Kathmandu, December 20, 2022. By December 18 of this year, electricity worth 11 billion 163 million rupees has been exported to India. Nepal Electricity Authority has exported one billion 3577757 thousand units of electricity which was surplus to domestic consumption and earned 11 billion 163 million rupees.
The authority had started selling the surplus monsoon electricity consumed within the country from 19th Jestha 2079(2nd June,2022) through competition in the day-ahead market of Indian Energy Exchange Limited (IEX). As the electricity trade with India is done in Indian rupees (Bharu), during this period, 6.97 billion 69 lakh Bharu has been brought into Nepal from the sale of electricity.
Initially, 39 megawatts of electricity produced from two hydropower plants were considered as the source and sales were started on IEX on a daily basis. After that, from 27th of June, 364 megawatts of electricity produced from 6 hydropower stations were considered as a source and sold in the Indian market at a competitive rate. The Authority had received approval to export the electricity produced from two more hydroelectric plants from last October 18 and 30. Along with this, the approved capacity of electricity exported to India is four hundred and eight megawatts, considering the electricity produced from eight hydropower stations as the source.
The authority exported 299.1 million units of electricity in May and June of last financial year 2078/79 and earned two billion 83 million 88 million rupees. By Dec 18 of the current year 2079/80, one billion five crore 86 lakh 34 thousand units of electricity have been exported and eight billion 32 crore 42 lakh 40 thousand rupees have been earned.
The authority’s Managing director Kulman Ghising said that the electricity demand in Kathmandu Valley and other areas increased due to the cold weather, but the production from the river-based hydroelectric power stations decreased due to the decrease in water flow in the river channels.
Executive Director Ghising mentioned that due to the decrease in production in the country, there is a dire situation of having to import electricity from India to meet the electricity demand for about four months of winter. Ghising said that electricity export will start again from the end of Baisakh to the first week of June.
“Due to the decline in production within the country, electricity imports have started on a daily basis to meet domestic demand. Our forecast is that electricity imports will continue for about 4 months, but the amount of electricity imports will be less than exports,” said Executive Director Ghising. “In the previous years, the amount of electricity export was less than the import, from this year the export will be more and the import will be less, we will become a net exporter both in terms of electricity export and the amount received from it.”
The authority has been buying and selling electricity in the competitive market of IX. “We are discussing whether to buy only from IEX or to enter into a short-term power purchase agreement with the producers,” he mentioned. “We are studying the market for this.”
For buying and selling electricity in IEX, 24 hours is divided into 96 blocks of 15-15 minutes and electricity is traded at a competitive rate set by the market. Therefore, the price of each block is different. The average rate of electricity exported by the authority till 3 January is eight rupees 22 paise per unit.