Kathmandu, October 10: Nepal’s electricity is being sold at Rs 16 per unit in India’s Day-Ahead Market on Tuesday. According to the data of Indian Energy Exchange (IEX) market, electricity is being sold at the price of INR 10 per unit on Tuesday.
In the Indian market, 24 hours are 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 varies. However, on Tuesday, all 96 blocks are being sold at INR 10 per unit, i.e., Rs 16.
During the Russia-Ukraine war, the price of electricity skyrocketed due to problems in importing coal. About two years ago, India regulated the IEX market and fixed the maximum rate of electricity purchase and sale at INR 12 per unit. All business is now done within this limit.
Recently, the production of electricity in India has decreased due to flood damage in the hydropower projects on the Teesta River. Because of this, electricity sellers could not submit proposals according to the demand, and Nepal’s electricity got a good price. In general, the price of electricity in Nepal is between Rs 5 to 8 per unit. Even in the real-time market of IEX today, Bharu is being traded at Rs 10 per unit.
The Nepal Electricity Authority (NEA) got permission this month 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 a day ahead, can now bid and sell electricity 15 hours in advance.
On July 15, the Ministry of Electricity of India amended the procedures of the bodies designated for the approval and facilitation of electricity import/export (cross border) and arranged that the authorized bodies of the neighboring countries can also participate in the real-time market.
The NEA has received approval for the export of 522 MW to the competitive market and 632 MW to the state of Haryana through NVVN of 110 MW. Out of this, 562 MW electricity is being exported from Dhalkebar-Muzaffarpur 400 KV international transmission line and 70 MW from Mahendranagar-Tanakpur 132 KV transmission line.
NEA exported power worth over Rs 5.43 billion to India in the first two months of the current fiscal year.