NEA Allowed To Purchase Electricity From India

Kathmandu: Nepal Electricity Authority (NEA) has received approval to purchase and import power from the Indian energy market.

The Ministry of Power of India has given approval to NEA on Wednesday to purchase and import electricity from the energy exchange market following the latter’s entry to the Indian Power Exchange Market as a member.

NEA has so far been procuring power from NTPC Vidyut Vyapar Nigam (NVVN), Power Trade Company (PTC) and distribution companies of Bihar, Uttar Pradesh and Uttarakhand state governments.

Now, electricity can be purchased and imported directly from the Indian market as per the need, said Managing Director of NEA Hitendra Dev Shakya.

He termed the development as a milestone for the development of Nepal’s hydropower sector. “It has historical significance for the electricity trade between the two countries as it can be purchased and imported as per the need at a competitive rate set by the market without any interference,” said Shakya.

According to him, as Nepal has access to the energy exchange market in India, another step has been opened for electricity trade from India to Bangladesh.”

NEA has recently sent a proposal to India for the approval of the sale of excess electricity produced in Nepal.
In the first phase, NEA has proposed to sell 456 MW power generated from the Upper Tamakoshi Hydropower Project and 45 MW Bhotekoshi Hydropower Project to India during the rainy season.

“We had made an offer for the purchase and sale of electricity in the Indian energy market. We have received the approval for the purchase and have sent additional necessary documents for sale,” said Shakya.

“Due to the dry weather and lack of rain, the flow of water in the river has decreased and the NEA as well as the private sector has significantly reduced their power generation. This has put pressure on the demand and supply management in the domestic market,” he said.

NEA has forwarded a process to import around 30 MW power to meet the increased energy demand, he said.
Shakya clarified that the demand for electricity has increased against the decreasing generation of power, which has forced the power authority to import more electricity from India.

Minister for Energy, Water Resources and Irrigation Top Bahadur Rayamajhi on Wednesday had visited load dispatch centre in Syuchatar where he directed the NEA officials to make necessary arrangements to address short supply.

According to NEA, an average of 200 MW has been generated from NEA’s run-of-the-river and semi-reservoir power plants, 60 MW from reservoir-based Kulekhani and 200 MW from private sector power plants, while 710 MW has been imported from India.

The highest demand for electricity in the system is 1,463 MW and the average demand is 1,150 MW. NEA is currently importing major share of electricity from India through Dhalkebar-Muzaffarpur transmission line.

The power utility is confident that it will be easier to manage the demand and supply as 76 MW of electricity will be generated from one unit of 456 MW Upper Tamakoshi Hydropower Project from mid-May, 2021. 

The Rising Nepal