Nepal Begins Exporting 300 MW of Electricity to India as Monsoon Season Commences
In a significant development, Nepal has commenced the export of its generated electricity to India as the monsoon season sets in, leading to an increase in hydroelectricity production.
The Nepal Electricity Authority (NEA) reported that over the past five days, more than 300 MW of electricity has been exported to India on a daily basis. Suresh Bahadur Bhattarai, the NEA spokesperson, stated that the electricity is being sold at a rate of Rs 8.38 (IC 5.24) per unit.
The recent rise in rainfall has played a pivotal role in enabling the NEA to export electricity to its neighboring country. Bhattarai added that electricity exports are expected to continue until mid-November.
Simultaneously, there has been a surge in electricity consumption within Nepal. NEA records indicate a daily peak load of up to 1,900 MW, primarily due to increased usage of electrical appliances in response to rising temperatures. To meet the growing demand, the NEA has been importing 1,000 MWh of electricity from India on a daily basis.
Nepal currently has an installed capacity of 2,700 MW for electricity production, with full-fledged production achieved during the rainy season. With a surplus supply, it becomes imperative for the country to export its production in order to avoid wastage.
However, Nepal’s ability to sell electricity in the Indian market is currently limited to 452 MW, as stipulated by India. Last year, Nepal faced a loss of approximately 500 MW of electricity during the peak season due to this constraint imposed by its neighboring country. Despite Nepal’s request to sell up to 1,200 MW, India has not yet granted approval.
Since June 2, 2022, the state-owned power utility has been selling excess monsoon electricity through the day-ahead market of the Indian Energy Exchange Limited (IEX). Last year, Nepal earned revenue of Rs 11 billion by exporting electricity to India.
This development not only strengthens the energy partnership between Nepal and India but also underscores the potential for further collaboration in the future. The export of electricity during the monsoon season serves as a boon for Nepal, utilizing its abundant hydroelectric resources and generating revenue in the process.
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