,Kathmandu, Aug. 28: Electricity worth Rs. 4.19 billion has been exported to India in the first month (mid-July 2024 to mid-August 2024) of the current fiscal year 2024/25.

According to Nepal Electricity Authority (NEA), it has earned about Rs. 4.19 billion from the export of surplus electricity in the month of Shrawan. The NEA exported electricity worth Rs. 131 million on daily basis in the month of Shrawan.

The average rate of electricity exported in the month of Shrawan is Rs. 8.51 per unit.

Managing Director of NEA Kul Man Ghising said that the situation of load shedding for 8-9 hours a day during the rainy season and 18 hours during the dry season until eight years ago has ended, and more than 700 MW of surplus electricity is exported daily during the rainy season at present.

He said that although there are occasional power outages due to natural and technical reasons, now there is no need for power cuts due to not being able to supply electricity according to demand.

Ghising said, “Our first priority is to increase electricity consumption within the country. To increase consumption, transmission and distribution system improvement and expansion works have been implemented as a campaign. The surplus electricity will be exported to neighbouring countries India and Bangladesh.”

He said that the export of electricity to India during the rainy season and significant foreign exchange earnings are contributing positively to the country’s foreign exchange reserves and reducing the trade deficit between Nepal and India.

“Although we have to import electricity for a few more months in winter, the amount of import will gradually decrease. We have become a net exporter from net importer by selling the surplus electricity from last year in the Indian market,” he said.

The Authority is selling the surplus electricity on the day-ahead and real-time market of Indian Energy Exchange (IEX) at a competitive rate and according to the bilateral medium-term electricity sale agreement to the Indian company NTPC Vidyut Vyapar Nigam Ltd (NVVN). The NVVN is selling the electricity in the state of Haryana.

The Authority has so far received approval to sell 941 MW of electricity produced by 28 projects in the Indian market in accordance with the competitive market and mid-term electricity sales agreement. 

A few days ago, in accordance with the bilateral agreement, Nepal received approval to export an additional 251 megawatts of electricity to the Indian states of Bihar and Haryana. 

Out of this, 125.89 MW generated from two more hydropower projects will be sold to Haryana state through NVVN. At present, 109.61 megawatts of electricity produced by two projects is being sold in the state of Haryana.

About 125 MW of electricity generated from 10 hydropower projects will be exported to the state of Bihar through PTC, India as per the mid-term agreement. For the first time, the export of electricity to Bihar and Haryana will be started soon after completing the technical process, said Ghising.

At present, 580.89 MW of electricity produced by 14 projects is being sold at IEX at a competitive rate. 

Since the export of electricity in the amount approved a few days ago has not started, currently 690.50 MW of electricity is being exported to IEX and Haryana on a daily basis. About 10 per cent more electricity than the approved quantity can be exported. 

Therefore, more than 700 megawatts of electricity is currently being exported daily, he said. In the last fiscal year, Nepal imported electricity worth Rs. 16.93 billion while exported electricity worth Rs. 17.6 billion.