Nepal has started exporting the total approved 364 MW of electricity to India through its power exchange market.
Buoyed by continuous rainfall this year, the Himalayan nation is exporting surplus electricity to India through its power exchange market for the second consecutive year, according to the Nepal Electricity Authority (NEA), the state-owned power utility body.
The state-owned body is now selling 37.7 MW from Trishuli and Devighat Hydropower Projects, 140 MW from Kaligandaki Hydropower Project, 68 MW from Middle Marsyangdi, 67 MW from Marsyangdi and 51 MW from Likhu-4 developed by the private sector, according to Pradeep Thike, Deputy Managing Director of the NEA.
The NEA started selling electricity generated by Trishuli and Devighat on June 2, with the country’s power plants producing surplus energy due to rising water levels in the rivers where hydropower plants are located.
After the NEA began selling 51 MW power from the Likhu-4 in the Indian market starting Friday, a total of 364 MW, generated by six projects with approval for export from the Indian authorities, is now being sold to India.
This is also the first time that any private sector-generated electricity is being sold to India’s power exchange market.
“Nepal is receiving an average price of Rs 7.14 per unit for Friday,” officials at the NEA informed.
“To be able to sell the entirety of surplus electricity generated for export with approval received from India is a milestone for the country’s electricity trade,” the NEA said in a press statement.
The NEA is making efforts with Indian officials to sell additional electricity in the Indian market in the near future.
Meanwhile, issuing a statement, the Independent Power Producers' Association of Nepal (IPPAN) welcomed the move by the NEA to export surplus electricity generated during the rainy season to India.
Nepal needs to further explore the Indian market for selling additional 636 MW electricity, which will be surplus during rainy season, pointed out IPPAN.
By selling 364 MW electricity to India from June to November end, Nepal will receive Rs 4.78 billion, according to the statement.
(With PTI inputs)