KATHMANDU, OCTOBER 18
The state-owned Nepal Electricity Authority (NEA) has generated a net income of Rs 11.828 billion by trading surplus power with India since June 11.
The authority exported electricity worth Rs 9.645 billion to India in the three months between mid-July and mid-October of the current financial year 2023-24. In mid-September to mid-October alone, surplus power worth Rs 4.235 billion was traded with India.
During the review period, the average selling rate per unit of exported electricity to India was Rs 9.18.
NEA has been exporting approximately 110 MW of electricity to the Indian company NTPC Vidyut Vyar Nigam Ltd (NVVN) through both the day-ahead market of Indian Energy Exchange Ltd (IEX) and a medium-term power agreement.
The Central Electricity Authority, under the Ministry of Electricity of India, has granted approval for NEA to export 632 MW of electricity to the competitive market, with 522 MW going to various buyers and 110 MW to NVVN.
This export is facilitated through the Dhalkebar-Muzaffarpur 400 kV cross-border transmission line (562 MW) and the Mahendranagar-Tanakpur 132 kV transmission line (70 MW).
Kulman Ghising, managing director of NEA, emphasised that the exported electricity is bolstering Nepal's foreign exchange reserves and helping reduce the trade deficit with India.
Ghising further explained, "Considering the current situation, it appears that we can potentially export electricity worth around Rs 16 billion this year. We've submitted a proposal to the Central Electricity Authority of India seeking approval to export approximately 100 megawatts of additional electricity.
Unfortunately, we haven't received approval yet, so we've recently resubmitted the proposal.
With the festival season underway, when factories are closed, and the winter has yet to begin in Kathmandu while the heat has subsided in the Tarai region, domestic electricity demand is expected to decrease. We are optimistic about receiving an approval."
He continued, "We are actively enhancing our infrastructure for utilising domestically generated electricity, and electrification projects are in progress to provide electricity to areas currently without access. We are also taking steps to expand and fully utilise the cross-border transmission network between our two countries to export surplus electricity."
A version of this article appears in the print on October 19, 2023, of The Himalayan Times
