Kathmandu, 30 Sept 2023. For the first time, the Nepal Electricity Authority has received permission to sell electricity in the real time market of India’s Energy Exchange (IEX). In India’s competitive energy market, the authority, which has been selling electricity by bidding one day ahead, will now be allowed to sell electricity by bidding one and a half hours in advance.
The Central Electricity Authority under the Ministry of Electricity of India has given permission to the Nepal Electricity Authority to sell electricity in the real time market on Saturday. Under this, according to the production, the authority will be allowed to conduct electricity transactions in the Indian market by bidding 1.15 hours before.
On 30th July, the Ministry of Electricity of India had arranged for the authorized bodies of the neighboring countries to participate in the real time market through amending the procedures of the bodies designated for approval and facilitation of electricity import/export (cross border). In the first phase, the Central Electricity Authority of India has approved the sale of around 44 MW of electricity generated by the 19.4 MW Lower Modi and 24.25 MW Kabeli B1 hydropower projects in the real time market. The electricity of both these projects was now being sold in the day-ahead market. The permission given to the day ahead market was ending on Saturday. Prabal Adhikari, director of the electricity trade department of the authority, said that two projects have been sent for renewal of day ahead and have received permission for sale in both day ahead and real time market. Now the electricity of the two projects can be sold day ahead and according to need in the real time market, the director officer mentioned. “Earlier, we had to wait a day to import and export electricity from the competitive market, but now we are able to do business by bidding 1.15 hours in advance. This has made it possible to buy and sell electricity if the electricity production suddenly stops or if the production increases,” said the official. “Since we were only participating in the day-ahead market, now being able to participate in the real-time market is a new experience and achievement for us. Along with the convenience of electricity management, a new brick has been added to the electricity trade between the two countries.”
The authority has been exporting to India the electricity saved during the rainy season after consumption within the country. The authority has been selling about 110 megawatts of electricity to the Indian company NTPC Vidyut Vyar Nigam Limited-NVVN through competition in the day-ahead market of IEX and as per the mid-term power agreement since some time ago. NVN is selling the power in the state of Haryana.
The Authority has received approval for exporting 522 MW to the competitive market and 110 MW to the Haryana state through NVVN with total of 632 MW. Out of this, 562 MW electricity is being exported from Dhalkebar-Muzaffarpur 400 KV cross boarder transmission line and 70 MW from Mahendranagar-Tanakpur 132 KV transmission line. In August and September of the current fiscal year 2023/24, the NEA exported electricity worth Rs 433.1 million to India.