Nepal’s hydropower potential and the increasing energy needs of Bangladesh provide ample opportunities to enhance energy cooperation between the countries.

Nepal and Bangladesh signed a Memorandum of Understanding (MoU) on Cooperation in the Field of Power Sector between Nepal and Bangladesh on 10 August 2018 as per which Joint Standing Committee (JSC) and Joint Working Group (JWG) have been formed. The fourth meetings of JSC and JWG were held on 24-25 August 2022 in Kathmandu.

Besides, Nepal and Bangladesh are also signatories of the SAARC Framework Agreement for Energy Cooperation. In the Fourth BIMSTEC Summit held on 30-31 August 2018 in Kathmandu, Member States, including Nepal and Bangladesh, agreed to further intensify cooperation in energy sector, including energy trade.