Kathmandu, Nov. 21 -- Last month saw the historic signing of the Nepal-India energy Joint Steering Committee agreement to build the new Butwal-Gorakhpur 400KV crossborder transmission line. When completed, it opens up the possibility of Nepal exporting surplus power to regional markets like India and Bangladesh from power projects in the Marsyangdi, Kali Gandaki and Budi Gandaki corridors. With so many hydropower schemes in the pipeline, Nepal may soon have surplus energy at certain times of year, which makes crossborder transmission lines imperative. Discussions about Bangladesh's desire to import up to 9,000MW of electricity means Nepal must have a clear business model for the regional electricity market.

Besides hydropower, the new cr...