Kathmandu, May 26: Managing Director of the Nepal Electricity Authority (NEA), Hitendra Dev Shakya, has revealed that Nepal is currently selling electricity to India at INR 4 per unit during nighttime hours.
Speaking to the media on Sunday evening after assessing the power supply issues, consumer complaints, and potential technical difficulties in various areas under the No Light Branch in Kuleshwar, Shakya provided detailed insights into Nepal’s electricity trade. He explained that electricity is currently cheaper in India during the daytime, with the cost of consumption dropping to as low as 50 paisa per megawatt-hour (MWh), which translates to less than one paisa per unit. During such hours, Nepal imports electricity from India to conserve water in domestic hydropower plants such as Kulekhani, Marsyangdi, Kaligandaki, and Upper Tamakoshi.
He further elaborated that Nepal stores water during the day and uses it to generate electricity during peak demand hours in the evening, especially after 9 PM, and then exports that electricity to India at higher rates. On Saturday alone, Nepal imported 2,500 MWh of electricity and exported 1,300 MWh. Although the volume of exported units was lower, the price difference resulted in a profit.
Shakya stated, “Electricity has been cheap in India during the daytime for the past few days. This has also been reported in several Indian media outlets. With the cost dropping to around 50 paisa per megawatt-hour—less than a paisa per unit—we’ve been importing as much electricity as possible during these hours and storing water in Kulekhani, Marsyangdi, Kaligandaki, and Tamakoshi. Instead, we run our hydropower plants in the evening during peak load periods. Even during these peak times, we don’t need to import electricity from India, as water flow in our rivers is abundant. After 9 PM, we sell electricity generated from stored water at INR 4 per unit. This means we are buying power for as little as one to one-and-a-half paisa and selling it for INR 4. Nighttime prices fluctuate between INR 2 and INR 2.5, but overall, we’re making a profit. On Saturday, for example, we bought 2,500 MWh and sold 1,300 MWh. Despite selling fewer units, we made a profit due to the price margin. This trend will likely continue for a few more days.”
He added that as river water volumes increase and exceed storage capacity, Nepal will no longer need to import electricity during the day and can even export surplus power at low daytime prices. He also mentioned that starting from June 15, under a five-year multi-year agreement, Nepal will begin round-the-clock electricity exports to India at fixed rates, independent of market fluctuations.
Shakya clarified that there have been no major power supply problems in recent days, except for last Wednesday and Thursday. He emphasized that rumors and misinformation are being spread that do not reflect the ground reality. #nepal #electricity #NEA
