Kathmandu, July 28: Nepal exported electricity worth Rs 16.93 billion to India in the last fiscal year 2023/24.
The Nepal Electricity Authority (NEA) made an income of Rs 16.93 billion by exporting 1.94 billion units of electricity to India last fiscal year.
NEA has been selling the surplus power at the Indian Energy Exchange’s day ahead and real-time market at a competitive rate as well as to Indian company NTPC Vidyut Vypar Nigam Limited as per a mid-term power agreement.
The NVVN has been selling the power to India’s Haryana state. The average rate of exported power is Rs 8.72 per unit.
Power worth Rs 16.81 billion was imported to Nepal last fiscal year, according to NEA. Around 183 billion units of electricity were imported from India to meet the high demand for electricity at home during the winter season after power production decreases from hydropower projects due to a lack of water flow in rivers and rivulets across the country.
The average rate of power imported during the winter season is Rs 9.17 per unit. Power of more than Rs 122.3 million was exported to India as compared to imports last fiscal year.
Nepal had imported power worth Rs 19.44 billion in the fiscal year 2022/23 while electricity worth Rs 10.45 billion was exported.
Managing Director of NEA, Kulman Ghising said that even though power should be imported to fulfill domestic demands for a few months of the winter season till the next few years, the volume of exports will also increase.
Nepal was entered into the Day Ahead Market of India’s Energy Exchange on May 1, 2021. Initially, Nepal, which was allowed to import electricity, was also admitted as an exporter on November 3, 2021. Currently, Nepal is selling about 700 megawatts of electricity daily to India in the medium term, day ahead and real time markets. The Authority has received permission to export 690 megawatts of electricity produced by 16 projects.
Managing Director Ghising mentioned that, according to the mid-term agreement, an additional 400 megawatts of electricity is in the process of being granted permission for export. “We are in the process of receiving permission from the relevant authorities in India to export 400 megawatts of electricity to the states of Haryana and Bihar. We will soon finalize an agreement with Bangladesh to export 40 megawatts this year,” said Ghising.
Electricity produced by private sector hydropower projects, which have power purchase agreements with a “take or pay” condition, has not been wasted except in cases of transmission line problems.
