Nepal to sell surplus electricity in India's energy exchange market
Power gains
*Nepal became an energy surplus country ever since the 456MW Upper Tamakoshi Hydropower Project came into full operation in August
*It now has surplus power even during peak hours, usually between 7 and 8 pm
*The country is currently producing 2,000MW of electricity, of which 1,900MW is generated from hydropower projects
Earlier transaction
*Prior to this, Nepal and India had done transaction of electricity through exchange system
*Nepal had exported its surplus electricity during summer to India and imported the same from India during winter in the past for several occasions
Kathmandu, November 3
For the first time, Nepal will sell its surplus electricity to India at a competitive rate after New Delhi allowed the neighbouring country to trade its power in the Indian power exchange market, according to officials here on Wednesday.
The Energy Exchange under India’s Power Ministry on Monday granted permission to Nepal after persistent lobbying from Kathmandu, as the Nepal Electricity Authority (NEA) is now in a position to sell its surplus energy.
“Through continuous efforts at the political, diplomatic and administrative levels, we are allowed to sell surplus electricity. This is a milestone for energy trade between the two countries,” said Minister for Energy, Water Resources and Irrigation Pampha Bhusal.
“We hope to get permission soon to sell the electricity generated from the 456MW Upper Tamakoshi, 69MW Marsyangdi and 45MW Upper Bhotekoshi hydropower projects in the Indian market,” she said.
In the first phase, 39MW power, including 24MW produced by NEA-owned Trishuli hydropower and 15MW Devighat power house, has been permitted for trading in Indian Energy Exchange (IEX). Both projects were developed with India’s assistance, sources at NEA said.
Gokarna Raj Pantha, joint spokesperson for the ministry, said the Nepal Electricity Authority would now be able to participate in an auction in the Indian Energy Exchange everyday to sell power.
The NEA will start exporting the power through 400- kV Dhalkebar-Muzaffarpur inter-country transmission line from midnight, said an official at the NEA.
This transmission has until now been used just to import power as Nepal had already received permission for purchasing and importing power in the Indian Energy Exchange. PTI
