Hydropower Milestone: Nepal's Electricity Exports To India Thrive with Increasing Water Resources

The Nepal Electricity Authority (NEA) has resumed the export of electricity to India, with a daily export of 300 megawatts. This increase in electricity export is attributed to the rise in water levels in rivers due to recent rainfall. NEA spokesperson Suresh Bahadur Bhattarai stated that electricity export is expected to continue throughout the month of June, and a larger quantity of electricity will likely be exported from June to November.

Bhattarai mentioned that the water level in rivers has risen, ensuring regular electricity export. Currently, the authority is exporting around 7-8 thousand megawatt hours of electricity daily. The electricity is sold to India at an average price of Rs. 8.38 per unit or 5.24 Indian Rupees.

To meet the demand, Nepal is importing 1,000 megawatt hours of electricity from India. The electricity trade between Nepal and India takes place through the Indian Energy Exchange Limited (IEX), where electricity is traded in 15-minute intervals throughout the day.

The load on NEA's system has increased recently, particularly in the Terai region, due to the hot weather, resulting in a peak load of up to 1,900 megawatts. This indicates an increase in electricity consumption within the country. However, the authority is not satisfied with the unsold electricity in India.

India has granted permission to export 452 megawatts of Barauni thermal power. The NEA has proposed an additional 1,200 megawatts of electricity export, including the Upper Tamakoshi Hydropower Project, which has a capacity of 456 megawatts.

The authority anticipates that Nepal will become a net exporter of electricity to India within the fiscal year 2079/80 if the quantity of exports surpasses imports.

Executive Director Kul Man Ghising explained that the projection was impacted by a 30% decrease in electricity production due to insufficient snowfall and rainfall this year. The volume of exports in June will provide clarity on the situation.

The authority intends to seek permission from India to export more electricity and plans to sell a significant quantity of electricity to India this year. With a long-term electricity trade agreement in place, the authority is confident in immediate electricity export to India.

The installed capacity of hydropower projects in Nepal currently exceeds 2,700 megawatts, making it possible to produce a similar amount of electricity during the rainy season. However, exporting all the unconsumed electricity remains a challenge.

If the authority's plan fails, Nepal may have to waste a substantial amount of electricity during the rainy season. In addition to the loss of potential profit, the authority could face compensation payments if it cannot purchase electricity from private projects.

Last year, the authority wasted up to 600 megawatts of electricity per day due to India's failure to purchase electricity from proposed projects, resulting in significant financial losses.

To prevent a similar situation this year, the NEA is seeking permission from India to export more electricity. Unconsumed electricity in Nepal is currently being sold in India's Day Ahead market, where it is placed in the system the day before and sold based on supply and demand dynamics at the determined rate.

In gathering information for this article, insights were gathered from interviews featuring NEA spokesperson Suresh Bahadur Bhattarai and Executive Director Kul Man Ghising, which were conducted on a different media platform.