KATHMANDU, Sept 21: Nepal exported electricity worth Rs 2.42 billion to India in the month of August of the current fiscal year 2022/23.
The Nepal Electricity Authority (NEA) exported 246.6529 million units of electricity in August, which was surplus to the domestic consumption and earned more than Rs 2.426 billion.
The NEA started selling the surplus monsoon electricity through competition in the day-ahead market of the Indian Energy Exchange Limited (IEX) from June 2.
In the beginning, 39 megawatts of electricity from two power plants was sold daily in IEX, and then from June 10, 364 megawatts of electricity produced from six hydropower plants is being sold daily in the Indian market at a competitive rate.
According to the NEA, between May, June, July and August, 780 million 78 thousand units of electricity have been sold in the Indian market, earning about Rs 7.2 billion.
The NEA has stated that IC 4.4991 billion has entered Nepal from the sale of electricity during the period of 4 months in electricity trade with India. In August alone, the country earned Rs 1.5105 billion from the sale of electricity.
"In the current year, we have set a target of earning about Rs 16 billion from electricity export. If we can export electricity till mid-November, we estimate that the target will be met when the export starts again after May," Kulman Ghising, executive director of the NEA, said, "Now that the festival season is about to start, the domestic consumption will slightly decrease as factories will be closed. However, since our production will be at full capacity, we have sent a proposal for consent to export about 200 megawatts of electricity.”
In IEX, 24 hours is divided into 96 blocks of 15 minutes each, and electricity is traded at a competitive rate set by the market. So, the price of each block is different. The average rate of electricity exported by the authority in August is Rs 9.80 per unit. The four-month average rate is Rs 9.23 per unit.
Proposal to export an additional 100 MW
The NEA has proposed selling an additional 100.9 MW of surplus monsoon power through competition in the day-ahead market.
A few days ago, the authority submitted a proposal to the Central Electricity Authority under the Ministry of Power of the Government of India for the sale of the electricity produced by four hydropower plants through competition in IEX as a source.
Earlier, the NEA had submitted a proposal for permission to export 111 MW electricity generated from four hydropower projects. Along with the proposal for four more hydropower projects, the authority has submitted a proposal for the export of 212.7 megawatts of electricity produced from eight hydropower projects.
The export of electricity from 100.9 MW of electricity will be generated from private sector constructed 29.04 MW Likhu River A, 25 MW Kabeli B-1, 22 MW Mai River, 14.9 MW Hewa River A and 10 MW Lower Modi-1 Hydropower plant.
Earlier, proposals for export of 111.8 MW of electricity produced from 42 MW Mistri River, 24.2 MW Likhu River 'A', 23.5 MW Solu River, and 22.1 MW Chilime power plant were submitted for approval.