Nepal Exports Rs.13 Billion Worth of Electricity to India in 5 Months
December 22, 2024 | Investopaper
In the first five months of the current fiscal year 2081/82, Nepal exported electricity worth Rs. 13.04 billion to India. The Nepal Electricity Authority (NEA) exported 1.76 billion units of surplus electricity generated during the monsoon months. The average export rate for this electricity was Rs. 7.39 per unit.
The NEA sells the excess power at competitive rates in India’s Energy Exchange (IEX) and through bilateral agreements, primarily to Haryana and Bihar, with transactions conducted in Indian Rupees. As a result, the authority earned approximately IRs. 8.15 billion from these sales.
Executive Director Kulman Ghising noted that flooding and landslides in Ashoj caused significant damage to the Upper Tamakoshi Hydropower Plant, leading to reduced exports in subsequent months. With the onset of winter and decreased river flow, electricity production is expected to decline further, necessitating imports to meet domestic demand.
Currently, electricity exports have ceased while imports have begun due to seasonal changes affecting hydropower generation. The NEA aims to export around Rs. 30 billion worth of electricity this fiscal year; however, recent natural disasters have jeopardized this target.Restoration efforts for the Upper Tamakoshi plant are underway, aiming for completion by Poush 10.
Meanwhile, the NEA has received approval to sell 941 MW of electricity from 28 projects in India’s competitive market. Last fiscal year, Nepal imported Rs. 16.93 billion worth of electricity from India while exporting Rs. 17.06 billion, marking a shift from being a net importer to a net exporter of electricity.
