Bangladesh is set to buy electricity currently being wasted in Nepal. Similarly, Bangladesh will also move ahead with homework to sign long-term power purchase agreement (PPA) with Nepal’s private sector, according to a statement issued by Confederation of Nepalese Industries (CNI).
Due to lack of market management in Nepal, about 500 MW of electricity was wasted in the last rainy season. It has caused a loss of Rs. 5 billion. Electricity generated in Nepal is being wasted due to lack of adequate transmission lines and internal and external markets.
During a meeting with a delegation of the Confederation of Nepalese Industries (CNI), which is on a visit to Bangladesh, Minister of State for Power, Energy and Mineral Resources of Bangladesh Nasrul Hamid said that the electricity generated in Nepal would be procured from next year.
“The electricity generated in Nepal is being wasted without being consumed,” he said. “We can buy that electricity.”
He said that the transmission line would be strengthened for the import of electricity from Nepal and construction of dedicated line would also be started.
Minister of State Nasrul said that about 3,500 MW of electricity generated in Nepal will be purchased by 2026.
He also pledged to discuss the issue with Nepal’s private sector from January 2022 and to complete the work by March 2022. “I will visit Nepal in March to resolve this issue,” he said.
He also said that the Bangladesh Energy Development Board to start the homework of signing power purchase agreement (PPA) directly with 16,000 MW capacity hydropower project in Nepal which has obtained survey license.
The door to trilateral electricity trade has opened since India issued the Cross Border Energy Trade Procedure in March 2021.
This procedure has ended the dilemma regarding regulation and legal mechanism in international electricity trade. Although India is a potential market for Nepal’s electricity, the private sector has become optimistic about cross-border electricity trade with Bangladesh’s commitment.
Bangladesh needs 24,000 MW of renewable energy by 2040 and plans to shut down coal-fired power generation in the next four years.
Electricity generated in Nepal is half as cheap for Bangladesh as it is now.
During the meeting, President of the Confederation of Nepalese Industries Vishnu Kumar Agrawal urged to open the way for investment in hydropower in Nepal for Bangladeshi investors.
He also requested the Minister of State to purchase electricity through PPA directly with the private sector of Nepal.
Ashish Garg, chairman of the infrastructure committee of CNI and vice-chairman of the Independent Power Producers’ Association Nepal, presented on power generation and power consumption situation of Nepal.
Source : TRN,
