KATHMANDU: Nepal has officially started exporting electricity to Bangladesh under a tripartite agreement signed with India and Bangladesh on October 3. The export of 40 megawatts of electricity began on Friday after India granted its approval, according to Chandan Kumar Ghosh, spokesperson for the Nepal Electricity Authority (NEA).

The electricity, sourced from Nepal’s Trishuli (25 MW) and Chilime (22 MW) hydropower projects, will be sent to Bangladesh via the Dhalkebar-Muzaffarpur transmission line in India and onward through the Behrampur-Bheramara link. Payments will be made in U.S. dollars based on meter readings at Muzaffarpur, marking Nepal’s first electricity trade in dollars.

The agreement allows Nepal to export electricity to Bangladesh annually from June 15 to November 15. For the current year, the export will generate an estimated $92 million in revenue, with monthly earnings of NPR 33 million. Over five months, Nepal will supply 1.44 million megawatt-hours of electricity to Bangladesh at a rate of 6.40 U.S. cents per unit.

The initiative culminates six years of preparation, with Nepal’s Executive Director of NEA, Kulman Ghising, highlighting the swift finalization of the agreement this year. The export was officially launched during a ceremony organized by Nepal’s Ministry of Foreign Affairs in Kathmandu.

This marks a significant milestone in Nepal’s electricity trade, as the country moves beyond bilateral trading with India to establish a foothold in the South Asian energy market. The arrangement also signals stronger regional cooperation in energy sharing and infrastructure development.