- The price per unit will be Tk 3-5
- To be added to the national grid in September
We have a friendly relationship with Nepal. I hope to get electricity at a lower price.
Mohammad Hossain,
Director General, Power Cell
We have agreed to a 25-year power agreement with Bangladesh
Kul Man Ghising,
MD, Nepal Electricity Authority
After the Ukraine-Russia conflict, the price of fuel has increased in the world market. There is also a dollar crisis in the country. As a result, the government is looking for alternatives to coal, oil and gas in the power sector. The power division started the process of generating electricity from renewable sources. As such, the government has emphasized on solar power. Renewable energy will add a new dimension to the country's electricity. Hydropower is also going to be added to the country's grid. This electricity will come from friendly country Nepal. Another neighbour and friendly country, India, 40 MW of hydropower will come to the country in early July using transmission lines.
A 25-year tripartite agreement will be signed this month to supply electricity produced in Nepal to Bangladesh via India. An agreement has already been reached in principle to bring this power from Nepal using Indian transmission lines. Once the agreement is completed, 40 MW of electricity from Nepal will be transited through the Indian grid and will enter Bangladesh. Nepal Electricity Authority (NEA) officials confirmed the matter.
Meanwhile, a Bangladesh-Nepal joint steering committee has been formed on cooperation in the power sector. Part of the new transmission line will be built within India's territory, so the matter will be decided through the Bangladesh-India-Nepal tripartite agreement.
Earlier, representatives of the two countries discussed the signing of an agreement on the import of 500 MW of electricity from the 900 MW Upper Karnali Hydropower Plant under construction in Nepal by India's GMR Group.
Nepal Electricity Authority Managing Director Kul Man Ghising said, "We have agreed to a 25-year power agreement with Bangladesh. This decision has been taken on the basis of our proposal to Bangladesh.
Prabal Adhikari, director of energy trade at Nepal Electricity Authority, said Bangladesh first wanted to sign a five-year renewable agreement based on Nepal's proposal. Due to the uncertainty of the power sector, Dhaka showed interest in short-term contracts instead of long terms.
However, Bangladesh finally agreed to a 25-year agreement, said Kul Man Ghising, managing director of the company. "We have agreed on everything but the price," he said.
Nepal's electricity from Bangladesh will come through India. When a tripartite agreement is signed between India, Bangladesh and Nepal; Then the agreement for import of electricity will be signed. And the deal will also include the issue of price.
Authority officials said Bangladesh first showed interest in resolving technical and commercial issues, including electricity prices. The two countries later reached a consensus on those issues.
As a sign of friendly relations with Bangladesh, Nepal has kept open the way for talks on electricity pricing, Kul Man Ghising said. "As part of the friendship, we are planning a good price offer. Because it will be a government-to-government agreement. The current price of electricity in Bangladesh can be taken as an example. However, the price has not been fixed yet.
Officials say there is no problem even if the amount of imports is low. The big thing is that we are getting electricity at a lower price. Let's start first and then we will increase imports in phases.
When asked about the price, Power Cell Division Director General Mohammad Hossain said, "We have a friendly relationship with Nepal. We are hoping to get electricity at a lower price. Where it costs 15 to 20 taka to produce electricity from oil, gas or coal, this power will be available at only 3 to 5 taka.
"We hope that at the outset, 40 MW of electricity contracted through India's transmission line will be added to Bangladesh’s grid," he said. We hope this will bring about a big positive change in our power sector. At least, what we get from here is a benefit for us.
The fifth meeting of the Secretary-level Joint Steering Committee on Energy Cooperation between Nepal and Bangladesh was held in May this year. In that meeting, the two sides agreed to start power trade with India. Bangladesh will import this electricity through Berhampur grid in India and Bheramara grid in Bangladesh.
JH
