India Permits Nepal To Export 44 MW Electricity In Real Time Market

India Permits Nepal To Export 44 MW Electricity In Real Time Market

Oct. 1, 2023, 7:56 a.m.

Nepal is now permitted to sell electricity in the Real Time Market of India's Energy Exchange (IX), with 44 megawatts to be exported. This marks the first time NEA has received such permission. The Nepal Electricity Authority (NEA), which previously sold electricity by bidding one day ahead, can now sell electricity by bidding one and a half hours ahead in India's competitive energy market.

The Central Electricity Authority, under the Ministry of Electricity of India, has granted clearance for the NEA to sell electricity in the real-time market on Saturdays. Henceforth, based on production estimates, the NEA can conduct electricity transactions in the Indian market by submitting bids 15 hours ahead of the trade.

On August 31st, the Indian Ministry of Electricity amended the procedures for approval and facilitation of cross-border electricity import/export and invited authorized bodies from neighboring countries to participate in the real-time market.

In the initial stage, the Central Electricity Authority of India has authorized the sale of about 44 MW of electricity produced by the Lower Modi 19.4 MW and Kabeli B1 24.25 MW hydroelectric power plants in the real-time market.

As of now, the electricity from both these plants is being sold in the day-ahead market. The authorization granted to the day-ahead market will expire on Saturday. Prabal Adhikari, the director of the NEA's electricity trade department, reported that two projects have been approved for renewal in the day-ahead market and are now authorized for sale in both the day-ahead and real-time markets.

The director noted that the two plants can now sell their electricity in advance and as needed in the real-time market.

Previously, they had to wait a full day to import or export electricity from the competitive market, but now they are able to conduct business by bidding 15 hours prior. This advancement allows for purchasing and selling of electricity even in the event of unexpected interruptions or increases in production. "Participating solely in the day-ahead market, our entry into the real-time market is a novel experience and milestone," remarked Adhikary. He exclaimed how it contributes to the facilitation of electricity management between the two countries. Additionally, a new dimension is added to the electricity trade.

The NEA has been exporting electricity to India after consumption within the country during the rainy season. The authority has been selling 110 MW of electricity to the Indian company NTPC Vidyut Vyapar Nigam Limited (NVVN) through competition in the day-ahead market of IX as per the mid-term power agreement for quite some time now. NVVN is further selling this power in the state of Haryana.

Additionally, the NEA has gained approval to export 522 MW to the competitive market and 110 MW to the state of Haryana through NVVN, making a total of 632 MW. Specifically, 562 MW of electricity is being exported through the Dhalkebar-Muzaffarpur 400 kV international transmission line, and 70 MW of electricity is being exported through the Mahendranagar-Tanakpur 132 kV transmission line. During the past two months, the NEA has exported electricity worth $73.26 million to India.

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