In News:

Nepal starts exporting energy to Bangladesh with Indian grid support.

Significance of the Power Transfer:

• Energy Cooperation:
  • A major step in regional energy cooperation among Nepal, India, and Bangladesh.
  • Strengthens sub-regional connectivity in the power sector.
• Nepal’s Hydropower Potential:
  • Nepal, a Himalayan nation, possesses untapped hydropower resources, and this agreement opens the door for future cross-border electricity cooperation.
  • Nepal’s energy exports are a green energy initiative, supporting sustainable industrial growth in Bangladesh and regional prosperity.
• Electricity Crisis in Bangladesh:
  • Bangladesh is facing an ongoing electricity shortage, worsened by the suspension of power supply from Adani’s Godda plant and the maintenance of the Payra thermal unit.
  • The addition of 40 MW of Nepalese hydroelectric power aims to alleviate the energy shortfall in Bangladesh.

Tripartite Power Sales Agreement:

• Agreement Details:
  • The agreement for power transfer was signed in October 2023 between:
    • NTPC Vidyut Vyapar Nigam (NVVN) (India)
    • Nepal Electricity Authority (NEA) (Nepal)
    • Bangladesh Power Development Board (BPDB) (Bangladesh).
  • Power Export: Nepal has started exporting 40 MW of electricity, which marks a significant milestone in trilateral power cooperation.

Key Entities Involved:

• NTPC Vidyut Vyapar Nigam (NVVN):
  • A wholly owned subsidiary of NTPC Ltd. (National Thermal Power Corporation), created to facilitate power trading.
  • NVVN is diversifying into renewables, e-mobility, and green fuel solutions.
• NTPC Ltd.:
  • A Maharatna PSU under India’s Ministry of Power, established to develop power resources in India.
  • Involved in large-scale power generation and clean energy initiatives