Marching towards sub-regional energy cooperation, Nepal has begun exporting electricity to Bangladesh through Indian transmission infrastructure.

The export of 40 megawatts (MW) of electricity follows the historic trilateral agreement signed on October 3 between the Nepal Electricity Authority (NEA), Bangladesh Power Development Board (BPDB), and India’s NTPC Vidyut Vyapar Nigam (NVVN). This agreement facilitates the transmission of Nepal’s hydroelectricity to Bangladesh through India’s cross-border grid.

Nepal will transmit the electricity via the 400KV Dhalkebar-Muzaffarpur line in India, which will relay the power to Bangladesh. The export, which began on Friday afternoon, will continue until midnight of the same day. The two sides have agreed to trade energy seasonally, from June 15 to mid-November, as per the trilateral agreement.

The three countries agreed to begin exports for at least one day to initiate the implementation of the tripartite agreement for this season.

NEA estimates an annual revenue of approximately Rs 330 million from the agreement. For Nepal, this marks the first instance of exporting electricity to a third country and earning payment in dollars.