Kathmandu, Nov 20: In the first quarter of the current fy 2024/25, Nepal has exported electricity worth NRs 12.72 billion to India. According to Nepal Electricity Authority (NEA), the NEA exported a total of 1.66 billion units. The average rate of electricity exported to India over the past four months was NRs 7.63 per unit.
The NEA has been selling the excess electricity to India at competitive rates through the Indian Energy Exchange (IEX), including in the “Day-Ahead” and “Real-Time Markets,” as well as under bilateral medium-term power sale agreements to the states of Haryana and Bihar State of India. Using India’s transmission infrastructure, electricity export to Bangladesh has also started. The electricity trade with India is conducted in Indian Rupees (INR).
NEA’s Executive Director, Kulman Ghising, mentioned that the floods and landslides in the month of Ashoj (September) caused significant damage to the operational hydropower plants and transmission lines, affecting electricity production and exports. The largest hydropower project, the 456 MW Upper Tamakoshi, was particularly impacted by a landslide, leading to its shutdown. Several smaller projects also suffered damage, resulting in halted electricity production.
Additionally, floods in the Mai Khola region caused damage to the Kabeli Corridor transmission line, leading to a loss of approximately 200 MW of electricity production from the connected projects. This disruption impacted the electricity exports in the Nepali months of Ashoj and Kartik, and the target of NRs 30 billion in electricity exports for the fiscal year is expected to be affected.
According to the NEA, reconstruction of the Upper Tamakoshi project is ongoing, and the Kabeli Corridor transmission line has been repaired and is now operational. As winter sets in and water flow in rivers decreases, hydropower production will decline, meaning that domestic production will only meet internal demand. Therefore, electricity exports will gradually decrease, and Nepal may need to import electricity during certain months of the winter.
To date, the NEA has been authorized to sell 941 MW of electricity generated by 28 projects to the Indian market through competitive markets and medium-term agreements. Last year, Nepal imported electricity worth NRs 16.93 billion from India, while it exported electricity worth NRs 17.06 billion during the same period. Notably, Nepal exported more electricity than it imported, becoming a net exporter of electricity. #nepal #export #energy
