Kathmandu, Oct. 29: India has made arrangements that if electricity produced from hydropower projects outside its country is purchased and consumed, it will also be counted as renewable energy.

The Ministry of Power of India has published a notice in the Gazette on October 20 and has set the minimum consumption share of renewable energy for the years 2024-25 to 2029-30. 

In the documents the consumption shares of wind, hydropower, distributed and other renewable energy is specified.

By setting the minimum consumption share of hydropower purchase obligation (HPO) for licensed distribution companies and buyers in India, it has been arranged that electricity purchased from hydropower projects in neighbouring countries that have been approved for sale of electricity in India by the central government can also be included in the renewable energy consumption share.

Earlier, such HPO arrangement was only for electricity purchased from hydropower projects in India.

India has to increase its share of renewable energy consumption to 29.91 per cent by 2024-25 and 43.33 per cent by 2029-30.

Out of this, the share of electricity consumption generated from hydropower should be increased to 0.38 per cent in 2024-25 and 1.33 per cent by 2029-30. 

For this purpose, it has been arranged that only the electricity produced from the hydropower projects that have been brought into operation after March 31, 2024 will be counted. 

The provision has been made for distribution companies and electricity purchasers who must pay the specified HPO and those who do not pay will be fined.

There is a provision that the electricity purchased from hydropower projects that were brought into operation before April 1, 2024 can also be counted for the consumption portion specified for other renewable energy.

Managing Director of Nepal Electricity Authority Kul Man Ghising said that if the new system of compulsory component electricity generated from hydropower purchase is implemented in practice, it will benefit Nepal, India and Bhutan.

“We have been asking India for a long time to arrange for the inclusion of electricity purchased from hydropower projects outside its country in the HPO, now it has been included. This will make it easier for India’s electricity distribution companies and buyers to purchase electricity from hydropower projects,” said Ghising. “If this arrangement is implemented practically, Nepal’s hydropower will get a good market in India.”

The Authority has been exporting surplus electricity to India during the rainy season.

The NEA has been selling around 110 MW of electricity to Indian company NTPC Vidyut Vyapar Nigam Ltd. (NVVN) through competition in IEX day-ahead market and recently under a mid-term power agreement. 

The NVVN is selling the electricity in the state of Haryana.

The Central Electricity Authority of India has also allowed the sale of about 44 MW of electricity in the real time market out of the 522 MW approved for export to the competitive market in the first phase.  The NEA has received approval to export 632 MW of electricity to the competitive market with 522 MW and 110 MW to NVVN.

500 MW electricity wasted daily during Dashain About 500 megawatts of electricity generated by hydropower projects is being wasted during Dashain due to the reduction in domestic consumption of electricity in the country.

Due to the closure of industries and factories that consume more electricity during Dashain, and because the cold has not started in Kathmandu and the heat has ended in Tarai, the demand for electricity has decreased inside the country, said the NEA.

However, when the rains are over and clean water flows in the rivers and streams, at this time electricity is produced without interruption by the hydropower projects owned by the Nepal Electricity Authority, its subsidiaries and the private sector.

About 2,200 megawatts of electricity are currently being produced by the Authority, its subsidiaries and private sector hydropower projects. Out of that, about 1,000 MW is being consumed within the country, while about 650 to 700 MW of electricity is being exported to India. 

Ghising said that since the produced electricity could not be consumed within the country and could not get approval from India for further export, now there is a dire situation of wasting around 500 megawatts of electricity on a daily basis.

He said that NEA has provided uninterrupted electricity supply during Dashain this year. 

He said that this year too, there was uninterrupted power supply in Dashain in some places in the hilly areas as in previous years. 

“The electricity system ran smoothly during Dashain, there were no interruptions and the electricity supply was not cut,” Ghising said.