Bangladesh, India and Nepal inked the much-awaited tripartite agreement on Thursday to export electricity to Bangladesh.

The agreement involve the Nepal Electricity Authority (NEA), National Thermal Power Corporation Vidyut Vyapar Nigam Limited of India, and the Bangladesh Power Development Board (BPDB), according to Kul MAN Ghising, Managing Director at the Nepal Electricity Authority, PTI reported today from Kathmandu.

Under the terms of agreement, the NEA will get 6.40 US cents per unit of electricity. The Indian side is involved in the deal as Nepal and Bangladesh would use India's transmission line to distribute electricity through its territory.

Earlier, the agreement was scheduled for July 28, which was postponed due to political turmoil and a change of government in Bangladesh.The NEA plans to sell electricity to Bangladesh annually from June 15 to November 15.

To begin with, Nepal will export 40MW of electricity generated in the country to Bangladesh through India.

The expected export is 144,000 megawatt-hours and the NEA estimates earnings of USD 9.216 million over these five months, according to the media reports in Nepal.Electricity will be exported to Bangladesh using the Dhalkebar-Muzaffarpur 400kV transmission line, with the metering point in Muzaffarpur in Bihar state.

The NEA will bear any technical losses incurred in the transmission line from Dhalkebar to Muzaffarpur. Electricity will reach Bangladesh through the 400kV transmission line from Baharampur (West Bengal) to Bhedamara (Bangladesh).

The NEA intends to export electricity generated from its 25-megawatt Trishuli project and 22-megawatt Chilime project both of which have received approval for electricity exports to India.

According to sources at the Ministry of Energy, Water Resources and Irrigation, meetings at the energy secretary and joint-secretary levels were held in Kathmandu on Tuesday and Wednesday to prepare for the agreement.

The NEA plans to sell electricity to Bangladesh annually during the rainy season, from June 15 to November 15. In the beginning, Nepal will export 40 MW of electricity generated in the country to Bangladesh through India. The expected export is 144,000 megawatt-hours, and the NEA estimates earnings of USD 9.216 million over these five months, according to the media reports.

Electricity will be exported to Bangladesh via the Dhalkebar-Muzaffarpur 400 kV transmission line, with the metering point in Muzaffarpur.

On December 6, 2023, Bangladesh's Cabinet Economic Affairs Committee approved to import 40 megawatts of electricity from Nepal.