Nepal Earns Rs 8.15 Billion from Electricity Exports to India in 5 Months

24 Dec 2024 CW Team

NEA spokesperson Chandan Ghosh mentioned that Nepal has been exporting surplus electricity to India during the rainy season for the past few years.

The average rate for electricity exported to India in the five months was Nepalese Rs 7.39 (approximately Rs 4.63) per unit.

The authority has been selling the surplus electricity at competitive rates in the day-ahead and real-time markets of the Indian Energy Exchange and to the states of Haryana and Bihar, as per the bilateral medium-term power sales agreement. Consequently, the authority earned Rs 8.15 billion from the electricity sales during the review period, with the trading done in Indian currency.

However, with the arrival of winter and the dry season, Nepal has stopped exporting electricity and begun importing it from India, Ghosh stated.

Nepal is currently importing 300 MW of electricity from India to meet its domestic demand. The majority of powerhouses in Nepal are of the run-of-river type, which face seasonal fluctuations.

Although Nepal had planned to export more electricity to India this year, the export plans were hindered due to damage caused to the 456 MW Upper Tamakoshi Hydropower Project by floods and landslides in September, as reported by NEA officials. Ghosh noted that once the water flow in the rivers increases, electricity exports will resume. Additionally, Nepal has started exporting 40 MW of electricity to Bangladesh via the Indian transmission line this year.

So far, the NEA has received approval from India to sell 941 MW of electricity generated from 28 projects in the Indian market under competitive market and medium-term power sales agreements.

The Nepal Electricity Authority (NEA) has exported electricity worth Nepalese rupees 13 billion (approximately INR 8.15 billion) during the first five months of the current fiscal year. According to NEA officials, about 1.76 billion units of electricity, valued at Nepalese Rs 13.04 billion, were exported to India from mid-July to mid-December of the fiscal year 2024-25. NEA spokesperson Chandan Ghosh mentioned that Nepal has been exporting surplus electricity to India during the rainy season for the past few years. The average rate for electricity exported to India in the five months was Nepalese Rs 7.39 (approximately Rs 4.63) per unit. The authority has been selling the surplus electricity at competitive rates in the day-ahead and real-time markets of the Indian Energy Exchange and to the states of Haryana and Bihar, as per the bilateral medium-term power sales agreement. Consequently, the authority earned Rs 8.15 billion from the electricity sales during the review period, with the trading done in Indian currency. However, with the arrival of winter and the dry season, Nepal has stopped exporting electricity and begun importing it from India, Ghosh stated. Nepal is currently importing 300 MW of electricity from India to meet its domestic demand. The majority of powerhouses in Nepal are of the run-of-river type, which face seasonal fluctuations. Although Nepal had planned to export more electricity to India this year, the export plans were hindered due to damage caused to the 456 MW Upper Tamakoshi Hydropower Project by floods and landslides in September, as reported by NEA officials. Ghosh noted that once the water flow in the rivers increases, electricity exports will resume. Additionally, Nepal has started exporting 40 MW of electricity to Bangladesh via the Indian transmission line this year. So far, the NEA has received approval from India to sell 941 MW of electricity generated from 28 projects in the Indian market under competitive market and medium-term power sales agreements.

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