Nepal Prime Minister KP Sharma Oli has announced that the planned electricity export agreement between Nepal and Bangladesh has been paused due to recent political changes in Bangladesh. The deal, which was set to export 40 megawatts of electricity to Bangladesh via India, is currently on hold following the political upheaval in Bangladesh.
Prime Minister Oli explained that the agreement, which was to be finalised on July 28, 2024, in Kathmandu, was cancelled due to the political turmoil in Bangladesh.
The deal involved Nepal Electricity Authority, Bangladesh Power Development Board, and India's NTPC, and was scheduled to be signed in the presence of energy ministers from Nepal, India, and Bangladesh.
The recent instability in Bangladesh, which led to the resignation of Prime Minister Sheikh Hasina on August 5, has resulted in the formation of an interim government led by Nobel laureate Mohammad Yunus. This shift in governance has delayed the agreement.
Despite this setback, the Nepali government remains committed to finalising the deal as soon as possible. Prime Minister Oli highlighted the importance of this agreement, noting that it would mark a significant milestone in South Asia’s regional energy cooperation. This would be the first instance of Nepal exporting electricity to Bangladesh.
The Prime Minister also mentioned that negotiations are ongoing between the Ministry of Foreign Affairs and the Ministry of Energy, Water Resources, and Irrigation of Nepal to ensure the agreement can be signed promptly once the situation stabilises. The government of Bangladesh has already set the price per unit for the exported electricity and communicated this to Nepal.
Looking ahead, Prime Minister Oli emphasised Nepal’s long-term energy goals. The government has signed an agreement to export 10,000 megawatts of electricity to India over the next decade.
The "Energy Development Roadmap and Action Plan-2080" outlines a plan to generate a total of 28,500 megawatts of electricity by the fiscal year 2034-35, with substantial portions earmarked for export to neighbouring countries.
Currently, Nepal’s electricity generation capacity stands at around 3,240 megawatts. The roadmap aims to address domestic demand while significantly expanding export capacity. The plan is presented to the Council of Ministers and represents a strategic move to enhance Nepal’s role in regional energy markets.
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