South Asian countries near ‘milestone’ electricity trade deal

Three South Asian countries are on the brink of a landmark power trade agreement that will reshape the region’s energy landscape.

The deal will allow Bangladesh to import hydro-electricity from Nepal through India’s grid.

Authorities from Bangladesh and Nepal have recently finalized a deal with India on the use of a high-voltage transmission line, paving the way for the signing of the three-way pact in the next month.

Bangladesh has been struggling with frequent blackouts due to a fuel shortage caused by a foreign currency crunch, while Nepal produces excess hydroelectricity during its wet season.

The agreement involves utilizing the Bahrampur-Bheramara high-voltage line, connecting Bangladesh’s western grid with India’s eastern grid, and facilitating bilateral electricity trade.

Initially, Nepal plans to export 50 megawatts of electricity to Bangladesh, potentially increasing it to 500 MW within a year. Both countries are also considering a dedicated transmission line through India.

This deal will supplement Bangladesh’s existing generation capacity and help address its operational challenges.

It is a significant milestone for South Asia, promoting regional interconnections and energy sustainability.

Nepal sees it as a symbolic and important arrangement, marking its first electricity export beyond India.

These countries aim to boost their use of renewable energy, and Nepal’s abundant water resources can help them achieve their targets.

Establishing regional grid connectivity will benefit the entire South Asian region by harnessing clean energy sources.