In the Indian energy market, Nepal has been granted permission to export electricity at a competitive rate. The Indian Ministry of Power, which approves inter-country power trading, granted approval to the Nepal Electricity Authority (NEA) to sell electricity on the Indian Energy Exchange market on Monday.
The NEA is allowed to sell 39 MW of electricity generated from the 24 MW Trishuli and 15 MW Devighat hydropower projects in Nuwakot to the Indian Energy Exchange in the first phase (IEX).
According to the NEA, the Dhalkebar-Muzaffarpur 400 kV cross-border transmission line would begin exporting electricity at midnight on Tuesday.
Currently, the connection is only utilized to import electricity.
The IEX has previously granted Nepal permission to purchase and import power. Since April 30, the NEA has began importing electricity through the IEX.
Milestone for electricity trade: Bhusal
Nepal has entered the Indian Energy Exchange market for the purchase and selling of energy, according to Minister of Energy, Water Resources, and Irrigation Pampha Bhusal.
“We are able to sell extra electricity because to ongoing efforts at the political, diplomatic, and administrative levels. This is a watershed moment in the two countries’ energy trade “she stated.
“We expect to receive approval to sell electricity generated by the 456 MW Upper Tamakoshi, 69 MW Marsyangdi, and 45 MW Upper Bhotekoshi hydropower projects in the Indian market soon,” Bhusal added.
The electricity trade permit, according to NEA Managing Director Kul Man Ghising, has put another brick to Nepal-India relations. After a long struggle to establish power trade between Nepal and India, Nepal’s electricity will be exported to the Indian market, paving the way for the development of hydropower in Nepal.
“Even though small-scale electricity exports have begun, we are sure that electricity generated from other projects, including Upper Tamakoshi, would be supplied to the Indian market in the near future,” he said.
Nepal will sell electricity through India’s central power system.
Every day from 10 a.m. to 12 p.m., the NEA will participate in the bid with the quantity of power sold in the exchange market. The market clearing price will be used to determine the selling rate per unit of electricity. Electricity will be exported 24 hours a day after the competitive rate is set.
When the price of coal soared in India, the exchange market price of power reached IRS 28 per unit. For electricity trade with Nepal, the Nodal Agency – NTCP Vidyut Vyapar Nigam (NVVN), India, would handle all exchange market transactions on behalf of the NEA.
The NVVN will report daily transaction statistics to the NEA by 6 p.m., according to the NEA