We need to focus on utilising the clean energy by attracting industries to be set up within the country
For the first time since Nepal and India reached the Power Trade Agreement on October 21, 2014 during the official visit of Indian Prime Minister Narendra Modi, Nepal has received permission for power trading in the Indian energy market at a competitive rate, which came into force from Monday. Initially, Nepal will be selling 39 MW of energy – 24 MW produced from Trishuli Hydropower Project and 15 MW from Devighat Hydel Project – in the Indian power exchange market. The state-owned Nepal Electricity Authority (NEA) has started exporting energy through the 400 kV Dhalkebar-Muzaffarpur inter-country transmission line from Monday midnight at NRs 4.33 (IRs 2.71) per unit. Until now, this transmission line has been used just to import energy from Bihar and to provide power to India on credit or on an exchange basis so that Nepal could import the same amount of energy from Bihar when it faces an energy shortage during the winter season, when Nepal's most of the run-of-the-river projects run at low capacity. As per the Indian permission, Nepal's energy will be traded in the Indian market on a daily basis through a bidding process. This development has not only ended Nepal's compulsion to import energy from India but has also enabled Nepal to sell its surplus energy in the Indian market at a competitive price. Nepal has also become the first country in South Asia to take part in Indian energy exchange.
Nepal has also sought India's permission to sell surplus energy produced from the Upper Tamakoshi, Marshyangdi and Upper Bhotekoshi. After the 456 MW Upper Tamakoshi Hydel Project came into operation two months ago, Nepal has had a surplus energy of up to 200 MW in the daytime and around 500 MW at night time. However, India's procedure for approval and facilitating import/ export of electricity by the designated authority-2021 has put a ban on purchasing energy produced or distributed from investment by other countries than Nepal. Nepal has been lobbying the Indian authorities to remove this provision so that even energy produced by the private sector can be exported to India's energy market.
India decided to purchase energy from Nepal on a competitive bidding after most of its coal-fed thermal plants started running low recently due to a short supply of coal. Still, this is a positive development that Nepal has been allowed to sell its surplus energy in the Indian energy market. However, what we need to bear in mind is that no country can gain prosperity by exporting raw energy at a low cost. The NEA has so far reached a power purchase agreement (PPA) with the private sector at Rs 8.40 per unit during the dry season and Rs 4.80 during the wet season.
The NEA will be at a loss if it always intends to sell energy at a lower price than the PPA rate it has reached with the private sector. Therefore, we need to focus on utilising the clean and renewable energy by attracting more industries, manufacturing plants and the services sector to set up within the country. The government and the NEA should encourage people to switch to electric vehicles and electric stoves, both of which can easily consume the surplus energy. But people will hesitate to switch to electric devices unless there is reliable energy supply round the year.
Good initiative
The government's initiative to inoculate people returning home from Kathmandu for the Tihar festival with the COVID-19 vaccine is highly laudable.
The government has set up vaccination centres at the Gongabu Bus Park, Kalanki, Balkhu and Koteshwor, from where long route buses depart for different destinations outside the Kathmandu Valley. The general public were administered either the Verocell or Astra- Zeneca vaccines after showing proof of their age. The government could have made a similar endeavour during Dashain, when about 1.3 million people left the Valley to celebrate the festival with their family.
Nepal's diplomatic efforts have paid off with a host of countries and organisations from China and India to the USA, Japan, UK and WHO providing the vaccines.
Until now, more than 16 million doses of the COVID-19 vaccine have been administered across the country, with 8.6 million people having received the required two doses. The inoculation rate looks impressive, but it is months away before the entire eligible population above 12 years of age is fully inoculated.
Hopefully, this can be done by mid-April as promised by the government so that the younger children can take their turn.
A version of this article appears in the print on November 04, 2021, of The Himalayan Times.
