Electricity trade in the Indian competitive market, which Nepal started since last year, has moved forward more effectively from this year. At a time when the current foreign exchange reserves are strained, NEA has earned foreign exchange by selling surplus monsoon electricity after consumption in the country.
The export of electricity to India from Nepal is increasing day by day.
The Nepal Electricity Authority (NEA) has earned more than NRs. 3.5 Arba from exporting electricity to India in around 2 months after deducting all expenses.
The NEA had begun selling surplus power to the Indian Energy Exchange (IEX) on June 2.
The first export of electricity had begun from the 24-MW Trishuli and 15-MW Devighat hydropower projects. Later on from June 10, NEA started to export 364 MW at competitive rates.
The NEA sold 177,191,000 units of electricity at an average rate of Rs 9.67 per unit, earning Rs 1.72 billion after all charges in June, according to the NEA.
Managing Director of NEA Kulman Ghising says, “Looking at the amount of electricity exported and the price obtained through it, the electricity trade with India has been seen more effective. This will help reduce some of Nepal’s trade deficit with India and contribute to maintaining the country’s balance of payments.”
India had granted approval to NEA to sell 325 MW of electricity to the Indian market on April 6.
NEA has received approval to sell 140 MW of electricity from the NEA-owned 144MW Kaligandaki A, 68 MW from the 70MW Middle Marsyangdi, and 67 MW from the 69MW Marsyangdi, 51 MW from the 52.4MW Likhu-4 hydropower project.
NTPC Vidyut Vyapar Nigam Ltd. (NVVN) is the liaison body for electricity trade with Nepal.
NVVN sends daily transaction details to NEA every day at 6 pm.