India is set to purchase an additional 200 megawatts of electricity from Nepal. The Central Electricity Authority under India’s Ministry of Power has granted approval for the state of Haryana to import that amount of electricity under the mid-term agreement.

Under the mid-term agreement, approval has been granted to export an additional 199.70 megawatts of electricity from six hydropower projects in Nepal, confirmed Nepal Electricity Authority spokesperson Rajan Dhakal. “India has approved the export of an additional 199.70 megawatts of electricity,” he said. “Earlier, India had permitted the export of 941 megawatts. Nepal will now export a total of 1,140.70 megawatts of electricity.”

The Authority will now sell 435.2 megawatts of electricity to the state of Haryana alone. It has already been selling 235.5 megawatts of electricity to Haryana. Under the mid-term agreement, electricity will be sold to Haryana for four years.

The Authority has stated that the surplus electricity remaining after domestic consumption during the monsoon season will be sold to Bihar and Haryana each year from June to October. “The agreement for the additional 199.70 megawatts of electricity is also to sell it each year from June 15 to the end of October,” Dhakal said. He added that the selling rate for the electricity to be sold until the coming October is 8 rupees 72 paisa (INR 5.45) per unit.

Last year, the electricity selling rate for 125.89 megawatts was 8 rupees 72 paisa per unit. The rate per unit for 109 megawatts, which was approved for sale to Haryana the previous year, was 8 rupees 40 paisa (INR 5.25). The Authority has stated that all charges and taxes, including transmission line fees, losses, and trading margins on the Indian side, will not have to be borne by Nepal.

The Authority states that 125.004 megawatts of electricity produced from 10 hydropower projects in the country is being sold to Bihar. Nepal is exporting this electricity to Bihar through 132 kV transmission lines at Kataya, Raxaul, and Ramnagar, the Authority said. The Authority has been exporting surplus electricity generated during the monsoon season after domestic consumption to India. It is selling electricity to the states of Haryana and Bihar at competitive rates in India’s Energy Exchange (IEX) real-time market and day-ahead market, as well as under the mid-term electricity agreement.

Now, 1,140.70 megawatts of electricity produced from 34 projects will be sold in the Indian market. Additionally, the Authority has stated that there is a provision to sell an extra 10 percent of electricity. During the dry season, when river flow decreases and electricity production from run-of-river hydropower plants inside the country drops, electricity is imported from India.

Nepal imported electricity worth 1.2923 billion rupees from India in the fiscal year 2081/82. During the same period, it exported electricity worth 1.74599 billion rupees. Electricity worth 1.71932 billion rupees was exported to India and 26.6698 million rupees to Bangladesh. The Authority claims that since the previous fiscal year, Nepal has transformed from a net electricity importer to a net electricity exporter.

The Authority has been selling electricity from 14 projects in the IX real-time market and day-ahead market. According to the Authority, it has been selling electricity from Trishuli (23.28 megawatts), Devighat (14.55 megawatts), Marsyangdi (67 megawatts), Kaligandaki A (140 megawatts), Middle Marsyangdi (68 megawatts), and Likhukhola IV (51 megawatts).

Similarly, electricity from Chilime (21.44 megawatts), Solu Khola (22.80 megawatts), Kabeli B1 (24.25 megawatts), Lower Modi (19.40 megawatts), Upper Kaligandaki (32.70 megawatts), Upper Chameliya (37.30 megawatts), Upper Dordi A (24.25 megawatts), and Upper Balephi ‘A’ (34.92 megawatts) is being sold. Nepal entered India’s Energy Exchange ‘Day-Ahead’ market on May 1, 2021.

Initially, Nepal, which had received permission to import electricity, entered as an exporter on November 3 of the same year. The Authority had earlier obtained approval to export 690 megawatts of electricity produced from 16 projects.

Last year, with the approval of an additional 12 projects, Nepal received permission to export 941 megawatts of electricity from 28 projects. This year, with the approval of six more hydropower projects, permission has been granted to export 1,140.7 megawatts from 34 projects.

According to the tripartite agreement between Nepal, India, and Bangladesh, the Authority has resumed exporting 40 megawatts of electricity from June 15. Earlier, on November 15, electricity was exported for only 12 hours for the first time. There is an agreement to export electricity to Bangladesh every year from June 15 to November 15.

A tripartite agreement was signed on 3 October 2024 between the Nepal Electricity Authority, Bangladesh Power Development Board (BPDB), and NTPC Vidyut Vyapar Nigam Limited India. Previously, electricity trade had only been conducted between Nepal and India.

Nepal’s electricity reaches Bangladesh through the first international Dhalkebar–Muzaffarpur 400 kV transmission line between Nepal and India, and the Behrampur (India)–Bheramara (Bangladesh) 400 kV transmission line between India and Bangladesh.

According to the Authority, 40 megawatts of electricity - 18.60 megawatts from the Trishuli hydropower project and 21.40 megawatts from the Chilime hydropower project - have been approved for export to Bangladesh. Both projects have also received approval to export electricity to India. The Authority has an agreement to receive 6.40 US cents per unit for electricity sold to Bangladesh.

Newly Approved Projects for Haryana Supply

- Likhu-2: 50.89 megawatts

- Likhu Khola ‘A’: 28.20 megawatts

- Lower Solu: 80 megawatts

- Thulo Khola: 20.70 megawatts

- Super Kabeli Khola ‘A’: 13.10 megawatts

- Super Kabeli Khola: 6.81 megawatts

Source: Kantipur