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HomeNewsNepal Starts Daily Export of 400 MW Electricity to India

Nepal Starts Daily Export of 400 MW Electricity to India

Kathmandu: Due to rising water flow in the rivers augmenting electricity generation, Nepal has began exporting excess electricity to India. Since Monday night, the NEA has been supplying 400 MW of electricity daily to the Indian Energy Exchange (IX) market.

Kulman Ghising, Executive Director of the NEA, said, “We have been exporting 400 MW electricity to India since May 14.” He also pointed out that the plan is to export around 1200 MW of excess electricity this year while meeting the domestic demand through the competitive market and demand supply bilateral agreement.

The NEA has forwarded a list of projects for export approval to the Central Electricity Authority of India. An agreement has been made with Power Trade Company to sell approximately 200 MW to Bihar and about 400 MW to Haryana through NTPC Electricity Trading Corporation (NVVN).

At the moment, the Central Electricity Authority of India has granted approval for exporting 656 MW from 15 hydropower projects in Nepal to the competitive market. These rivers include: Trishuli, Devighat, Marsyangdi, Kaligandaki-A and many more. Out of this, 110 MW will be supplied to NVVN for five years from June-October every year mainly for Haryana consumption.

Currently, 586 MW is transmitted through the Dhalkebar-Muzaffarpur 400 KV ITL and 70 MW through the Mahendranager-Tanakpur 132 KV Transmission Line. The NEA has also been authorized to enter the real time electricity trading market.

However, There has been little problem in power supply in Birgunj due to some improvements on the 132 kV double circuit transmission line linking Piluwa substation in Bara to Parwanipur substation. Ghising said, “The process of replacing the conductor will take 2-3 days and the problem will be solved.”

In the current financial year Nepal has imported electricity up to 15. 21 billion rupees from India for domestic consumption of electricity and exported electricity worth 13. 47 billion rupees. The average cost per unit of exported electricity is 9 rupees 2 paisa, while imported electricity costs 8 rupees 38 paisa per unit. Nevertheless, according to the NEA’s data, the country is predicting to become a net exporter by June.

The NEA’s total connected electricity capacity has reached 3,141 megawatts, including contributions from private hydropower projects, NEA’s own projects, its subsidiaries, and private solar energy.

Ghising noted that electricity generation has ramped up to full capacity from key projects like Kaligandaki A, Marsyangdi, and Modi, among others, pushing domestic production to 1,600 megawatts against a peak load of 2,050 megawatts.

In recent years, domestic electricity consumption has significantly increased, reaching 4 to 4.5 million units daily, compared to one and a half million units seven to eight years ago.

With these developments, Nepal is poised to transition from an electricity importer to a net exporter, marking a significant milestone in the country’s energy sector.

Also Read: https://whatthenepal.com/2024/05/30/nepal-targets-1-6-million-tourists-for-fiscal-year-2081-82/

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