Electricity worth Rs. 2bn exported in first month of FY 2022/23

By Laxman Kafle, Kathmandu, Aug. 22: Nepal Electricity Authority (NEA) has exported electricity worth Rs. 1.83 billion to India in a month (mid-July to mid-August) of the current fiscal year 2022/23.

The power utility has exported 242.68 million units of electricity saved from domestic consumption to India.  The Authority is able to earn an average of Rs. 59.3 million per day in Nepali month of Shrawan from electricity export.

The Authority started selling the surplus electricity in the rainy season through competition in the day-ahead market of Indian Energy Exchange Limited (IEX) from June 2, 2022.

In the beginning, 39 megawatts of electricity produced by two power plants was considered as a source and was sold to IEX on a daily basis. Since then, 364 megawatts of electricity produced by six hydropower plants have been sold daily in the Indian market at a competitive rate since June 10, 2022.

In the IEX, 24 hours are divided into 96 blocks of 15 minutes each and electricity is traded at a competitive rate set by the market. Therefore, the price of each block is different.

Electricity worth Rs. 3.88 billion was exported during the last fiscal year. The electricity is being exported through the Dhalkebar-Muzaffarpur 400 kV cross-border transmission line.

About 735 MW of electricity generated from solar plants, Upper Tamakoshi and the private sector's hydropower plants added to the national grid in the last fiscal year.

Managing director of NEA Kul Man Ghising said that it had succeeded in selling electricity through competition in the Indian market after the generation of electricity more than domestic demand during the rainy season with the addition of 735 MW only in the last fiscal year.

"The increase in electricity exports has not only supported in improving the financial condition of the authority, but also greatly supported the national economy contributing to increased foreign exchange reserves and minimised trade deficit between the two countries," he said.

"As electricity production in the country is increasing day by day, it is necessary to increase household and industrial consumption. For this, development and improvement of transmission and distribution lines will be arranged as well as arrangements will be made for industrialists to get special services and facilities."Additional 111 MW export proposal

The NEA has proposed to sell an additional 111 megawatts of surplus electricity in the rainy season in the day-ahead market of the IEX through competition.

The Authority has submitted a proposal to the Central Electricity Authority under the Ministry of Power of the Government of India for the sale of electricity produced by four hydropower plants through competition in IEX as a source.

After getting permission from the Central Electricity Authority, India, additional electricity will start being exported.

The utility has submitted a proposal for export of 111.8 megawatts of electricity generated from 42 megawatt Mistrikhola, 24.2 megawatt Likhukhola 'A', 23.5 megawatt Solukhola, and 22.1 megawatt Chilime power plant.

MD Ghising expressed his confidence that permission will soon be obtained from the government of India for the export of more electricity.

"In order to make full use of the 132 kV transmission line built to exchange electricity between Nepal and the Indian State of Bihar, necessary discussion is being held with the concerned authorities of the government of India to sell the surplus power during the rainy season to entities other than the North Bihar Power Distribution Company Limited," he said

Under the central electricity system of India, electricity is sold in the day-ahead market.

The Authority has a competition in bids with the quantity of electricity to be sold in the exchange market from 10 am to 12 noon every day. The selling rate per unit of electricity is determined based on the 'market clearing price' determined by the electricity system.

After the competitive rate is decided, electricity is exported from 12-midnight to 12-midnight the next day, i.e. 24 hours.

On behalf of the NEA, all transactions in the exchange market are carried out by the designated Nodal Agency-NTPC Vidyut Vyapar Nigam (NVVN) for electricity trade with Nepal.

NVVN sends daily transaction details to the authority at 6 pm every day.