Nepal has started exporting 40 megawatts (MW) of electricity to Bangladesh through India’s power grid, marking its first foray into the international energy market and positioning India as a regional conduit for electricity trade.
The transaction stems from a tripartite agreement signed in October between Nepal Electricity Authority, Bangladesh Power Development Board, and India’s NTPC Vidyut Vyapar Nigam. In addition to the Bangladesh export, Nepal is also sending 80 MW to the Indian state of Bihar, Energy Minister Dipak Khadka said on social media platform X on Sunday.
The minister said the exports open the door to a potential 5,000 MW market for Nepal’s electricity in the region.
India currently exports electricity to Nepal, Bangladesh and Myanmar while importing power from Nepal and Bhutan. New Delhi is also exploring plans to integrate its power grid with Sri Lanka to further enhance regional connectivity.
Nepal, with an installed capacity of over 3,000 MW—95% of which comes from hydropower—has been rapidly expanding its energy infrastructure. Indian state-run hydropower company SJVN is developing the 900 MW Arun-3 project in eastern Nepal’s Sankhuwasabha district.
In April, Nepal and India agreed to implement new high-capacity cross-border transmission lines to support growing power trade volumes.
Nepal is also seeking more Indian investment in its hydropower sector to increase generation and export surplus electricity to neighboring markets.
