Bangladesh-Nepal power trade may not happen soon

The prospect of a 50 MW electricity transfer from Nepal to Bangladesh through India may defer after it has been informed that the Baharampur-Bheramara cross-border power transmission is not immediately possible, reports The Annapurna Express.

Government officials and private sector representatives, who interacted with Indian officials during a conference on grid connectivity in the BIMSTEC (Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation) in New Delhi last week (16 December), said Indian officials notified the Nepali delegation that currently it is not possible to export electricity through the Baharampur-Bheramara transmission line. 

"In the conference, we were informed that there is a transmission constraint. It was told by the Indian authorities that the Baharampur-Bheramara transmission line does not have spare capacity, so, the proposal of exporting 50 MW of electricity from Nepal to Bangladesh is on hold," said Asish Garg, vice president of the Independent Power Producers' Association, Nepal (IPPAN).

A senior official of the Nepal Electricity Authority who participated in the meeting also confirmed it saying the power is being transmitted in the transmission line to its almost full capacity.

"An official of Power Grid Corporation of India told us that the Baharampur-Bheramara line is fully occupied with power and additional power cannot be transmitted through this power line," said a private sector representative who participated in the conference. "The statement of the Indian official clarifies that exporting power through this transmission line is immediately not possible."

However, NEA officials say Nepal could still sell power to Bangladesh through another arrangement in the future. India is developing this project to transmit power to the northeast region of India. Nepali officials however said that the 765kV line, if constructed, could also help Nepal to transmit its power to Bangladesh in the future.

Bangladesh has been keen on importing electricity from Nepal as well as developing hydropower projects in Nepal on a joint-venture model in recent years. 

In August this year, Nepal and Bangladesh decided to request India to allow the export of 40-50 MW of electricity from Nepal to Bangladesh in the initial phase by utilizing the Baharampur-Bheramara cross-border power transmission line.

As per the understanding reached on the secretary-level Joint Steering Committee (JSC) formed for energy cooperation between Nepal and Bangladesh, Nepal had notified India of the understanding it reached with Bangladesh in October.

Nepali officials were hopeful that energy export to Bangladesh would happen as there had been a request from the highest political level of Bangladesh to India. Bangladeshi Prime Minister Sheikh Hasina during her visit to India in September this year had requested her Indian counterpart Narendra Modi for a power transmission corridor to import electricity generated in Nepal.

Bangladesh is also negotiating with the Indian company GMR to conclude a power sales agreement to buy 500MW electricity that will be produced from the proposed 900MW Upper Karnali Hydropower Project. With Nepal's Supreme Court issuing an interim order not to implement the cabinet's decision of extending the deadline to GMR for its financial closure, it is not sure what happens with the planned power sales agreement.