By Laxman Kafle
Kathmandu, Nov. 3: Nepal has been permitted to sell electricity at a competitive rate in the Indian energy market. The Ministry of Power of India, the body approving inter-country electricity trade, on Monday gave the Nepal Electricity Authority (NEA) the permission to sell electricity in the Indian Energy Exchange market.

In the first phase, the NEA is allowed to sell 39 MW of electricity generated from 24 MW of Trishuli and 15 MW of Devighat hydropower plants in Nuwakot as a source to the Indian Energy Exchange (IEX). NEA will start exporting electricity through Dhalkebar-Muzaffarpur 400 kV cross-border transmission line from Tuesday midnight, according to the NEA.
Currently, the line is being used only for the import of power.

Nepal has already received permission to purchase and import electricity from the IEX. The NEA has been importing electricity through the IEX since April 30 this year.
Milestone for electricity trade: Bhusal
Minister for Energy, Water Resources and Irrigation Pampha Bhusal said that Nepal had entered Indian Energy Exchange market for the purchase and sale of electricity.

"Through continuous efforts at the political, diplomatic and administrative levels, we are allowed to sell surplus electricity. This is a milestone for energy trade between the two countries," she said.
"We hope to get permission soon to sell the electricity generated from the 456 MW Upper Tamakoshi, 69 MW Marsyangdi and 45 MW Upper Bhotekoshi hydropower projects in the Indian market," Bhusal said.
Managing Director of NEA Kul Man Ghising said that the power trade permission has added a brick in Nepal-India relations. After a long effort for power trade between Nepal and India, the export of Nepal's electricity to the Indian market is going to begin and it will open a door for the development of hydropower in Nepal.

He said, "Even though the export of electricity has started in small quantities, we are confident that electricity generated from other projects, including Upper Tamakoshi, could be exported to the Indian market soon."
Nepal will sell electricity under central electricity system of India.
The NEA will compete in the bid every day from 10 am to 12 noon with the quantity of electricity sold in the exchange market. The selling rate per unit of electricity will be decided on the basis of market clearing price. Once the competitive rate is fixed, electricity will be exported 24 hours a day.

When the price of coal increased in India, the price of electricity in the exchange market had reached IRS 28 per unit. The entire transaction of the exchange market on behalf of the NEA will be done by the Nodal Agency – NTCP Vidyut Vyapar Nigam (NVVN), India, for electricity trade with Nepal.
According to the NEA, the NVVN will send details of daily transactions to the NEA by 6 pm every day.