Daily Current Affairs : 18-November-2024
In a major development for regional energy cooperation, Nepal has started exporting electricity to Bangladesh using India’s electricity grid. This marks a significant step towards addressing energy shortages in Bangladesh and strengthening ties between the three countries. The power transfer, which began in 2023, is a result of a tripartite agreement that involves three key players: the National Thermal Power Corporation (NTPC) Vidyut Vyapar Nigam (NVVN), Nepal Electricity Authority (NEA), and Bangladesh Power Development Board (BPDB).
Tri-Nation Agreement: A New Milestone
The electricity export from Nepal to Bangladesh is a product of a power sales agreement signed in October 2023. This agreement, which is a collaborative effort between India, Nepal, and Bangladesh, allows Nepal to supply 40 MW of hydroelectric power to Bangladesh through India’s electricity grid. The deal reflects a growing trend of regional energy cooperation, benefiting all three nations. The power trade is a key step in addressing the energy demands in Bangladesh, which has been grappling with a serious electricity crisis.
Bangladesh’s Electricity Crisis
Bangladesh has been facing a significant electricity shortage, largely due to growing demand and limited domestic power generation. The export of 40 MW of electricity from Nepal is expected to help ease this crisis. Nepal, with its abundant hydropower resources, is now in a position to support its neighbors in meeting their energy needs. By utilizing India’s grid infrastructure, the power exchange becomes a practical solution to both regional energy challenges and the growing interdependence of neighboring countries.
Role of NTPC Vidyut Vyapar Nigam (NVVN)
NTPC Vidyut Vyapar Nigam (NVVN) plays a key role in this agreement. NVVN, a subsidiary of the state-owned NTPC Ltd, was established in 2002 to focus on India’s power trading. It holds the highest Category ‘I’ power trading license under the Central Electricity Regulatory Commission (CERC) regulations. Apart from electricity trading, NVVN is expanding its operations into renewable energy, e-mobility, waste-to-green fuel conversion, and other energy solutions.
NTPC: Powering India’s Energy Growth
NTPC Ltd, established in 1975, is one of India’s largest and most important energy companies. It is a Central Public Sector Undertaking (PSU) under the Ministry of Power, and it became a “Maharatna” company in 2010. Headquartered in New Delhi, NTPC is at the forefront of India’s power sector, driving growth and helping meet the country’s energy demands.
Important Points:
- Nepal Begins Exporting Electricity to Bangladesh: Nepal has started exporting 40 MW of hydroelectric power to Bangladesh through India’s electricity grid.
- Tri-Nation Agreement: The power transfer is based on a tripartite agreement signed in October 2023 between:
- National Thermal Power Corporation Vidyut Vyapar Nigam (NVVN)
- Nepal Electricity Authority (NEA)
- Bangladesh Power Development Board (BPDB)
- Addressing Bangladesh’s Electricity Crisis: Bangladesh is facing an electricity shortage, and this power export aims to alleviate some of those challenges.
- NTPC Vidyut Vyapar Nigam (NVVN):
- NVVN is a subsidiary of NTPC Ltd, established in 2002 to promote power trading in India.
- It holds the highest Category ‘I’ power trading license under Central Electricity Regulatory Commission (CERC).
- NVVN is diversifying into renewables, e-mobility, waste-to-green fuel conversion, and other energy solutions.
- NTPC Ltd:
- NTPC, founded in 1975, is a major state-owned power company in India.
- It was granted “Maharatna” status in 2010.
- NTPC is one of India’s largest power developers, headquartered in New Delhi.
- Regional Energy Cooperation: The electricity export marks an important step in strengthening energy ties between India, Nepal, and Bangladesh, showcasing the growing collaboration in the region.
- Practical Solution to Regional Energy Demands: The use of India’s grid for power transfer offers a feasible solution to energy shortages in neighboring countries like Bangladesh.
Why In News
Nepal started exporting electricity to Bangladesh using India’s electricity grid, marking a significant milestone in regional energy cooperation and highlighting the growing collaboration between South Asian countries to address shared energy challenges.
MCQs about Nepal Begins Exporting Electricity to Bangladesh
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What is the primary purpose of Nepal’s electricity export to Bangladesh?
A. To boost Nepal’s economy
B. To help Bangladesh address its electricity shortage
C. To promote India’s electricity grid
D. To reduce energy prices in Bangladesh
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Which organizations are involved in the tripartite power sales agreement for the electricity transfer?
A. Nepal Electricity Authority (NEA), Bangladesh Power Development Board (BPDB), and NTPC Vidyut Vyapar Nigam (NVVN)
B. Nepal Power Corporation (NPC), Bangladesh Energy Development Board (BEDB), and NTPC Ltd
C. India Power Trading Corporation (IPTC), NEA, and BPDB
D. Nepal Hydro Power Authority (NHPA), NTPC Ltd, and BPDB
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What is the role of NTPC Vidyut Vyapar Nigam (NVVN)?
A. To build hydroelectric power plants
B. To trade power in India and neighboring countries
C. To manage Nepal’s electricity exports
D. To distribute power in Bangladesh
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When did NTPC Ltd achieve the “Maharatna” status?
A. 2000
B. 2010
C. 2015
D. 2020
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