KATHMANDU: Nepal exported electricity worth NPR 12.71 billion to India during the first quadrimester of the current fiscal year. The Nepal Electricity Authority (NEA) reported that 1.66 billion units of surplus electricity generated during the monsoon season were exported to India. The average export price for electricity during this period was NPR 7.63 per unit.
NEA sold surplus electricity in India through competitive pricing at the Indian Energy Exchange (IEX) under the ‘Day-Ahead’ and ‘Real-Time Market’ mechanisms, as well as via bilateral medium-term power purchase agreements with the Indian states of Haryana and Bihar.
Additionally, electricity exports to Bangladesh have commenced using India’s transmission infrastructure. The power trade with India is conducted in Indian Rupees (INR), enabling NEA to generate revenue in INR.
Impact of Floods and Landslides on Electricity Exports
NEA Executive Director Kulman Ghising stated that floods and landslides in October disrupted operations at several hydropower plants and transmission lines, leading to reduced electricity exports.
“The largest hydropower project in operation, the 456 MW Upper Tamakoshi, remains offline after landslides damaged its infrastructure. Similarly, smaller projects also suffered damages, hindering electricity production,” said Ghising. He further explained, “Flooding in the Mai River damaged the Kabeli Corridor transmission line, halting the production of around 200 MW of electricity from various projects connected to this line. As a result, electricity exports during October and November were affected, jeopardizing the target of exporting NPR 30 billion worth of electricity this fiscal year.”
Reconstruction and Challenges Ahead
According to NEA, the reconstruction of the Upper Tamakoshi project is underway, and the Kabeli Corridor transmission line has been restored and is operational. However, with the onset of winter, river and stream flows are expected to decrease, reducing hydropower production. Electricity generation will likely only meet domestic demand, leading to a gradual decline in exports. During some winter months, Nepal may even need to import electricity.
NEA currently has approval to export 941 MW of electricity from 28 projects to the Indian market under competitive bidding and medium-term agreements.
Nepal’s Transition from Net Importer to Exporter
In the last fiscal year, Nepal imported electricity worth NPR 16.93 billion from India while exporting electricity worth NPR 17.06 billion. By exporting NPR 130 million more electricity than it imported, Nepal transitioned from being a net electricity importer to a net exporter.