Nepal exports Rs 12.72 bn worth of electricity to India in Q1
Kathmandu: Nepal exported electricity worth Rs 12.72 billion to India during the first quarter of the current fiscal year, according to the Nepal Electricity Authority (NEA). The surplus electricity, amounting to over 1.66 billion units generated during the rainy season, was sold at an average rate of Rs 7.63 per unit.
The NEA exports power to the Indian states of Haryana and Bihar through the Day Ahead and Real Time Market of the Indian Energy Exchange (IEX), leveraging a competitive pricing mechanism under a bilateral mid-term electricity sale agreement. Additionally, Nepal has commenced power supply to Bangladesh using India’s energy infrastructure.
However, NEA Managing Director Kulman Ghising noted that exports have been impacted by natural disasters. Landslides triggered by incessant rains on September 27-28 caused significant damage to hydropower plants and transmission lines, including the 456-megawatt Upper Tamakoshi project, which remains non-operational.
Floods from the Mai River also damaged the Kabeli Corridor Transmission Line, suspending around 200 megawatts of electricity from projects connected to the line. This disruption has affected exports over the past two months and poses a challenge to the government’s annual target of earning Rs 30 billion from electricity exports in the current fiscal year.
Despite these setbacks, Nepal’s increasing engagement in cross-border electricity trade underscores its potential as a key player in the regional energy market. The NEA continues to prioritize the restoration of damaged infrastructure to meet export targets and enhance energy trade in the region.