Nepal Electricity Authority (NEA) has proposed Bihar State for a mutual seasonal power exchange arrangement between the two. As per the proposal, NEA will export electricity to Bihar during the rainy season and import electricity from Bihar during winter.

With the completion of 456 MW Upper Tamakosi and other IPP’s, Nepal has surplus electricity higher than demands and there is a risk of wasting electricity in Nepal. NEA has proposed Bihar State Power Holding Company Ltd for mutual electricity exchange to avoid the wastes of electricity in Nepal and fill the shortfall in Bihar’s grid.

Nepal and India have been exchanging electricity since 1971. Managing Director of NEA Kul Man Ghising has said that Nepal will export electricity to Bihar for six wet months and Nepal will import electricity from Bihar during the six months dry season under the proposed mutual electricity arrangements.

NEA MD Ghising said that Nepal can supply 200 MW of electricity to Bihar round the clock during the rainy seasons. Nepal can supply additional electricity from 11 PM to 6 AM. He said that arrangement for the payment will be made on the basis of the volume of sharing of electricity through a mutually accepted appropriate mechanism.

“If these kinds of arrangements are implemented, Nepal can export surplus electricity to India and Nepal can import shortfall of electricity in winter till Nepal require for few months,” said MD Ghising. We have received a positive response from the Indian side. If this kind of mutual power exchange arrangement will be made, it will be a major milestone between the two countries in the history of power exchange. I optimist that we will receive concrete decisions.”

According to MD Ghising, Nepal has 700 units of surplus energy in the remaining three months and there will be 3.79 billion units of surplus electricity during summer. During the winter, Nepal needs to import the same volume of electricity.

Currently, Nepal and Bihar’s grid is connected through 33 kV and 132 kV transmission lines. These infrastructures can exchange up to 371 MW of power. NEA has informed North Bihar Power Distribution Company to supply electricity through Raxaul, Dhalkebar-Mujafarpur grid.