Mr. Shakti Bahadur Basnet, Nepal Minister for Energy, inaugurated the Kushma-Butwal power transmission line along the Kaligandaki corridor. The 90-kilometer, 220-kilovolt transmission line is expected to facilitate stable power supply for the districts of Nawalparasi and Rupandehi in Nepal. It was funded by an investment from the Government of Nepal, the Nepal Electric Authority, and the Asian Development Bank through the South Asia Subregional Economic Cooperation program.

From mid-July to mid-October 2023, Nepal’s electricity export to India reached NPR9.64 billion (approximately $72.2 million). Electricity export has helped reduce Nepal’s trade deficit with India and increased the country’s foreign exchange reserves, according to the Nepal Electricity Authority.

Construction of transmission lines along the Kali Gandaki Corridor was successfully completed. The 220-kV double circuit transmission line is expected to contribute to improving Nepal’s national electricity grid system. The project was financed by the Asian Development Bank, under the SASEC Power System Expansion Project.  

India has allowed Nepal to sell electricity in its real-time energy market. According to the Nepal Electricity Authority (NEA), the Central Electricity Authority of India has allowed the trading of 44 MW of electricity generated from the 19.4 MW Lower Modi and 24.25 MW Kabeli B-1 hydropower projects in the real-time market.

The long-term electricity trade agreement between the Governments of India and Nepal has formally received approval from the Council of Ministers of India. This paves the way for Nepal to export up to 10,000 megawatts of electricity to Nepal over a period of 10 years.

The Governments of Bangladesh, India, and Nepal have agreed in principle to allow the supply of electricity to Bangladesh from Nepal via India’s transmission line. A formal agreement among the three nations will be signed soon, according to Nepal Electricity Authority (NEA) officials.

The fourth meeting of experts from India and Nepal on the Pancheshwar Multipurpose Project have agreed to move forward and finalize the Detailed Project Report (DPR) of the 6,480 MW project in Nepal. The project is part of the Mahakali treaty signed by the two countries in February 1996. The project aims to generate power, provide irrigation, and mitigate flooding.

The Governments of Bangladesh and Nepal have agreed to sign a long-term power sale agreement that will run for 25 years, according to Mr. Kul Man Ghising, Managing Director of the Nepal Electricity Authority. The Bangladesh Power Development Board (BPDB), NTPC Vidyut Vyapar Nigam Limited of India, and the Nepal Electricity Authority (NEA), are set to sign a tripartite agreement allowing the export of power from Nepal to Bangladesh using Indian territory.

The trilateral power deal being discussed among the Governments of Bangladesh, India, and Nepal is expected to be signed soon. The three-way agreement among the Bangladesh Power Development Board (BPDB), the NTPC Vidyut Vyapar Nigam Limited (NVVN) of India, and the Nepal Electricity Authority (NEA), aims to enable Nepal to export an initial capacity of around 40 megawatts of power to Bangladesh via India.

The fifth Bangladesh-Nepal joint steering committee (JSC) meeting on energy cooperation discussed greater bilateral cooperation in the power sector. Both countries agreed to undertake efforts to sign a tripartite agreement with India that would enable Nepal to export 40 MW of power to Bangladesh as early as the upcoming wet season (June-November) using the existing transmission infrastructure of the three countries.

The SASEC Highway Improvement Project was recognized for excellence in project management, gender and social inclusion, and environmental and social safeguards monitoring alongside other ADB projects by the Government of Nepal. Also awarded were Urban Water Supply and Sanitation Project, Bagmati River Basin Improvement Project-Additional Financing, Rural Enterprise Financing Project, and Power Transmission and Distribution Efficiency Enhancement.

The Governments of India and Nepal held the 14th meeting of the bilateral Power Exchange Committee on 17 March 2023. The meeting agreed to enable Nepal to export power to multiple Indian states through the transmission infrastructure in Bihar (India). A modality will be formulated in this regard.

The Governments of India and Nepal held the 10th joint steering committee meeting of Nepal-India Energy Secretary-level. Discussions were held on important issues including expanding existing, under-construction, and proposed transmission lines. India has also responded positively to Nepal's request to allow export of 50 MW of electricity to Bangladesh via India as per export-import guidelines if a specific proposal is submitted.

A bilateral meeting on electricity cooperation was held between Bangladesh and India. The meeting discussed the continued growth of Bangladesh's power sector and increasing demand for electricity in the country. Mr. Nasrul Hamid, State Minister for Power, Energy and Mineral Resources of the Government of Bangladesh, sought Indian cooperation to allow Bangladesh to import hydropower from Bhutan and Nepal.

The Nepal Electricity Authority (NEA) plans to further expand and strengthen the country's transmission and distribution system to make the country's electricity supply smooth and reliable, increase domestic consumption, and promote the export of surplus power to Bangladesh and India.

India’s Central Electricity Authority granted the Nepal Electricity Authority (NEA) approval to export an additional 22 megawatts of power produced by the Chilime Hydropower Company. Mr. Suresh Bahadur Bhattarai, Spokesperson of NEA, confirmed the approval obtained on 31 October 2022.

Mr. Ghanshyam Bhandari, Ambassador of the Government of Nepal to the Government of Bangladesh, noted when he met Bangladesh Prime Minister Sheikh Hasina that Nepal will initially supply 40-50 megawatts (MW) of electricity to Bangladesh. Nepal will increase the supply further upon completion of the 900 MW Upper Karnali hydropower project.

The 9th meeting of the Joint Committee on Water Resources between the Governments of India and Nepal have agreed to move forward with the Sapta Kosi high dam project by conducting further studies. The joint team of experts is expected to convene soon.

National Hydroelectric Power Corporation Limited (NHPC) and the PTC India Limited (formerly Power Trading Corporation of India Limited) signed a Memorandum of Understanding for the sale of power to be generated from Nepal’s West Seti and Seti River-6 Projects in Nepal.

Officials of the Governments of Bangladesh and Nepal attended a luncheon hosted by Mr. Md Shahriar Alam, State Minister for Foreign Affairs of the Government of Bangladesh. The event emphasized increasing collaboration between Bangladesh and Nepal in sectors such as hydropower, tourism, connectivity, trade, and people-to-people linkages.

Bangladesh aims to invest in Nepal’s Sunkoshi III hydropower project, according to Bangladesh's Ambassador to Nepal, Mr. Salahuddin Noman Chowdhury. The planned project will have a capacity of 683 megawatts and will be established in Lubughat, Khadadevi.

Regional forums such as South Asia Forum for Infrastructure Regulation, South Asian Association for Regional Cooperation, Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, and South Asia Subregional Economic Cooperation bring together stakeholders and more local or regional institutions are needed to gain optimal benefit from regional cooperation. This commentary appears on the Dhaka Tribune.

Nepal now sells a total of 364 megawatts (MW) of electricity to India through the Indian Energy Exchange Limited (IEX). Nepal started exporting an additional 144 MW of electricity to India generated by the Kaligandaki hydropower plant on 5 June 2022.

The Embassy of Sri Lanka in Nepal and the Export Development Board (EDB) of Sri Lanka jointly organized a webinar among the Nepal Ministry of Energy, Water Resources and Irrigation (MOEWRI) and Nepal Electricity Authority (NEA), and around 30 hydropower companies from Sri Lanka.

The Nepal Electricity Authority (NEA) is preparing a proposal to construct a 400-kilovolt transmission line along the Postal Highway. The proposed transmission line could be an alternative to the 400kV transmission line being built along the East-West Highway.

Construction of the Mainahiya (Rupandehi, Nepal)–Sampatiya (Uttar Pradesh, India) 132 kiloVolt transmission line has achieved 60% progress, noted the Nepal Electricity Authority (NEA). This transmission line is important to facilitate electricity trade between India and Nepal.

The Governments of India and Nepal held the 9th Joint Working Group and Joint Steering Committee meetings on bilateral power sector cooperation. The meeting discussions focused on joint development of power generation projects in Nepal; joint development of cross-border power transmission infrastructure; power trade; and capacity building assistance.

The Asian Development Bank (ADB) is supporting the Electricity Grid Modernization Project through an additional $60 million loan to upgrade power transmission and distribution systems in Nepal. The project will help Nepal reach its electricity consumption target of 700 kilowatt hours per capita by 2026, according to Mr. Jiwan Acharya, Principal Energy Specialist for South Asia, ADB.

A 132-kilovolt (kV) Samundratar-Trishuli transmission line and a 132/33-kV Samundratar substation under the South Asia Subregional Economic Cooperation program were inaugurated by Nepal Prime Minister KP Sharma Oli. The 25.74-kilometer transmission line will be able to transmit up to 270 megawatts of electricity.

Bangladesh will import around 700 megawatts of hydropower from Nepal to meet its future electricity demand. The country is set to sign an agreement with Nepal for the hydropower import.

The small hydropower plant at Chandannath Municipality in Nepal's Jumla District was rehabilitated with financial assistance from the Government of India. The plant was virtually inaugurated by the Embassy of India in Kathmandu, Nepal, the District Coordination Committee of Jumla, and the Nepal Electricity Authority (NEA) on 5 May.

The Nepal Electricity Authority (NEA) awarded GE Renewable Energy's Grid Solutions business the contract to upgrade three gas insulated substations (GIS) from 220 kilovolt (KV) to 400 KV. These are critical components of the Nepal SASEC Power Transmission and Distribution Project.

The Governments of Bangladesh and Nepal signed a Memorandum of Understanding (MoU) on Strengthening Sanitary and Phytosanitary (SPS) Cooperation on 22 March 2021. SPS, as well as technical barriers to trade (TBT), serves as critical nontariff measures that constrain trade in the SASEC subregion.

South Asia needs an integrated energy grid to reduce transmission cost and promote regional economic development, said Mr. Harsh Vardhan Shringla, Foreign Secretary of the Government of India. The subregion should bring together buyers and sellers and harmonize regulatory frameworks to harness the potential of the power trade, he added.

The Dhakelbar substation came online on 1 February 2021. The 400-kilovolt substation enables the state-owned Nepal Electricity Authority to exchange 1,000 to 1,200 megawatts of electricity with India via the Dhalkebar-Muzaffarpur cross-border transmission line. Nepal Prime Minister K.P. Sharma Oli said the infrastructure will serve as the main gateway to import and export electricity to India.

The Government of Nepal and the Asian Development Bank (ADB) have signed a loan agreement for a project that will modernize the country’s electric grid on 30 December 2020. The Electricity Grid Modernization Project, a $156 million concessional loan from ADB, will increase the capacity and reach of Nepal’s power distribution networks to meet current and future demands, improve reliability and quality of supply, and reduce losses.

The governments of India and Nepal held the eighth meeting of the Joint Steering Committee (JSC) on Cooperation in the Power sector on 10 December 2020 virtually. The meeting generated positive and wide-ranging discussions that are expected to further boost the expansion of power sector cooperation between India and Nepal.

The Asian Development Bank (ADB) has approved a $156 million concessional loan to modernize power transmission and distribution systems in Nepal. The Electricity Grid Modernization Project will increase the capacity and reach of power distribution networks, improve reliability of supply, and reduce losses.

India's northeastern states are working to improve infrastructure and connectivity to help reduce the cost of transport and basic commodities. India's northeastern region is the country's gateway to East and Southeast Asia, and India is promoting transport and energy connectivity with Bangladesh, Bhutan, Myanmar, and Nepal, explains Mr. Harsh Vardhan Shringla, Foreign Secretary of the Government of India.

The Government of Nepal and the Asian Development Bank signed a loan and grant agreement that would help improve power supply and distribution systems in Nepal. The project aligns with the South Asia Subregional Economic Cooperation program on intraregional power trade.

The Governments of India and Nepal held the Eighth Meeting of the Nepal-India Oversight Mechanism on 17 August 2020. The virtual meeting conducted a comprehensive review of the projects being implemented under bilateral cooperation.

India and Nepal can enjoy considerable benefits from cross-border energy trade. This commentary discusses how developing a robust power trading ecosystem can have far-reaching environmental, institutional, and social benefits in India and Nepal.

The Government of Nepal gave the Nepal Electricity Authority (NEA) approval to sell electricity to Bangladesh and India. Approval of Nepal Cabinet allows NEA to fix the price on the basis of competition, according to a report on the Himalayan Times. NEA can engage in electricity trade when domestic production is high and/or when production is low.

A new Asian Development Bank project will help improve power supply and distribution systems in Nepal through a concessional loan worth $200 million. The project aligns with the South Asia Subregional Economic Cooperation program on intraregional power trade through cross-border power exchange.

Mr. Barsha Man Pun, Nepal Minister for Energy, Water Resources, and Irrigation, urged Mr. Sanjiv Nandan Sahai, India Power Secretary, to accelerate power trade between India and Nepal. The Central Electricity Authority of India (CEA) and the Nepal Electricity Authority has an existing power trade agreement. A go ahead from the Power Ministry of India will allow the CEA to carry out measures necessary to accelerate power trade with Nepal.

Policymakers and experts have begun discussions on the creation of a regional power grid for Bay of Bengal Initiative for Multi-Sectoral Technical Economic Cooperation (BIMSTEC) member countries.

Bangladesh is in talks with Bhutan, India, Myanmar, and Nepal to import electricity to meet Bangladesh’s growing energy demand. This was according to Bangladesh Prime Minister Sheikh Hasina, who was speaking via videoconferencing at the inauguration of four power plants and eight substations in the country.

The 69 kilometer Motihari (India)-Amlekhgunj (Nepal) pipeline, signed by India and Nepal in 2015, was jointly inaugurated by India Prime Minister Narendra Modi and Nepal Prime Minister KP Sharma Oli on 10 September 2019. The project is South Asia's first cross-border pipeline for petroleum products.

Nepal will welcome private and public sector investments from Bangladesh, said Energy, Water Resources and Irrigation Secretary, Nepal, Mr. Dinesh Kumar Ghimire. He said Nepal and Bangladesh are looking to boost trade and business with each other and should explore new areas of cooperation.

India said it would support Nepal’s energy sector as Nepal seeks to export energy to third countries, such as Bangladesh and Myanmar. The move will provide power producers in Nepal access to international markets for energy export.

Nepal and Bangladesh have agreed to build cross-border transmission lines between the two countries, to supply electricity generated in Nepal to Bangladesh.

The Simrutu River Small Hydropower Project, a micro-hydropower plant developed under the SASEC Program, is nearing completion in Rukum District, Nepal. The power plant will produce 200 kilowatts of electricity for rural communities and will be the largest hydropower project in the district once completed. The project is partially financed by the Asian Development Bank.

Mr. Dharmendra Pradhan, Minister for Petroleum and Natural Gas, Government of India, and Mr. Matrika Prasad Yadav, Minister for Industry, Commerce and Supply, Government of Nepal, held a bilateral meeting to discuss strengthening of energy and economic ties between the two countries. Both ministers agreed to explore potential pipelines for LPG and LNG to supply fertilizer plants and industries in Nepal.

Bangladesh Prime Minister Sheikh Hasina and Nepal Prime Minister KP Sharma Oli agreed to take Bangladesh-Nepal cooperation in the energy sector to the next level. Mr. Ihsanul Karim, Bangladesh Press Secretary, reported that the two Prime Ministers discussed enhancing cooperation in the power sector, and agreed on the need to sign a memorandum of understanding to enable power trade.

India’s GMR Upper Karnali Hydropower Ltd. is set to sign a power purchase agreement with the Bangladesh government to export electricity to be generated by the Upper Karnali Hydropower Project in Nepal. The agreement will serve as a guiding framework for Nepal for exporting surplus electricity to Bangladesh.

As Bangladesh's economy expands, its demand for energy also increases. The Bangladesh National Conservation Strategy projects that by 2030, the country's electricity demand will reach around 34,000 megawatts. In this commentary, Mr. Promod Rijal, senior economist at the Institute for Integrated Development Studies in Nepal, explains how transboundary energy trade between Bangladesh and Nepal through India will help Bangladesh meet its energy needs.

Eminent Persons Group including representatives from both India and Nepal exchanged the first draft reports on future India-Nepal relations during their seventh meeting in Kathmandu on 24 February 2018. It is likely that they will produce one joint final report during the next meeting in New Delhi that will be submitted to both governments before the group’s term expires in July.

Bangladesh's interest to harness Nepal's hydropower potential could be a win-win for both countries, with India playing the role of catalyst, shared Mr. Mostofa Sohrab Chowdhury, President, Rangpur Chamber of Commerce and Industry. Bangladesh's projected additional energy demand is 21,000 megawatts (MW) by 2030, while Nepal's untapped economically feasible hydropower potential is 42,000 MW.

The power purchase agreement between the Nepal Electricity Authority and the NTPC Vidyut Vyapar Nigam of India was extended by three months, from 1 January to end of March 2018. This allows Nepal to import up to 160 megawatts of electricity through the Dhalkebar-Muzaffarpur cross-border transmission.

An ADB-funded project is upgrading power lines and substations in 49 locations in Nepal to enhance the country’s electricity distribution system. The $191 million SASEC Power System Expansion Project aims to increase the load-bearing capacity of transmission lines in Nepal.

Experts at the launching of UNCTAD’s The Least Developed Countries Report 2017 urged the Government of Bangladesh to strengthen the country’s electrical system and address electricity governance and finance to ensure affordable power supply to homes and businesses. Despite significant improvements over the past decade, challenges remain, according to the Report.

Nepal has decided to join the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) grid interconnection, a move meant to help facilitate trade in electricity and take full advantage of available energy sources. Nepal is expected to sign an MOU to join the grid interconnection at the Third BIMSTEC Energy Ministers' Meeting.

An Asian Development Bank report suggests that a shift in India’s electricity policy could help address the acute electricity shortages faced by SAARC countries, which affects socioeconomic development as well as business operations. Policy amendments could help facilitate cross-border power trade among SAARC countries and give communities better access to electricity.

The 13th Joint Steering Committee Meeting between Bangladesh and India, held on 27-28 September 2017 in New Delhi, India, reviewed Bangladesh-India power sector cooperation, and explored new areas and opportunities, including the possible 840 megawatt (MW) additional electricity import from India to Bangladesh, and planned Bangladesh hydropower imports from Nepal and Bhutan.

The 18th session of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Senior Officials' Meeting and the 15th BIMSTEC Ministerial Meeting stressed the importance of cooperation in energy, technology, trade, and transport, through a revitalized, more integrated, and stronger BIMSTEC process. The Joint Statement underscored the need to finalize the BIMSTEC Free Trade Area Agreement.

The Government of Bangladesh and India's GMR Upper Karnali Hydropower Ltd. are now preparing to sign a power purchase agreement. GMR will be exporting 300 to 500 megawatts (MW) of energy generated by the Upper Karnali Hydroelectric Project in Nepal via India.

Mr. Prabir De, Professor at the Research and Information System for Developing Countries, discusses how the Bangladesh-Bhutan-India-Nepal (BBIN) subregional grouping’s focus to bridge connectivity gaps is crucial to reducing poverty in the region. He highlights the pressing need to begin implementing comprehensive trade facilitation and connectivity measures in the BBIN subregion, and remarks how success of the BBIN initiative is important to move broader regional integration initiative

The International Trade Centre's Trade Map reports an increase in intraregional trade in the Bangladesh-Bhutan-India-Nepal (BBIN) subregion in 2016, from $21.65 billion in 2015 to $23.52 billion. The ratio of BBIN intraregional trade to world trade went up from 2.98% in 2015 to 3.34% in 2016.

The Asia Foundation, in collaboration with the Confederation of Indian Industry, is preparing a study on energy trade in the Bangladesh-Bhutan-India-Nepal subregion, examining how market forces, networks, and stakeholders interact. In this commentary, Mr. Aditya Valiathan Pillai, program officer of the Asia Foundation in India, discusses the creation of an energy market in South Asia and the growing importance of regional electricity trade in helping mitigate carbon emissions.

India's Ministry of Power is preparing a set of guidelines for cross-border trade of electricity, with draft regulations from the Central Electricity Regulatory Commission. This will regulate cross-border energy trade between India and Bangladesh, Bhutan, Myanmar, and Nepal, by creating a uniform framework.

Finance ministers and senior officials of member countries of the South Asian Association for Regional Cooperation (SAARC), including Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka met on 5 May at Yokohama, Japan, at the sidelines of the Asian Development Bank (ADB) 50th Annual General Meeting.

India's Union Cabinet, chaired by Prime Minister Narendra Modi, approved the ratification of the MOU for the Establishment of the BIMSTEC Grid Interconnection. The MOU is expected to be signed at the next BIMSTEC Energy Minsters' Meeting and provides a broad framework for energy trade among BIMSTEC member countries.

Bangladesh has the potential to become a transport hub for India, Bhutan, Nepal, Maldives, Sri Lanka, and Myamar, according to Mr. AMA Muhith, Finance Minister, Bangladesh. Turning Bangladesh into a regional and transshipment hub would enhance economic cooperation and result in collective economic growth for the countries, Mr. Muhith said at the SASEC Finance Ministers’ Meeting in New Delhi, India.

ADB has allocated $843.8 million for Nepal for 2017-2019. An additional $356 million can be made available over the period for projects contributing to regional cooperation and integration and reduction of disaster risks, provided that Nepal continues to improve performance of its ongoing projects, according to Mr. Wencai Zhang, Vice President, ADB. 

The Asian Development Bank (ADB) is ready to assist Bangladesh in its efforts to improve transport and energy connectivity. Mr. Wencai Zhang, Vice President, ADB, affirmed that ADB will continue to support Bangladesh in its goal of becoming a developed country by 2041, as well as in achieving the Sustainable Development Goals and minimizing climate change impact.

The Governments of India and Nepal discussed how to bring transmission line projects—the Dhalkebar (Nepal)-Muzaffarpur (India) transmission line, Raxaul (India)-Parwanipur (Nepal) transmission line, and Kataiya (India)-Kushaha (Nepal) transmission line—into operation. They agreed to increase the Dhalkebar-Muzaffarpur transmission line to 220 kVa capacity in May 2017, and begin electricity import through the Raxaul-Parwanipur and Kataiya-Kushaha transmission line.

Hydropower cooperation among Bangladesh, Bhutan, India, and Nepal could be a viable option for addressing growing power needs in the region, said Mr. Ainun Nishat, Professor Emeritus, Centre for Climate Change and Environmental Research, Brac University, Bangladesh. Nepal’s hydropower potential stands at 83,000 megawatts (MW), while Bhutan’s is at 40,000 MW and northeast India’s at 60,000 MW.

The second meeting of the Nepal-India Oversight Mechanism, held on 30 January 2017 in Kathmandu, Nepal, reviewed progress of India-funded economic and development projects in Nepal, and agreed to expedite implementation of these projects for timely completion. Projects discussed included cross-border railways, integrated check posts, and cross-border transmission lines.

The Integrated Research and Action for Development initiative has launched the analytical study “Economic Benefits from Nepal-India Electricity Trade,” confirming that a large economically feasible electricity export potential exists. Electricity trade can help boost Nepal's economy and improve the well-being of its people, and offers India an affordable and convenient renewable resource to meet demand.

Nepal has upgraded the Thame Khola Small Hydropower Plant in Namche VDC, Solukhumbu District, raising the plant’s capacity from 630 kilowatts (kW) to 930 kW. India provided assistance of $54,500 for the upgrade. The facility supplies power to the upper Khumbu valley, including 18 villages of Khumjung and Namche VDC.

Least Developed Countries (LDCs) comprise around 880 million people yet account for less than 2% of the world gross domestic product. South Asian countries can accelerate economic development and graduate from the LDC category by working with each other. The economic future of their people could change radically through collaboration between the countries and lift millions of people out of poverty.

Nepal’s hydropower potential could be realized with an efficient technological base, entrepreneurial vision, a coordinated power trading approach, and sustained investment commitment. Hydropower development would bring economic, social, and environmental benefits in Nepal and the rest of the South Asian region. In this speech delivered at the Power Summit, Nepal Prime Minister Pushpa Kamal Dahal vowed to support domestic and foreign investors through a policy encouraging investment.

The Asian Development Bank (ADB) has approved an additional $20 million for the SASEC Power System Expansion Project in Nepal, to be provided by the ADB Strategic Climate Fund. This additional financing will support installation of utility-scale solar photovoltaic systems by 2018. The Government of Nepal is also providing complementary funding of $24.5 million.

The SASEC project portfolio has surpassed the $9 billion mark with the December 2016 approval of Nepal’s SASEC Roads Improvement Project, worth $256.5 million. There are now 44 SASEC investment projects worth a cumulative $9.13 billion. During 2016, seven projects have been approved for a total of $2.37 billion.

The SASEC Operational Plan, which aligns and brings together all SASEC sectoral strategies, was launched in Kathmandu, Nepal. With 37 of the 200 planned projects set to be implemented in Nepal, the Government’s policy reform efforts to integrate with global markets is set to receive a significant boost.

A high-level panel formed by the Governments of India and Nepal will work to address bottlenecks in infrastructure projects in Nepal funded by the Government of India—including hydropower projects, roads and railways—to ensure their timely completion.

South Asian countries should engage more in regional energy trade and joint management of resources. By doing so, they could save over $9 billion annually and reduce carbon emissions by 8%. And since energy drives development, energy cooperation and trade is expected to translate to improved standards of living and poverty reduction.

The Governments of Bangladesh and Nepal have agreed to undertake joint investments in hydropower plants in Nepal, to generate electricity, including energy exports to Bangladesh. The two countries signed a deal to set up two hydropower plants capable of generating 1,500 megawatts.

A 'Foreign Direct Investment (FDI) in Hydropower' forum in Kathmandu, Nepal stressed the need for more FDI in hydropower projects. According to Nepal Minister for Energy Janardan Sharma, Nepal needs more investment to be able to fully harness its hydropower capacity. The Power Trade Agreement signed by Nepal and India promises a huge market for Nepal's hydroelectricity.

Finance Ministers from the eight South Asian Association for Regional Cooperation (SAARC) member states are pushing for the formation of a South Asian Economic Union (SAEU) to ensure larger inflow of investments, higher trade volumes, and energy generation. The ministers highlighted the need to fast-track the formation of the SAEU to help boost the inflow of investments and trade volumes.

The Parliament of Nepal has endorsed the South Asian Association for Regional Cooperation (SAARC) Framework Agreement for Energy Cooperation, enabling the 8 SAARC member countries to conduct cross-border electricity trade. Under the Agreement, SAARC member states have agreed to provide non-discriminatory access to the regional transmission grids.

Preparations to sign a power trade agreement between the Governments of Nepal and Bangladesh are underway, with the Energy Ministry of Nepal finalizing a draft memorandum of understanding on Nepal-Bangladesh energy cooperation. The draft outlines protocols for conducting energy trade between the two countries, in line with the South Asian Association for Regional Cooperation Framework Agreement for Energy Cooperation.

South Asia Subregional Economic Cooperation (SASEC) investment projects increased to a cumulative $7.66 billion in the areas of transport, energy, trade facilitation, and ICT with the recent approval of India’s Bihar New Ganga Bridge Project. To date, 40 SASEC-supported projects are helping member countries strengthen regional connectivity infrastructure, promote economic growth, and foster regional cooperation. In addition, there are now 71 technical assistance projects worth $66.14 mi

The 24th meeting of the Investment Board Nepal (IBN) endorsed the "National Energy Demand and Supply Study," which was undertaken to address the issue of latent demand and come up with a more realistic demand forecast for energy. According to the study, Nepal's energy demand will reach around 10,000 megawatts by 2030. Electricity will also have a dominant share of energy in Nepali households.

Mr. Hun Kim, Director General, South Asia Department, ADB, describes how partnership of 6 South Asian countries through the ADB-supported South Asia Subregional Economic Cooperation (SASEC) Program is helping propel economic growth in South Asia, amidst an uncertain regional and global economic climate, by working to increase trade volumes to reduce the number of impoverished people in the region.

Greatly increased energy consumption is powering economic transformation in Asia and the Pacific, but also contributing to higher greenhouse gas emissions. The devastating effects of climate change are already being felt in the region. In this speech delivered at the Pacific Energy Summit on 24 June 2016 in Singapore, Bambang Susantono, Vice-President for Knowledge Management and Sustainable Development, Asian Development Bank, looks at the challenges faced by Asia’s growing economies a

The 2-day Nepal Power Investment Summit 2016 concluded with a declaration that Nepal needs $20 billion to develop 10,000 megawatts through on-grid hydropower projects in the next decade. It also noted investment needs of $5 billion for high-voltage transmission projects and other opportunities in the country's hydropower sector.

Nepal has forwarded a proposal to set up an India-Nepal energy bank that would help both countries address the problem of power shortage at a meeting of the India-Nepal Joint Standing Committee. The energy bank would enable Nepal to export electricity to India during summer and import electricity from India during winter.

The Nepal Electricity Authority (NEA) and the Asian Development Bank (ADB) will create a 'central-level safeguard unit' to focus on preparation of the ADB-supported SASEC Power System Expansion Project in Nepal. The unit will comprise a team of professionals and experts, who will coordinate project issues at the local level, including land acquisition, forest clearance, and right of way.

Mr. Wencai Zhang, Vice-President, Asian Development Bank, discussed ways to accelerate Nepal's economic structural transformation with policy makers, scholars, and Government officials in “Envisioning Nepal 2030”, an international seminar jointly organized by the National Planning Commission and ADB. In his address, he discussed how regional cooperation and integration could turn Nepal from a landlocked to a land-connected country.

The need to ramp up cooperation in energy between Bangladesh and Nepal was discussed by Bangladesh Minister for Information Hasanul Haq Inu at an interaction organized by the Nepal Reporters’ Club. According to the Minister, Bangladesh has already forwarded a proposal for transmission of energy from Nepal.

A 2-day meeting of the Joint Working Committee and Joint Steering Committee on India-Nepal Cooperation in the Power Sector discussed the implementation of the power trade agreement (PTA) signed in September 2014. The Meeting agreed that India will supply Nepal with 300 megawatt of electricity in the next 18 months, and reviewed plans for long-term energy trade, including the proposed 6 cross-border power corridors.

The third meeting of the Joint Working Group on Subregional Cooperation between Bangladesh, Bhutan, India and Nepal (BBIN) on Connectivity and Transit and Water Resources Management and Power/Hydropower deliberated new initiatives for deepening cooperation. Discussion centered around progress made under the BBIN Motor Vehicle Agreement and the proposed BBIN Rail Agreement.

The Power Grid Corporation of India began power transmission along its first "Power Transmission Express Highway". With a 6,000-megawatt capacity, this power corridor connects the northern states with the North Eastern Region, and will help both manage the supply of large-scale hydropower and connect power transactions done with Bhutan, Bangladesh, and Nepal.

Bhutan Prime Minister Tshering Tobgay promotedpartnerships as a way to help landlocked developing countries (LLDCs) become land-linked to global opportunities, saying it is possible to ensure a country is not landlocked economically with its neighbors' full trust and confidence. The Prime Minister was attending a high-level forum for landlocked developing countries on the sidelines of the UN General Assembly.

The Nepal Electricity Authority (NEA) is in talks with the Asian Development Bank (ADB) to install solar lights in remote districts where power distribution was severely damaged by the earthquake. Solar power can provide a temporary solution while NEA repairs its distribution channels.

The Nepal Electricity Authority plans to reduce current system loss to 10% by 2020 through several technical and non-technical measures, including unbundling of development and operation of electricity transmission lines. NEA's total energy generation loss in 2013-2014 stood at 25%. It is currently implementing the Energy Access and Efficiency Improvement Project under the SASEC program.

Asian Development Bank (ADB) President Takehiko Nakao called on Nepal Prime Minister Sushil Koirala on 3 February 2015 during a visit to Nepal, and met with Finance Minister Ram Sharan Mahat and National Planning Commission Vice Chairperson Govinda Pokharel. ADB plans to provide about $1 billion in concessional loans and about $13 million in technical assistance grants to Nepal over the next three years to support faster and more inclusive growth in the country.

A co-financing agreement for the South Asia Subregional Economic Cooperation (SASEC) Power System Expansion Project was signed by the Asian Development Bank (ADB) and the Norwegian Ministry of Foreign Affairs on 14 November 2014 in Kathmandu, Nepal. The project will improve access to energy in Nepal by increasing electricity access.

The Government of Nepal has allocated portions of the $1 billion line of credit from India to infrastructure projects boosting energy trade and transport connectivity between the two countries. The Budhigandaki Hydroelectric Project will receive around half of the credit; bridges enhancing connectivity of Nepal's western border with India are also planned.

Nepal and India have formally signed a historic Power Trade Agreement (PTA) which paves the way for free trade of power between the two neighboring countries. The signing took place at Nepal Prime Minister Sushil Koirala's office at Singha Durbar in Kathmandu, Nepal on 21 October 2014, with Nepal Energy Secretary Rajendra Kishore Kshatri and India Power Secretary Pradeep Kumar Sinha in attendance.

The Government of Nepal signed the Framework Agreement for Energy+ Cooperation with the Government of Norway, the Government of Denmark, the Asian Development Bank and United Nations Development Program to contribute toward the actual implementation of the Sustainable Energy for All Initiative (SE4ALL).

Following the meeting between Indian Prime Minister Narendra Modi and Nepal Prime Minister Sushil Koirala during Prime Minister Modi's state visit to Kathmandu in August, a project that has waited in the pipeline for 17 years saw new developments.

Nepal and India signed a landmark preliminary Power Trade Agreement (PTA) on 4 September 2014, around two weeks ahead of the deadline set by India Prime Minister Narendra Modi. This PTA paves the way for bilateral trade of electricity between the two countries, and is foreseen to boost their energy security, as well as bring in added revenues to Nepal's economy.

Asian Development Bank Vice President Mr. Wencai Zhang met with the Prime Minister of Nepal, Mr. Sushil Koirala on 17 August 2014, and assured him of ADB's commitment to help Nepal achieve its vision of graduating from least-developed country status by 2022.

After striking a similar deal in India, Nepal is set to sign a power trade agreement with Bangladesh. A Memorandum of Understanding is expected to be vetted by Nepal and presented during the power sector cooperation meeting in December, after the South Asia Association for Regional Cooperation summit. Hydropower produced in Nepal through power sector cooperation, would be exported to Bangladesh through India's power corridor.

Indian Prime Minister Narendra Modi made a two-day visit to Kathmandu, Nepal on 3-4 August 2014, the first bilateral visit by an Indian Prime Minister in 17 years. At a speech delivered to the Parliament of Nepal, Modi announced India’s desire to help Nepal and offered an additional soft loan of US $1 billion for energy projects and infrastructure development.

The Asian Development Bank (ADB) approved a loan of $180 million to Nepal for the South Asia Subregional Economic Cooperation (SASEC) Power System Expansion Project to help Nepal address its urgent power needs. Two government agencies of Nepal are involved in the project – Nepal Electricity Authority to upgrade transmission and distribution lines, and the Alternative Energy Promotion Centre to provide electricity to remote rural areas.

Nepal’s Alternative Energy Promotion Centre has installed its first wind-solar hybrid system in Dhaubadi village of Nawalparasi district, with Asian Development Bank support. The clean energy approach of this successful pilot project, already providing energy services to 46 rural households, can be replicated under a proposed SASEC power system expansion project.