The much-talked-about electricity export from Nepal to Bangladesh could start from the third week of July. With the preparation for signing a tripartite agreement among Nepal, India, and Bangladesh reaching the final stage, government officials are hopeful for a milestone electricity trade deal. The top officials of the Energy Ministry and Nepal Electricity Authority (NEA) said preparations are being made to export Nepali electricity to Bangladesh from the start of the new fiscal year through a tripartite agreement within a week or two. India had finally given its nod for the use of an Indian transmission line for exporting Nepali electricity to Bangladesh during Prime Minister Pushpa Kamal Dahal’s recent India visit.

Nepal and Bangladesh had agreed for a tripartite agreement with India for the export of 40 MW of electricity from Nepal to Bangladesh during the fifth meeting of the secretary-level Joint Steering Committee (JSC) on energy cooperation held in Dhaka in the third week of May.

As Indian transmission lines had to be used to materialize the power export, both countries had decided to bring the Indian agency on board. As per the understanding, NEA, Bangladesh Power Development Board (BPDB), and NTPC Vidyut Vyapar Nigam Limited (NVVN) of India will finalize a tripartite deal. Energy Ministry Spokesperson Madhu Bhetuwal said that preparation for the tripartite deal has reached the final stage. “It will be signed soon,” said Bhetwal. Similarly, a senior NEA official said that the final draft of the power purchase agreement (PPA) has been prepared and sent to Bangladesh. “Once Bangladesh gives its nod on the PPA, the tripartite agreement will be signed,” he said. Nepal's quest for finding a market for its electricity beyond India was further emboldened after Bangladesh expressed readiness to import 40-50 MW of power from Nepal during the energy secretary-level JSC meeting of the two countries held in Kathmandu in the last week of August. Nepal and Bangladesh last year agreed to request India for the passage of 40-50 MW of electricity from Nepal to Bangladesh through the existing transmission infrastructure of India.   Final agreement on long-term power deal in Indian cabinet The draft of the final agreement on long-term electricity trade between Nepal and India has also reached the Indian cabinet. Once the agreement is endorsed by the Indian cabinet, the final agreement on long-term electricity trade between India and Nepal will be signed. Nepal and India had signed an initial agreement between Nepal and India at the energy secretary level on June 2 in New Delhi. During Prime Minister Pushpa Kamal Dahal's India visit, the southern neighbor agreed to buy 10,000 MW of electricity from Nepal in the next 10 years. Nepal has been requesting the southern neighbor for a long-term power trade deal arguing that an inter-government agreement would lock in the market and end the unpredictability of the Indian market’s availability for electricity from Nepal in the long run. As Nepal faces the risk of spillage of electricity in this monsoon season, it is also all set to export 200 MW of electricity to India under a medium-term five-year deal. The 200 MW deal is outside the existing quota of 452.6MW which Nepal is selling in the Indian energy exchange. The NEA has forwarded the list of five projects -Solukhhola (Dudhkoshi), Super Madi, Upper Balephi ‘A’, Dordi Khola, and Upper Chaku ‘A’—under this deal to India. The export of 200 MW will begin once the Indian authorities approve these projects, according to NEA.