Electricity Worth Rs. 16.93 Billion Exported to India in FY 2080/81
July 29, 2024 | Investopaper
Nepal Electricity Authority (NEA) reported that in the last fiscal year, it exported electricity worth Rs. 16.93 billion to India. During this period, NEA exported a total of 1.94 billion units of electricity. Concurrently, Nepal imported electricity from India amounting to Rs. 16.81 billion, resulting in a net export value of Rs. 122.3 million more than its imports.
NEA has been selling the surplus electricity within the country on India’s Day Ahead and Real Time Market platforms at competitive rates. Additionally, under medium-term electricity agreements, NEA also sells power to the Indian company NTPC Vidyut Vyapar Nigam (NVVN), which supplies this electricity to the state of Haryana.
During the winter, when production decreases, NEA imports electricity. Last year, NEA imported 1.83 billion units of electricity from India. The average rate for exported electricity was Rs. 8.72 per unit, whereas the average rate for imported electricity was Rs. 9.17 per unit.
In the previous fiscal year 2079/80, Nepal imported electricity worth Rs. 19.44 billion from India, while exporting electricity worth Rs. 10.45 billion.
Nepal entered India’s Day Ahead electricity market on May 1, 2021, initially obtaining permission for electricity imports, and later, on November 3 of the same year, began exporting electricity. Currently, Nepal sells 690 megawatts of electricity produced from 16 different projects daily in the medium-term, day-ahead, and real-time markets.
NEA is in the process of obtaining permission to export an additional 400 megawatts of electricity under medium-term agreements, specifically targeting the states of Haryana and Bihar. Furthermore, NEA is preparing to finalize an agreement with Bangladesh to export 40 megawatts of electricity.
