A major step in regional energy cooperation has been achieved as Nepal resumed exporting hydropower electricity to Bangladesh through India’s transmission network, strengthening cross-border power trade in South Asia.

Under the arrangement, Nepal has restarted the supply of 40 megawatts (MW) of clean hydropower to Bangladesh via India’s electricity grid. The supply is scheduled for the monsoon period (June to November), when Nepal generates surplus electricity due to increased river flow.

This power transfer process is taking place within a tri-lateral arrangement whereby India, Nepal, and Bangladesh are involved, and this arrangement ensures that there can be exchange of electricity using the transmission facilities in India despite the fact that Nepal and Bangladesh do not have any transmission line connecting them.

According to officials, the arrangement comes under the framework of a regional energy cooperation system which seeks to promote sharing of cleaner energy sources, increase stability of the power grid and decrease reliance on fossil fuel sources in South Asia. Nepal gets an opportunity to earn revenue from the excess hydro-energy generated in high season, while Bangladesh gets access to cheap renewable energy.

The agreement has also been viewed as a concrete illustration of energy integration in which nations maximise their infrastructure to ensure that they match supply and demand. Nepal usually exports electricity in times of heavy rainfall because this is when electricity production rises, while in dry periods, Nepal imports electricity.

Nevertheless, the supply is limited by a ceiling of 40 MW, as a further planned export of 20 MW has still not been approved due to problems related to the shortage of transmission capacity in the Indian electricity grid system. In spite of this problem, the present system is highly appreciated for its success.

Energy experts note that such initiatives are gradually shaping a more integrated South Asian power market, improving energy security, lowering costs, and supporting the transition toward renewable energy across the region.