energy trade, India’s Power Grid Corporation and the Nepal Electricity Authority signed an agreement in April 2025 to develop high-capacity transmission lines linking the two countries. These lines are intended to support future electricity exchange at a larger scale.

With an installed generation capacity of over 3 GW, approximately 95% of which comes from hydropower, Nepal is actively pursuing Indian investment to bolster its generation capacity. The overarching goal is to meet domestic demand while producing a surplus for export to regional markets, especially to support India’s rising electricity needs.