KATHMANDU, NOVEMBER 2

Nepal has received permission for power trading in the Indian energy market at competitive rate.

The Energy Exchange under the India's Power Ministry on Monday granted permission for Nepal's power to be traded in Indian power exchange market.

In the first phase, 39MW power, including 24MW produced from Nepal Electricity Authority-owned Trishuli hydropower and 15MW Devighat power house has been permitted for trading in Indian Energy Exchange.

The NEA will start exporting the power through 400- kV Dhalkebar-Muzaffarpur inter-country transmission line from midnight. This transmission has until now been used just to import power.

Nepal had already received permission for purchasing and importing power in Indian Energy Exchange. With this, the NEA has been importing power through Indian Energy Exchange at competitive rate since last April 30 as per need. After obtaining the approval, the power trade between Nepal and India has entered a new phase.

Minister for Energy, Water Resource and Irrigation Pampha Bhusal said Nepal has become the first country in the South Asian region to enter into the agreement for power import and export from and to Indian energy exchange market.

'We have been permitted for the trade of surplus power after continuous efforts at political, diplomatic and administrative levels. This is a milestone for power trade between the two countries,' Minister Bhusal added.

She further said, 'We also expect the approval for trade of power produced from the 456MW Upper Tamakoshi, 69MW Marsyangdi and 45MW Upper Bhotekoshi power house in the near future.'

A version of this article appears in the print on November 03, 2021, of The Himalayan Times.