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A country with hugely surplus installed capacity but compelled to import power to meet summer demand for insufficient generation, Bangladesh now opts for exporting electricity to Nepal in low-demand winter.
The advance planning on power usage in the cold weather -- when requirements fall under falling temperatures -- comes from a meeting under the auspices of finance ministry that foots the bill for unused capacity of private power producers as per power-purchase deals with the entrepreneurs.
The Himalayan nation faces dearth of power in the winter to keep warm under subzero temperatures. In summer, Bangladesh will import surplus power of Nepal.
A cabinet committee formed to provide advice for quick implementation of initiatives taken for importing power from neighbouring countries made the decision in a meeting Sunday, with Finance Minister AHM Mustafa Kamal in the chair.
The committee is also tasked to decide on joint venture in power-sector development, and regional investment in power generation.
Held in the conference room of the ministry of finance, the meeting decided that export and import of electricity to and from the neighbouring nations will be held under government-to-government arrangement.
Mr Kamal asked the power division to preparer a draft-deal document to this end, said an official who attended the meeting. After scrutinising the draft the cabinet committee will give approval.
However, the meeting, also attended by state minister for power Nasrul Hamid and power-division secretary Habibur Rahman, among others, could not decide on tariffs for power-transmission line to be used in India and Nepal for importing and exporting electricity.
"It is not certain when 40 megawatts of electricity from Nepal will start flowing in to Bangladesh. Also, there is a proposal for importing 500 megawatts of electricity from there," says one official.
Bangladesh, India, and Nepal will have to sign a trilateral deal to start transmitting electricity to and from Nepal. Moreover, a deal has to be signed between the power development boards of Bangladesh and Nepal in this regard.
Presently, some 1,160 megawatts of electricity comes to Bangladesh from India's national grid and also 1,496MW electricity is supplied from Adani Group's coal power plant in Godda.
According to available statistics the country has now an aggregate 24,911MW installed capacity, but the generation hovers around half the figure. The idle capacity involves 'capacity payment' worth large sums.