Electricity worth Rs. 15.24 billion was exported to India in 179 days of this year’s rainy season. The Nepal Electricity Authority (NEA) had started selling surplus electricity in the rainy season to the Indian market since June 11, 2023.

According to the NEA, it has earned Rs. 15.24 billion by exporting about 1.74 billion units of electricity from June 11 to December 6 this year. The Authority exported a maximum of 700MW of electricity a day during this period. The average selling rate of electricity was Rs. 8.77 per unit.

About 1.67 billion units of electricity worth Rs. 13.23 billion were exported during the current fiscal year (from July 17 to December 6, 2023). The average selling rate of the exported electricity during this period was Rs. 8.96 per unit, said the NEA.

With the onset of the dry season, the flow of water in the rivers and streams has decreased, resulting in a fall in power generation from the hydroelectricity plants. As a result, Nepal has started importing electricity from the Indian market to meet the domestic demand for power in winter, stopping export from Friday night.

Managing Director of NEA Kul Man Ghising said that the maximum daily electricity demand is around 1,700MW, and since domestic production alone was not enough to meet it, a small quantity of electricity had to be imported.

“Currently, electricity generation and demand are almost equal, we are collecting water in our semi-reservoir power plants during the day and night and running them during the evening and morning peaks,” he said.

“Importing electricity during the peak hours makes the price more expensive, while during the day and night, the price is cheaper, so the semi-reservoir projects within the country collect water during the day and night and supply the cheap electricity at the peak time.”

He said that although the import of electricity would increase slightly in the months of Chaitra and Baishakh this year, the export would be more than the import and it was projected that the country would become a net power exporter.

“Electricity export will start again from the second week of Baishakh. This year, about 900 megawatts will be added to the national transmission system, so electricity worth Rs. 25 to Rs. 30 billion will be exported next year,” Ghising added.

“Large capacity transmission lines are being built to improve the transmission between Nepal and India while hydropower projects are also being built within the country. So, within the next five years, electricity worth Rs. 100 billion will be exported annually.” The Authority has been exporting surplus electricity to India only during the rainy season.

The Nepal Electricity Authority has received approval from India for the export of 657 MW, including 547 MW in the competitive market and 110 MW to the Indian company NTPC Vidyut Vyapar Nigam Ltd (NVVN). The NVVN later sold the electricity to the state of Haryana.