India on Friday said that the launch of 40 MW power from Nepal to Bangladesh was “an important step towards creating a South Asian Grid”.
“As future steps to increase the volume of power trade, it is important to interconnect national grids synchronously that will enable seamless flow of power in the region,” the Indian power ministry said after the inauguration of the first trilateral power transaction – from Nepal to Bangladesh through the Indian grid.
The Indian power ministry made the comment as Chief Adviser Dr Muhammad Yunus on last Wednesday shared an idea for greater electricity connectivity in the region, calling for the creation of a 'South Asian grid' to share hydroelectricity generated by Nepal and Bhutan.
Earlier on Friday, Indian Minister for energy and power Manohar Lal Khattar, his Bangladesh counterpart Md Fouzul Kabir Khan and Nepalese counterpart Dipak Khadka jointly inaugurated the historic milestone in regional energy cooperation.
This landmark development strengthens sub-regional connectivity and sets a new benchmark in the South Asian power sector.
The government of India had announced its decision to facilitate the first trilateral power transaction from Nepal to Bangladesh, through Indian grid with an export of upto 40 MW of power during the visit of the former Prime Minister of Nepal Pushpa Kamal Dahal ‘Prachanda’ to India from 31 May to 3 June 2023.
During the visit, both sides had expressed their commitment towards greater sub-regional cooperation, including in the energy sector, which would lead to increased inter-linkages between the economies for mutual benefit of all stakeholders.
Subsequently, a tripartite power sales agreement between NTPC Vidyut Vyapar Nigam, Nepal Electricity Authority and Bangladesh Power Development Board was signed on 3 October 2024 in Kathmandu.
The start of this power flow from Nepal to Bangladesh through the Indian grid is expected to boost sub-regional connectivity in the power sector, the Indian power ministry said.
Import of power sourced from hydropower from Nepal will help increase the share of renewable energy in Bangladesh’s power mix.