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ECONOMY

Nepal earns Rs 12.72 billion by selling electricity to India in four months

The NEA has so far received approval to sell 941 MW of electricity produced from 28 projects in the Indian market under the competitive market and medium-term power sale agreements.
By Republica

KATHMANDU, Nov 20: Nepal sold electricity worth Rs 12.72 billion to India during the first four months of the current fiscal year 2024/25.


The Nepal Electricity Authority (NEA) has earned revenue by exporting Rs 1.68 billion units of electricity to India during the months of Shrawan (mid-July to mid-August), Bhadra (mid-August to mid-September), Ashoj (mid-September to mid-October), and Kartik (mid-October to mid-November) of the current fiscal year, which were surplus from domestic consumption. The average rate for electricity exported to India is Rs 7.63 per unit.


The NEA is selling surplus electricity, which was consumed domestically, in the Day-Ahead and Real-Time Markets of the Indian Energy Exchange (IEX) at competitive rates, as well as through bilateral medium-term power sale agreements in the states of Haryana and Bihar. Electricity exports to Bangladesh have also started using India's transmission infrastructure. The electricity trade with India is conducted in Indian Rupees (INR).


The Managing Director of the NEA, Kulman Ghising, stated that the export of electricity was affected due to damage caused to the operational hydropower plants and transmission lines by the floods and landslides in the month of Ashoj, which led to a halt in power production.


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Among the operational hydropower projects, the largest, the 456 MW Upper Tamakoshi, has remained non-operational due to landslide damage to its structure. Similarly, other smaller projects have also been damaged, leading to a halt in power production. Ghising mentioned that the flooding in the Mai Khola area has damaged the Kabeli Corridor transmission line, affecting the export of around 200 MW of electricity from various connected projects. He expressed concerns that the target of exporting electricity worth around Rs 30 billion set for the current fiscal year may not be achieved.


The reconstruction of the Upper Tamakoshi project is progressing rapidly, and the reconstruction of the Kabeli Corridor transmission line has been completed and is now operational. However, with the onset of winter, water flow in rivers and streams will decrease, leading to reduced electricity production from hydropower projects. As production will only meet domestic demand, electricity exports will gradually decrease. In some months of winter, Nepal may even need to import electricity from India.


In the month of Shrawan, electricity worth Rs 4.15 billion was exported from Nepal. A total of 495.7 million units of electricity were exported at an average rate of Rs 8.36 per unit.


In the month of Bhadra, electricity worth 3.68 billion was exported. The 559.4 million units of electricity exported in Bhadra had an average rate of Rs 6.58 per unit.


In the month of Ashoj, electricity worth Rs 3.65 billion was exported. A total of 379.3 million units of electricity were exported that month, with an average rate of Rs 8 per unit.


"In the month of Kartik, 233.6 million units of electricity were exported. This month, electricity worth only 1.84 billion was exported, with an average rate of Rs 7.84 per unit.


The NEA has so far received approval to sell 941 MW of electricity produced from 28 projects in the Indian market under the competitive market and medium-term power sale agreements.


In the last fiscal year, electricity worth Rs 16.93 billion was imported from India, while electricity worth Rs 17.06 billion was exported during the same period. By exporting Rs 130 million more electricity than it imported, Nepal transitioned from being an importer to an exporter of electricity.


 


 

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