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Powering the future: Nepal, Bangladesh ink 25-year electricity deal

DHAKA, Bangladesh – Bangladeshi officials have agreed to sign a 25-year agreement with Nepal to import 40MW of electricity.

According to the Kathmandu Post, the agreement with Bangladesh is comparable to the intergovernmental power trade agreement with India.

According to the report, the two parties deliberated on the electricity price and agreed on the contract duration.

The report said that the Nepalese side intends to offer a “good tariff as a good gesture” because the agreement will be between governments.

According to the report, existing power prices in Bangladesh can be used to determine tariffs.

Despite ongoing negotiations over electricity tariffs, the duration of the agreement has been finalized, ensuring a long-term market for Nepal’s electricity in Bangladesh.

According to the proposed power purchase and sale agreement, Bangladesh must pay transmission and service fees directly to the Indian nodal agency for cross-border power trade. These fees will be levied under India’s open access regulations.

Bangladesh and Nepal have agreed to seek permission from India for power trade via the high-voltage Baharampur-Bheramara cross-border transmission line.

The proposed agreement will be finalized through a tripartite agreement between Nepal, India, and Bangladesh concerning electricity transmission from Nepal to Bangladesh via Indian territory.

Bangladesh and Nepal agreed at the energy secretary level in May last year to sign a tripartite deal involving the Bangladesh Power Development Board (BPDB), NEA, and India’s NTPC Vidyut Vyapar Nigam Ltd (NVVN).

Following the signing of the agreement, NVVN will enable power export from Nepal to Bangladesh.

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