Nepal-Bangladesh Power Cooperation via India: A Milestone in Regional Energy Integration

Nepal has recently started exporting 40 MW of hydropower to Bangladesh through India’s electrical connection-making it the first regional cooperation in South Asia that includes two distinct nations. This trilateral deal is highly comparable and can be above the export of importing, cooperation, agreement demonstrate a fresh approach in food and energy security in south Asian region and promoting sustainable utilization of energy resources.

The power transfer from NEA goes through the purchase agreement signed on October 15, 2023 by NEA, Bangladesh Power Development Board (BPDB) and the Indian NTPC Vidyut Vyapar Nigam, a subsidiary of the National Thermal Power Corporation of India. Such a structure helps Nepal to transport electricity to Bangladesh using India’s huge electricity network which can be described as an energy transit and facilitation country.

Bangladesh, where the authority is struggling to supply electricity to consumers, reaps the most out of this scheme. The extra 40MW can be used to mitigate energy deficit and to meet the increasing electricity demand for industries and residences. In the case of Nepal, the agreement translates into turning its enormous potentials of hydroelectric resources into regular source of income besides, cementing its role as a renewable energy supplier.

The power exchange occurring within the Eurasian space has been supported in part by India, which by necessity highlights the country’s key priorities of regional integration and energy diplomacy. India is strengthening its strategic relation with Nepal and Bangladesh by facilitating a transit route and infrastructure support while promoting clean energy or cooperation at the regional level.

Further, this development is in sync with other global objectives such as move towards use of renewable energy and controlling on carbon emissions. It also points to the possibility of the nation’s of South Asians coming together on common issues of energy which is creating way for similar treatment in future.

In this regard, this has been a good learning for the UPSC aspirants being a case study of energy security, renewable energy policies, and regional cooperation. It is therefore important to gain insight into the strategic, economic and especially the environmental aspects of such agreements so as to adequately assess India’s contributions toward the development of the region as well as the world energy challenges.