The Government of Nepal has reached a multi-party agreement with neighbouring countries to facilitate the supply of electricity from Nepal to Bangladesh. According to government officials, Nepal has defined the deal as 'a preliminary agreement' among Nepal, India and Bangladesh. The Ministry of Energy, Water Resources and Irrigation said that Bangladesh is set to purchase 40 megawatts of electricity from Nepal in the initial phase.

According to the stakeholders, while 40MW is not a substantial volume, the decision is significant because of its symbolic value. The agreement to export Nepal's electricity to a third country is itself a significant achievement, according to the stakeholders.

President of the Independent Power Producers' Association, Nepal (IPPAN) Ganesh Karki is among those assessing the agreement as a noteworthy achievement. The transmission of Nepal's power to Bangladesh will be facilitated through India's NTPC Vidyut Vyapar Nigam (NVVN), which has been designated as the nodal agency by the Indian government.

Nepal Electricity Authority's Prabal Adhikari confirmed that the preliminary agreement on the power supply to Bangladesh has been reached by the email exchanges among the three countries. Some pending issues regarding the agreement are expected to be finalized shortly, he said. It has been agreed to sign the document in the physical presence of the officials from the respective countries soon. It is expected to take place in the near future.

Bangladesh, in its strategic plan, aims to purchase 9,000 MW of electricity from Nepal by 2040. Bangladesh which is in the pursuit of clean energy, has expressed its interest in investing in some important projects in Nepal as well. It is noted that the fifth meeting of the Nepal-Bangladesh energy secretary-level joint steering committee held in Bangladesh on May 16 decided to establish power trade relations between the two countries. The meeting also agreed to proceed ahead for the execution of the agreement among the NEA, NVVN of India and the Bangladesh Power Development Board.