In a landmark development for sub-regional energy cooperation, Nepal has begun exporting electricity to Bangladesh through Indian transmission infrastructure, marking the first instance of Nepal trading power with a third country.

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.

The energy export was virtually inaugurated by Energy, Water Resources and Irrigation Minister Deepak Khadka of Nepal; Power, Housing and Urban Affairs Minister Manohar Lal of India; and Energy Advisor Muhammad Fouzul Kabir Khan of Bangladesh on Friday.

Minister Khadka highlighted the event as a milestone and a reflection of the shared vision for a sustainable and interconnected energy future.

“This milestone is a reflection of our shared vision for a sustainable and interconnected energy future in South Asia,” he said.

The Indian Ministry of External Affairs mentioned the deal as a significant step in promoting sub-regional energy connectivity.

“The start of this power flow from Nepal to Bangladesh through India is expected to boost sub-regional connectivity in the power sector,” read the statement issued by the MEA, India.

Nepal will transmit the electricity through the 400KV Dhalkebar-Muzaffarpur line in India, which will relay the power to Bangladesh. The export that started Friday afternoon will last only until Friday midnight. The two sides have agreed to trade energy during the period from June 15 to mid-November. The three countries worked to export at least for a day so as to start the implementation of the tripartite agreement from this season.

NEA estimates an annual revenue of approximately Rs330 million from the deal. For Nepal, this is the first instance of exporting electricity in dollars.

Energy officials have praised the agreement as a milestone for South Asian cooperation. Bangladeshi Minister Syeda Rizwana Hasan stressed the importance of Nepal's hydroelectricity in addressing Bangladesh's renewable energy needs, as hydropower constitutes only 1 percent of its energy mix.

This first-of-its-kind deal is expected to bolster regional energy integration and pave the way for further cooperation in South Asia.