Seeking to secure a steady supply of electricity, the Bangladesh Power Development Board (BPDB) has written to the Nepal Electricity Authority (NEA) to finalize a sale agreement for 40 megawatts (MW).
The BPDB on Monday sent a letter informing that the tender submitted by the NEA for the sale of 40 MW electricity for 6 months during rainy season has been accepted by the relevant authorities.
The BPDB on January 1, 2024 called for tenders for the purchase of 40 MW of electricity produced in Nepal for a period of five years as per the tripartite agreement reached between Bangladesh, India and Nepal.
The Authority shall give a written notice of acceptance of the bid to the BPDB within seven days. After that, the BPDB will provide the draft power sale agreement to the Authority. Agreement should be inked within 28 days of receiving the draft. There will be a tripartite agreement between the NEA, NTPC Vidyut Vyapar Nigam Ltd., India and the BPDB.
NEA's Managing Director, Kulman Ghising, announced the commencement of electricity exports to Bangladesh this rainy season. He confirmed that all necessary procedures have been finalized.
"Since the three bodies have agreed on the draft of the tripartite electricity sale agreement, the agreement will be reached soon. Then, following the finalization of project details, we will submit a list to the Central Electricity Authority of India for the approval of power export to Bangladesh. Since new projects will take time for approval, the electricity produced from the projects that have already received electricity export approval in India will be exported to Bangladesh. We will send the proposal for approval,” he said.
The authority has prepared to export the electricity produced by the 25 MW Trishuli and 22 MW Chileme Hydropower Projects built by its subsidiary company, which were built with Indian subsidy and owned by it. Both these projects have received approval for power export to India.
6.40 US cents per unit for 5 years
The NEA will sell 40 MW of electricity to Bangladesh for six months during the rainy season, i.e. from June 15 to November 15 every year for five years. The Authority will get 6.40 US cents per unit for selling electricity to Bangladesh.
The Authority will get the price of electricity exported to Bangladesh through the inter-country Dhalkebar-Muzaffarpur 400 kV transmission line between Nepal and India.
Technical leakage of transmission line from Dhalkebar to Muzaffarpur will be borne by the Authority. Electricity will reach Bangladesh through Baharampur (India)-Bheramara (Bangladesh) 400 kV transmission line from Muzaffarpur through India's transmission line.
NEA MD Ghising said that Bangladesh will bear all the taxes and fees including transmission line fees, leakages, trading margin taken by NVVN after the Muzaffarpur point. He shared that per unit rate of electricity will be around 7.6 cents when it reaches the Bangladesh border.
