KATHMANDU: The Nepal Electricity Authority (NEA) has successfully exported power worth Rs 15.24 billion to India during the monsoon season this year.
According to the agreement, NEA commenced surplus electricity exports to India from June 1, 2023, and has sold over 1.7 billion units, amounting to Rs 15.4 billion, between June 1 and December 6, 2023.
On a daily basis, a maximum of 700 megawatts of power was sold at Rs 8.77 per unit. Detailed data reveals that over Rs 13.2 billion worth of electricity was sold from the Nepali month of Shrawan (July-August) to Mangsir 20 (December 6). During this period, more than 1.47 billion units were sold at Rs 8.96 per unit.
However, due to a reduction in electricity production during the dry season, resulting from decreased water flow in rivers, there is an increased demand for internal consumption. As a result, the import of power from the Indian market has commenced, leading to the cessation of exports from tonight.
NEA Executive Director Kulman Ghising explained that the import of electricity from India has become necessary as domestic production is insufficient to meet the rising demand. The current daily demand for power across the country is a maximum of 1700 megawatts.
Ghising stated, “Now, production and demand are at an equal level. We are operating our semi-reservoir-based power houses during peak hours in the evening and morning, filling during noon and night.”
He further added, “The import of electricity during peak hours is costlier, and it is relatively cheap during noon and night. So, electricity will be purchased outside the peak hours.”
Despite increased imports in the Nepali months of Chaitra (March-April) and Baisakh (April-May), Nepal is expected to be a net exporter of electricity this year. Export activities are projected to resume in the second week of the upcoming Baisakh (last week of April, 2024). With the addition of around 900 megawatts of electricity to the national grid this year and ongoing infrastructure improvements, Nepal anticipates exporting power worth approximately Rs 25 billion next year. This positive trajectory aims to create an environment where electricity worth around Rs 100 billion will be exported in the next five years.
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