NEA Awaits Approval From India To Export Additional 500 MW Of Electricity

NEA Awaits Approval From India To Export Additional 500 MW Of Electricity

Oct. 27, 2023, 9:24 a.m.

Kul Man Ghising, the Managing Director of the Nepal Electricity Authority (NEA), has announced that Nepal is expecting approval from India in the near future to export an additional 500 MW of unused electricity.

"We are confident that our request will soon be officially approved in India, allowing us to export additional 500 MW electricity,” says Ghising.

The NEA has been granted permission to export 632 MW of electricity to the competitive market, with 522 MW going to NVVN and 110 MW to other.

MD Ghising explains that exporting an extra 500 MW will help prevent significant revenue losses to NEA and the Nepal Government. "Given the strong energy sector ties between Nepal and India, we are optimistic that our plea will be accepted," MD Ghising remarked.

MD ghising.jpg

Due to reduced electricity consumption during Dashain, around 500 MW of electricity generated by hydropower projects is currently going to waste.

The closure of industries and factories coupled with moderate temperatures has led to a decreased internal demand for electricity across Nepal.

Thanks to the absence of rainfall and the steady flow of clean water in rivers and streams, hydropower plants owned by the Nepal Electricity Authority, its subsidiaries, and the private sector continue to generate electricity without interruption.

Currently, the NEA, its subsidiaries, and private sector hydropower plant snare generating approximately, 22000 MW of electricity. Out of this, around 1,000 MW are consumed domestically, with an additional 650 to 700 MW exported to India.

Ghising, the Managing Director of NEA, stated that approximately 500 megawatts of electricity are wasted daily because the produced electricity cannot be consumed domestically, and India has not granted approval for further export.

In light of the reduced domestic demand caused by Dashian, a request letter has been submitted to India's Central Electricity Authority for the export approval of approximately 300 MW of saved electricity. "NEA has not yet secured approval," stated MD Ghising.

As of the day before Phulpati, about 500 MW of clean and sustainable energy has been generated every day but unfortunately go to waste. "NEA is losing crores of rupees each day due to this," said MD Ghising.

The Nepal Electricity Authority has obtained approval to export 632 MW of electricity to the competitive market, with 522 MW going to one market and 110 MW to NVVN.

The NEA is exporting approximately 110 megawatts of electricity to NTPC Vidyut Vrayya Nigam Ltd-NVVN, an Indian company, through competition in IX's day-ahead market and a recent mid-term power agreement. NVVN is selling the electricity in Haryana.

Specifically, 562 MW of electricity is being exported from the Dhalkebar-Muzaffarpur 400 kV international transmission line and 70 MW from the Mahendranagar-Tanakpur 132 kV transmission line. The Nepal Electricity Authority (NEA) exported electricity valued at USD 158 million to India between May and October last year.

The average export price for the three-month period was INR 10.27/kilowatt-hour.

MD Ghising, the authority's Managing Director, confirmed that the NEA ensured uninterrupted power supply to all parts of Nepal during the Dashain festival.

"The electricity system ran smoothly during Dashain, with no interruptions or power outages," stated MD Ghising. "The NEA ensured the preparedness of distribution center heads, power house personnel, and technical staff across the country to prevent any potential power outages during Dashain."

More on Economy

The Latest

Latest Magazine

VOL. 17, No. 20, May.24,2024 (Jestha-11. 2081) Publisher and Editor: Keshab Prasad Poudel Online Register Number: DOI 584/074-75

VOL. 17, No. 19, May.10,2024 (Baishak,28. 2081) Publisher and Editor: Keshab Prasad Poudel Online Register Number: DOI 584/074-75

VOL. 17, No. 18, April.26,2024 (Baishak,14. 2081) Publisher and Editor: Keshab Prasad Poudel Online Register Number: DOI 584/074-75

VOL. 17, No. 17, April.12,2024 (Chaitra,30. 2080) Publisher and Editor: Keshab Prasad Poudel Online Register Number: DOI 584/074-75