Export of electricity worth NPR 12.71 billion in 4 months

KATHMANDU, NOVEMBER 20: During the first four months of the current fiscal year 2024/25, Nepal exported electricity worth NPR 12.71 billion to India. The Nepal Electricity Authority (NEA) exported 1.66 billion units of surplus electricity, generated during the rainy season consisting the months of Shrawan (mid-July to mid-August), Bhadra (mid-August to mid-September), Ashwin (mid-September to mid-October), and Kartik (mid-October to mid-November). The average price of the electricity exported during this period was NPR 7.63 per unit.

The NEA has been selling surplus electricity to India through competitive pricing on the Indian Energy Exchange (IEX), both in the day-ahead and real-time markets. Additionally, bilateral medium-term power purchase agreements is already signed with Indian states like Haryana and Bihar. Using India’s transmission infrastructure, Nepal has also begun exporting electricity to Bangladesh. This electricity trade with India is conducted in Indian Rupees (INR), allowing the NEA to generate revenue in the same currency.

Kulman Ghising, the NEA’s Managing Director, explained that the floods and landslides that occurred in Ashwin caused damage to hydropower plants and transmission lines, halting electricity production and affecting exports.

“The 456 MW Upper Tamakoshi Hydropower Project, the largest operational project, was impacted by landslides, halting electricity production. Other smaller projects also suffered, resulting in lower production. Moreover, floods in the Mai River damaged the Kabeli Corridor transmission line, causing a loss of around 200 MW of electricity production, which affected exports in Ashwin and Kartik,” Ghising stated. “This has put the target of approximately NPR 30 billion in electricity exports for this fiscal year at risk.”

The reconstruction work at the Upper Tamakoshi project is progressing rapidly, and the Kabeli Corridor transmission line has been restored and is operational. However, with the onset of winter, the water flow in rivers and streams will decrease, leading to reduced electricity generation from hydropower projects. Consequently, electricity production will primarily meet domestic demand, and exports will gradually decline. During some winter months, Nepal will need to import electricity.

In Shrawan, electricity exports amounted to NPR 4.14 billion, with 495.6 million units exported at an average rate of NPR 8.36 per unit. In Bhadra, electricity exports totalled NPR 3.67 billion, with 559.4 million units exported at an average rate of NPR 6.58 per unit.

 

 

 

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