Kathmandu — The President of the Independent Power Producers’ Association of Nepal (IPPAN), Ganesh Karki, said that the recent efforts being made to construct transmission lines between Nepal and India are positive. He stated that India is seeking to import more electricity through these developments. Karki interpreted the Indian government’s interest in expanding the power transmission network with Nepal as a sign that India is preparing to increase its electricity imports from Nepal in the future.
He stated that India is planning to manage its long-term electricity needs, and emphasized that Nepal should no longer hesitate in electricity production. According to Karki, India has realized that it needs Nepal’s electricity. India foresees a situation 5–10 years from now where it will require electricity, and that electricity should come from Nepal. Otherwise, he believes, India would have no reason to invest so heavily in building transmission lines. Karki also noted that India is preparing to purchase electricity, but Nepal has not been able to increase its electricity production. Now, as India is getting ready to buy electricity, Nepal must be prepared in terms of electricity production and create an environment accordingly, he said.
At a program held in the capital, IPPAN President Karki said, “The Nepalese government raised the issue of building a transmission line with the Indian government. What I feel is that the Indian government seems willing to buy electricity from Nepal whenever it needs it. India foresees a situation 5–10 years from now where it will need electricity, and that electricity should be imported from Nepal. But at the same time, whether we Nepalese are ready to produce electricity or not matters. To be ready, we must also make preparations accordingly and start electricity production.”
Karki stated that the transmission line of the MCC project and other transmission lines are currently under construction. Once these networks are completed, the demand for electricity will increase even further. According to Karki, the government now needs to introduce a clear policy in the hydropower sector; otherwise, it must inform energy producers that if India or Bangladesh needs electricity, they should be allowed to invest on their own, build the infrastructure, and supply it.
According to Karki, even if Nepal makes progress in transmission, failing to increase electricity production poses the risk of missing out on significant opportunities in the future. Currently, the Nepal Electricity Authority (NEA) has permission to export 283 megawatts of electricity to India. The approval to export 283 megawatts of electricity produced from eight different hydropower projects in Nepal has been renewed by the Indian side. The Electricity Authority is selling the surplus electricity, after domestic consumption, in India’s energy exchange (IEX) through day-ahead and real-time markets at competitive rates, as well as to the states of Haryana and Bihar under bilateral medium-term electricity sale agreements.
Electricity is also being exported to Bangladesh using India’s transmission infrastructure. Last week, the approvals for four projects to sell electricity at competitive rates in the Indian Energy Exchange (IEX) market were renewed. The approval to sell 103 megawatts of electricity generated from these projects in the IEX had expired on different dates. With the renewal of export approvals for all these projects for about one year, selling electricity to India has now become easier in the coming days.
Similarly, under bilateral agreements, approximately 180 megawatts of electricity generated from four projects are being sold to the state of Haryana.
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