December 8, 2023 | Investopaper
Nepal has exported electricity worth Rs 15.24 billion to India during the current year’s rainy season. The export, initiated on Jestha 28, 2080 BS involved selling surplus electricity generated in Nepal to the Indian market. During the period from Jestha to Mangsir, Nepal electricity authority exported a total of 1.7371 billion units of electricity, with a peak daily export of 700 megawatts and an average selling rate of eight rupees and 77 paisa per unit. In the broader fiscal year from July to December, electricity worth Rs 13.23 billion was exported, amounting to 1.476 billion units.
As the dry season sets in, reducing water flow and hydropower production in Nepal, the country has begun importing electricity from the Indian market to meet increased domestic demand during winter. Despite this, Kulman Ghising, the executive director of the authority, anticipates a shift from being a net importer to a net exporter.
Ghising highlighted ongoing infrastructure improvements, including the addition of 900 megawatts to the national transmission system, with projections of exporting Rs 25 billion worth of electricity next year and an annual export of about one hundred billion rupees within the next five years.
Nepal Electricity Authority has been engaged in selling electricity to the Indian company NTPC Vidyut Vyapar Nigam Ltd-NVVN, contributing to the overall export figures. Additionally, approvals from the Central Electricity Authority of India allow for the sale of electricity in both the day-ahead and real-time markets.
The Central Electricity Authority of India has allowed the sale of about 44 MW of electricity in the real time market out of the 522 MW approved for export to the competitive market. The Nepal Electricity Authority has received approval for exporting 547 MW to the competitive market and 657 MW to NVVN.