Nepal starts exporting electricity to Bangladesh amid energy crisis

Nepal has officially commenced the regular commercial export of electricity to Bangladesh as of June 15, 2025. This new venture highlights Nepal's entry into the international electricity market, moving beyond its traditional trade with neighboring India. The initial phase involves transmitting 40 megawatts of electricity to Bangladesh through Indian territory, facilitated by a five-year agreement signed with the Bangladesh Power Development Board and India’s NTPC Vidyut Vyapar Nigam. The spokesperson for the Nepal Electricity Authority, Rajan Dhakal, confirmed that these supplies will continue during the monsoon season, spanning from mid-June to mid-November. This development comes in light of Nepal's notable progress in energy production and a shift towards energy exports, capitalizing on its surplus electricity generation capabilities. The country's installed capacity now exceeds 3,500 megawatts, which has evolved due to extensive dam constructions and efforts to enhance infrastructure in the energy sector. As a result, nearly all of Nepal's 30 million population are connected to the national grid, contrasting starkly with the situation at the turn of the century when about four in five people lacked electricity access. While Nepal has been exporting smaller amounts of electricity to India since late 2021, this collaboration with Bangladesh marks a significant expansion of its energy market. The strategic partnership comes at a critical time for Bangladesh, which has been facing severe energy shortages and power outages primarily due to its heavy reliance on fossil fuels. By securing a new source of renewable energy from Nepal, Bangladesh aims to alleviate its power crisis and enhance energy security, which has been a pressing concern over the past year. Energy minister Dipak Khadka expressed optimism about this endeavor, emphasizing that this is only the start of Nepal's journey as an energy exporter. He underscored the country's commitment to regional energy security while acknowledging concerns from conservationists about the potential environmental impacts of rapid hydroelectric development. Despite the criticism, the flow of energy to Bangladesh signifies a new era of regional cooperation in energy trade, benefiting both countries and potentially setting the foundation for future collaborations as Nepal continues to harness its vast hydropower potential.