Nepal Exports Electricity Worth NPR 13.04 Billion to India in the First Five Months of FY 2081/82

Nepal Electricity Authority (NEA) exported surplus electricity worth NPR 13.04 billion to India during the first five months of the current fiscal year, 2081/82. The export consisted of 1.76 billion units of surplus electricity generated during the monsoon season, consumed domestically before exporting to India.

The average export price of electricity during these four months was NPR 7.39 per unit. NEA sold the electricity in the Indian Energy Exchange (IEX) through Day-Ahead and Real-Time Markets and under bilateral medium-term contracts with Haryana and Bihar states. The electricity trade with India is conducted in Indian Rupees (INR), earning NEA INR 8.15 billion in revenue.

Monthly Export Highlights

• Sawan: NPR 4.15 billion (highest)

• Bhadra: NPR 3.68 billion

• Ashoj: NPR 3.07 billion

• Kartik: NPR 1.87 billion

• Mangsir: NPR 281.4 million (lowest)

Impact of Natural Disasters

The export figures were significantly impacted by landslides and floods, particularly the closure of the 456 MW Upper Tamakoshi Hydropower Project. This reduced production in subsequent months, forcing NEA to start electricity imports earlier this year due to decreased domestic production.

NEA's Executive Director, Kulman Ghising, highlighted that reduced water flow during the dry season further impacts production, necessitating electricity imports to meet domestic demand.

Export to Bangladesh Initiated

This fiscal year also marked the beginning of electricity exports to Bangladesh, with 40 MW being exported via India. NEA aims to export electricity worth NPR 30 billion this year, though the target faces challenges due to flood-induced damages to hydropower plants and transmission lines.

Restoration Efforts

Repairs on the Upper Tamakoshi project are ongoing and expected to complete by Poush 10, while the Kabeli Corridor transmission line has already been restored. NEA has permission to export 941 MW from 28 hydropower projects to India under competitive and medium-term agreements.

Last fiscal year, Nepal imported electricity worth NPR 16.93 billion from India. However, exports are expected to decrease during winter as production drops and domestic demand rises.