KATHMANDU, JULY 1
The state-owned Nepal Electricity Authority (NEA) has traded surplus power worth Rs 1.72 billion within a month in the Indian energy market at competitive rate.
NEA stated that altogether 39 MW, including 24 MW produced from Trishuli hydropower and 15 MW from Devighat powerhouse, had been traded in the Indian Energy Exchange (IEX) since June 2. Since then, NEA has sold 364 MW surplus power in IEX on a daily basis from June 10.
NEA Executive Director Kulman Ghising said that trade of surplus electricity to the Indian market, which started last year, has moved forward more effectively this year.
"Looking at the quantum of electricity exported in June and the selling price, the electricity trade with India has progressed smoothly. Moreover, it has helped to give some relief in the current situation of pressure on foreign exchange reserves where we have been able to earn foreign exchange by selling surplus electricity during the rainy season," said Ghising.
According to him, the trading of surplus energy will help reduce Nepal's trade deficit with India and also contribute to propping up the country's balance of payment.
As per NEA, 170.819 million units of electricity were sold in the Indian energy market in June and income from the sale stood at Rs 1.72 billion after deducting all charges. The average rate of electricity sold at the competitive rate over the last month was at Rs 9.67 per unit According to the authority, power is being traded at a competitive rate set by the IEX - dividing 24 hours into 96 blocks of 15 minutes each.
NEA received the highest average rate of electricity sales on June 15 where the average per unit rate was Rs 15.93. The lowest average rate was Rs 4.92 per unit which was on June 21. Likewise, last month the highest transaction of Rs 70.28 million was made on June 14 where 7.8 million units of electricity were sold. Similarly, lowest was 904,800 units of electricity traded for Rs 5.6 million in June 3.
Ghising said that the income from the export of electricity is projected to be around five billion rupees in the current fiscal year and around Rs 20 billion in the coming year. He further stated that the power trade with India would be a major boost for development of Nepal's hydroelectricity. Emphasising that NEA prioritises domestic consumption, Ghising said that the state needs to increase investment in the infrastructure of transmission and distribution systems.
"There have been complaints from mainly industrial customers about lack of reliable and quality power when the line is tripping repeatedly due to voltage fluctuations. The improvement, expansion and upgradation of the transmission and distribution system structure across the country have been ramped up to address such problems."
A version of this article appears in the print on July 2, 2022, of The Himalayan Times.
