Saturday, May 04, 2024
Following long-time planning, Bangladesh is finally on the verge of starting the process of importing 40 megawatts (MW) of hydroelectricity from Nepal, after facing prolonged delays primarily due to the wait to get India's full permission to use its grid.
With all preparations now complete, Bangladesh Power Development Board (BPDB) has confirmed that approval from India has been secured. A contract in this regard is expected to be finalised in the first phase this month.
If all goes according to plan, Nepal's hydroelectricity offered at a minimum price will be seamlessly integrated into Bangladesh's grid by the end of April, according to BPDB officials.
In addition to importing this initial 40MW hydroelectricity at a price of Tk 3-5 per unit, Bangladesh is also in the process of importing an additional 500MW of electricity from Nepal.
Discussions have also begun to import hydroelectricity from Bhutan, a development facilitated during the recent visit of Bhutanese King Jigme Khesar Namgyel Wangchuck to Dhaka.
The introduction of such low-cost electricity sources is anticipated to play a pivotal role in meeting Bangladesh's growing energy demands, officials said.
Ensuring all these, State Minister for Power, Energy and Mineral Resources Nasrul Hamid has said that alongside the 40MW, the process of importing an additional 500MW of hydroelectricity from Nepal is also underway.
The ministry will form a committee and it will work on how to increase cooperation in electricity and energy business between Nepal and BPDB. Though there are cheap and environmentally friendly alternatives, Bangladesh cannot produce hydroelectricity and that’s why the government has been working with Nepal and Bhutan to increase cooperation in this matter, said Nasrul.
According to Power Division sources, the unused capacity at the High Voltage Direct Current (HVC) substation, located on the border, will be leveraged to incorporate Nepal's hydroelectricity into the Indian grid.
Discussions on determining the pricing are nearing finalisation between Nepal Electricity Authority (NEA) and BPDB. Simultaneously, negotiations on trading mergers with Bhutan Power Corporation are ongoing. However, in compliance with India's Cross-Border Electricity Trading Guidelines, wheeling charges will be applied, sources said.
A Power Division official, requesting anonymity while talking to The Business Post, expressed optimism about the pending finalisation process, saying, "This matter was previously stalled due to the delay in India's approval. However, with the clearance obtained, Nepal's hydroelectricity is poised to be added to Bangladesh's grid in April."
To address the high costs of electricity generation, the government is actively exploring alternative sources. The Power Division is diligently adopting various techniques for electricity production from renewable sources within the country.
The collaboration with Nepal and Bhutan underscores Bangladesh's commitment to seeking sustainable energy solutions. Nepal has agreed to supply 500MW of electricity via India's inter-country grid line. Before this, it will supply 40MW of electricity.
A bilateral agreement between Indian Prime Minister Narendra Modi and Nepalese Prime Minister Pushpa Kamal signed during a meeting in New Delhi last year paved the way for supplying 40MW of electricity to Bangladesh through India's transmission line.
India's Foreign Secretary Vinay Kwatra hailed the agreement, saying it will boost sub-regional cooperation. He emphasised Nepal's eagerness to collaborate with Bangladesh not only in supplying hydroelectricity but also in attracting investments in Nepal's electricity sector by the Bangladeshi government or private entities.
The positive cooperation from India has been instrumental in enabling the import of hydroelectricity from Nepal.
Power Cell Director General Mohammad Hossain hoped that 40MW of electricity would be seamlessly integrated into Bangladesh's grid through India's transmission line this month.
This impending addition of hydroelectricity promises to revolutionise Bangladesh's energy sector. Despite the modest scale of the initial import, its significance lies in the substantially lower cost compared to conventional energy sources, he said.
While conventional electricity production methods incur costs of Tk 15 to 20 per unit, importing hydroelectricity offers a far more economical alternative, he added.
The government has said that Bangladesh's energy landscape is set to undergo a transformative shift banking on sustainable and cost-effective solutions. With collaborative efforts underway with neighbours Nepal and Bhutan, Bangladesh is forging a path towards a greener and more energy-efficient future.
