NEA starts importing electricity from India at competitive rate

Published On: May 2, 2021 01:00 PM NPT By: Republica  | @RepublicaNepal


KATHMANDU, May 2: Nepal Electricity Authority (NEA) has started purchasing electricity directly from the Indian Energy Exchange market at competitive rates. 

The NEA has started importing 200 to 250 MW of electricity through the Dhalkebar-Muzaffarpur interstate transmission line by purchasing the electricity from Saturday midnight. NEA Managing Director Hitendra Dev Shakya said that Nepal has become the first country in South Asia to enter the Indian energy exchange market for electricity trade.

As all preparations had already been made, NEA has been able to enter the Indian market and purchase electricity as soon as it got the permission. Shakya said Nepal has bought electricity at Indian Rupees 3.81 per unit with all charges. “When NEA purchased electricity for Saturday at the rate fixed by the Indian market for the first time, we got electricity at 37 Indian paisa cheaper than the current import price. This has saved us about Rs 3.48 million,” he said, “We have started the process for purchasing electricity on other days as well.”

The NEA currently imports electricity from India through the Dhalkebar-Muzaffarpur interstate transmission line at INR 4.18 per unit. The authority is currently importing most of the electricity through the Dhalkebar-Muzaffarpur transmission line. NEA and Indian company NTPC Vidyut Vyapar Nigam (NVVN) signed a power purchase agreement (PPA) to purchase up to 250 MW of electricity through the Dhalkebar-Muzaffarpur transmission line during July-November, up to 350 MW during December-April and up to 200 MW during May-June. The PPA expires on June 30, 2021.


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