Electricity worth Rs. 7.5 billion exported to India in two months

Kathmandu, Oct. 10: Electricity worth Rs. 7.54 billion has been exported to India during the first two months of the current fiscal year.

Nepal Electricity Authority (NEA) has exported 1.029 billion units of electricity to India and generated Rs. 7.54 billion income during the first two months (July 16 to September 16, 2024) of the current fiscal year.

According to the NEA, it has exported power worth Rs. 3.92 billion in the Nepali month of Shrawan (July 16 to August 16) and Rs. 3.55 billion in the month of Bhadra (August 17 to September 16) of the current fiscal year.

About 492.8 million units of electricity has been exported in the month of Shrawan while around 536.2 million units of electricity has been exported in the month of Bhadra, it said.

The average rate of electricity export for two months is Rs. 7.33 per unit. The average rate per unit in Shrawan was Rs. 8.11 while it was Rs. 6.62 per unit in Bhadra.

According to the NEA, the highest amount of electricity worth Rs. 995.5 million was exported during a week from September 1 to 8, 2024. 

However, from August 25 to 31, the lowest amount of electricity worth Rs. 690.8 million has been exported.

Electricity trade with India is done in Indian rupees. Therefore, electricity worth IRs. 4.71 billion has been sold in two months of the current fiscal year.

Flood affects power export target 

Managing Director of NEA, Kul Man Ghising has said that the electricity export is currently being affected due to the damage to the hydropower plants and transmission lines that are operating due to the floods. 

"In the current fiscal year, we had set a target to export electricity worth around Rs. 30 billion, but due to the floods and landslides damaging the hydropower plants and transmission lines, electricity production will be stopped and the target will be affected," said Executive Director Ghising.

The authority is selling the surplus electricity in the day-ahead and real-time market of Indian Energy Exchange (IEX) at a competitive rate and in accordance with the bilateral medium-term electricity sale 

agreement in the states of Haryana and Bihar.

The Authority has so far received approval to sell 941 MW of electricity produced by 28 projects in the Indian market in accordance with the competitive market and medium-term electricity sales agreement. Before the flood, around 900 megawatts of electricity was being exported daily. Currently, only around 150 megawatts of power is being exported daily. 

About 750 megawatts of power generation, including the largest 456-megawatt Upper Tamakoshi Hydropower Project, has been hampered due to the floods.

Last year, electricity worth Rs. 17.06 billion was exported while electricity worth Rs. 16.93 billion was imported from India. 

In the last year, Nepal became a net exporter of electricity from being a net importer of electricity by exporting more than Rs. 130 million more than imports.

Nepal entered the Day Ahead Market of Indian Energy Exchange on May 1, 2021. 

Nepal, which initially got the permission to import electricity, was also admitted as an exporter on November 3, 2021. 

Recently, NEA, Bangladesh Power Development Board (BPDB) and NTPC Vidyut Vyapar Nigam (NVVN) signed an agreement allowing Nepal to sell its electricity to Bangladesh in Kathmandu. 

As per the agreement, Bangladesh will now import 40 megawatts of electricity from Nepal.