Kathmandu, 30 April 2078. Nepal Electricity Authority (NEA) has started purchasing electricity directly from the Indian energy market at competitive rates. NEA will purchase 200 to 250 MW of electricity from the Indian Energy Exchange market from 12 noon on Saturday and import it through the Dhalkebar-Muzaffarpur cross-boarder transmission line.
NEA Managing Director Hitendra Dev Shakya said that Nepal has become the first country in South Asia to enter the Indian energy exchange market for electricity trade. As all preparations have already been made, NEA has succeeded in entering the Indian market and purchasing electricity as soon as it gets permission, said Executive Shakya.
Shakya mentioned that the per unit price of electricity including all charges is 3.81 Indian rupees. “When NEA purchased electricity for Saturday at the rate fixed by the Indian market for the first time, we got electricity at 37 paisa cheaper than the current import price. This has saved us around Rs 3 million 48 thousand. We have started the process for purchasing electricity on other days as well,” he said. . NEA currently imports electricity from India through Dhalkebar-Muzaffarpur cross-boarder transmission at Rs 4.18 per unit. NEA is currently importing most electricity through Dhalkebar-Muzaffarpur transmission line.
NEA and Indian company NTPC Power Corporation Limited (NVVN) have signed a power purchase agreement (PPA) for Dhalkebar-Muzaffarpur transmission line up to 250 MW in July-November, 350 MW in December-April and up to 200 MW in May-June. The PPA is valid till June 30, 2021.
NVVN, the Indian nodal company, will conduct all transactions on behalf of NEA for the purchase of electricity from the Indian exchange market. NVVN will send daily transaction details to NEA at 6 pm every day. According to Managing Director Shakya, NEA has to send the payment within five days after the daily bill of electricity traded in the exchange market is submitted by NVVN.
NEA plans to sell the surplus electricity in the Indian market by consuming it internally after the completion of the 456 MW Upper Tamakoshi Hydropower Project. As Nepal is a member of the Indian Energy Exchange market and has already entered, it will be easier to sell electricity, said Executive Director Shakya.