NEA generates RS 13 billion revenue from power sales to India

KATHMANDU: In the first five months of the current fiscal year 2081/82 (BS), electricity worth NPR 13.04 billion was exported to India. The Nepal Electricity Authority (NEA) exported 1.76 billion units of surplus electricity generated during the monsoon season from the months of Shrawan, Bhadra, Ashwin, Kartik, and Mangsir. The average export price of electricity to India during this period was NPR 7.39 per unit.

The NEA sold surplus electricity in India through competitive rates in the Indian Energy Exchange (IEX)’s Day-Ahead and Real-Time markets, as well as under bilateral medium-term power purchase agreements with the states of Haryana and Bihar. The electricity trade with India is conducted in Indian Rupees (INR), generating a revenue of INR 8.15 billion for the NEA.

The highest electricity exports occurred in Shrawan, amounting to NPR 4.15 billion, while the lowest was in Mangsir, at just NPR 281.4 million. In other months, exports totaled NPR 3.68 billion in Bhadra, NPR 3.07 billion in Ashwin, and NPR 1.87 billion in Kartik.

NEA’s Executive Director Kulman Ghising explained that power exports were significantly impacted when production at the 456 MW Upper Tamakoshi Hydropower Plant was halted due to damage caused by floods and landslides in Ashwin.

Ghising further highlighted that the closure of the Upper Tamakoshi plant led to reduced exports in subsequent months. With the onset of the dry season, hydropower generation has declined, forcing Nepal to begin electricity imports earlier than last year.

Currently, electricity exports have ceased, and imports have commenced. As water flow in rivers and streams decreases during the winter months, hydropower production will fall short of meeting domestic demand, necessitating electricity imports for a few months. Exports are expected to resume once river flows increase with the arrival of the monsoon season. Notably, 40 MW of electricity exports to Bangladesh through India have also begun this year.

The NEA has set a target of exporting electricity worth NPR 30 billion in the current fiscal year. However, the goal may be affected by damages to hydropower plants and transmission lines caused by floods and landslides. The Upper Tamakoshi plant, along with other smaller hydropower projects and the Kabeli Corridor transmission line, suffered significant damage. Floods in the Mai River disrupted the Kabeli Corridor, halting around 200 MW of connected hydropower production, which impacted electricity exports in Ashwin and Kartik.

Repair work on the Upper Tamakoshi plant is ongoing, with plans to resume operations by December 25, and the Kabeli Corridor transmission line has already been restored. However, as winter progresses and water flow in rivers and streams decreases, hydropower production will primarily cater to domestic demand, leading to a gradual reduction in electricity exports.

To date, NEA has received approval to sell 941 MW of electricity produced by 28 hydropower projects in the Indian market under competitive and medium-term sales agreements.

In the previous 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 a net importer to a net exporter of electricity.