Nepal exported electricity worth over Rs 12.50 billion to India in the first four months of the current fiscal year.

According to Nepal Electricity Authority (NEA), it exported more than 1.361 billion units of electricity worth the aforementioned amount in the given period. The earning from energy export was Rs 4.86 billion more than the amount generated in the same period last year.

During mid-July and mid-November last year, Nepal sold 983.8 million units of electricity to its southern neighbor, out of which the country gained a revenue of Rs 7.636 billion.

Although the electricity export this year was lesser than the quantity sold in the review period of the last fiscal year, the earning was way higher mainly due to the high price of the electricity sold, according to the records maintained by the NEA. This year, electricity was sold at an average rate of Rs 9.18 per unit compared to Rs 7.76 per unit last year.

The NEA this year started exporting surplus electricity on June 11. In around five and a half months, the earnings from the export of over 1.621 billion units of electricity stood at Rs 14.50 billion. Last month, the NEA sold the largest amount of electricity worth Rs 4.17 billion.

Since September first week, Nepal has been exporting 632 MW of electricity to India, up from 452 MW previously. In the following month, India permitted Nepal to sell an additional 44 MW of electricity in India's Energy Exchange (IEX) real-time market.

With this provision in place, the NEA has been permitted to participate in the bidding process one hour and 15 minutes before selling the electricity in the real-time market. Earlier, the NEA had been selling electricity in India’s day-ahead competitive market through a bidding process.

In the fiscal year 2021/22, the NEA exported 493 million units of electricity and earned Rs 3.88 billion. Last year, the export increased to 1.34 billion units of electricity, while the earning was Rs 10.45 billion.

Nepal aims to produce 15,000 MW of electricity by 2030. On the other hand, India has set a target of achieving zero carbon emissions by 2070.

‘Govt plans to produce additional 28,000 MW of electricity by 2035’

Minister for Energy, Water Resource and Irrigation Shakti Bahadur Basnet has said the government has planned to produce an additional 28,000 MW of electricity by 2035. “Adequate production of hydroelectricity is vital to achieve sustainable development,” said Basnet, speaking at a program organized in the capital on Thursday.

Ganesh Karki, president of the Independent Power Producers of Nepal, urged the government to expedite signing power purchase agreements in order to accomplish the task of producing an additional 28,000 MW of electricity in the next 12 years.