NEA begins exporting 400 MW power to India daily

Kathmandu, May 31: The export of electricity to India has started from this week. According to Nepal Electricity Authority (NEA), it has started selling the surplus electricity from Monday (May 27) night in the Indian Energy Exchange (IEX) market at a competitive rate.

With the increase in the water flow in the rivers and streams, the export of surplus electricity has been started owing to the increase in the electricity production by the hydropower projects owned by the Authority, its subsidiary companies and the private sector.

Managing Director of NEA Kul Man Ghising said that electricity was currently being exported at a rate of 400 megawatts on a daily basis.

“As the flow of water in the rivers and streams is gradually increasing, electricity generation is also increasing. Domestic consumption has reached 2,000 megawatts during the peak period. In the past 7-8 years ago, the daily electricity consumption was around 10-15 million units, but now it has increased to 45 million units,” he said.

"We have set a target to export about 1,000 to 1,200 megawatts of surplus electricity after meeting the domestic demand this year according to the competitive market and bilateral agreements. We have sent a proposal to the Central Electricity Authority of India for the list of projects for export approval,” said Ghising"

As per the bilateral agreement, the proposal has been sent to the Central Electricity Authority of India for approval after making an agreement with the Power Trade Company for the sale of about 200 megawatts of electricity to the state of Bihar and about 400 megawatts to the state of Haryana with NTPC Vidyut Vyapar Nigam Ltd. (NVVN), he said.

The Central Electricity Authority of India has so far approved the export of 656 megawatts of electricity produced by 15 hydropower projects in Nepal to the competitive market. 

Of the 656 megawatts, approval has been received from India to sell 110 megawatts of electricity to NVVN for five years from June to October every year according to the mid-term electricity agreement. 

The NVVN has been selling the electricity to the state of Haryana. Nepal has also been allowed to buy and sell electricity in real time market.

Out of 656 MW, 586 MW is being exported from Dhalkebar-Muzaffarpur 400 kV cross-border transmission line and 70 MW is being exported from Mahendranagar-Tanakpur 132 kV transmission line.

MD Ghising said that there was some problem of power supply in the industries of Birgunj area as one circuit was being closed and wire (conductor) was being replaced to expand the capacity of the 132 kV double-circuit transmission line from Piluwa substation in Bara to Parwanipur substation.

Currently, one circuit is being closed to replace the current conductor of the Piluwa-Parwanipur transmission line and make HTLS. Due to the supply from only one circuit, the demand for electricity is not being met and because it cannot be imported from India at night, there is some problem of electricity supply in the industries of the Birgunj corridor.

“It will be completed in a day, after which the current problem will be solved. After replacing the conductors of both circuits, the current capacity of Piluwa-Parwanipur 132 kV transmission line, which can transmit about 200 megawatts of electricity, will be doubled. Electricity will also be exported to India from Parwanipur substation,” he said.

Electricity worth Rs. 15 billion imported in winter

According to NEA, electricity worth Rs. 15.21 billion had been imported from India to meet the domestic electricity demand during this year's winter season. 

With the onset of the dry season, the flow of water in the rivers and streams dips and the production of electricity from the river-flowing hydropower plants in the country decreases, so electricity has been imported from India to meet the demand. During this period, around 1.81 billion units of electricity have been imported.

The Authority has exported electricity worth Rs 15.62 billion to India from May last year to this year. 

Electricity worth Rs. 13.47 billion has been exported since July of the current fiscal year. During the current fiscal year, 1.49 billion units of electricity has been exported.

In the current fiscal year, the Authority has imported electricity worth Rs. 1.74 billion more than exports. During this period, 1 billion 49 million 29 million units of electricity were exported.

The price of imported electricity is cheaper than that of exported electricity, said Ghising. 

The average price per unit of exported electricity is Rs. 9.02, while the average price per unit of imported electricity is Rs. 8.38.

Ghising said that the country would become net exporter in electricity this fiscal year on the basis of the quantity of electricity to be exported in the remaining days of the current fiscal year.