ERC Approves NEA to Export 440 MW of Electricity to India and Bangladesh

Kathmandu: The Electricity Regulatory Commission (ERC) has granted approval for Nepal Electricity Authority (NEA) to export 440 MW of electricity to India and Bangladesh. This decision came following the approval of NEA's export proposal during the ERC meeting held on Tuesday.

ERC disclosed that it has sanctioned the export of 400 MW to India and 40 MW to Bangladesh. Out of the 400 MW allocated to India, 200 MW will be supplied to Haryana through NTPC Vidyut Vyapar Nigam (NVVN), and another 200 MW to Bihar through Power Trading Corporation (PTC).

Under the mid-term Power  Purchase Agreement (PPA), Nepal is authorized to export electricity to Haryana state in India annually for up to five years, from June 15 to October 31. The approved export price to India stands at 5.45 INR per unit (8.72 NPR). NVVN will facilitate the distribution of electricity in Haryana. Similarly, Bihar State Power Holding Company Limited (BSPHCL) has secured approval to purchase electricity through PTC until 2026, as per the mid-term agreement.

In the 10th Joint Steering Committee (JSC) meeting, Nepal and India agreed under the mid-term PPA to export electricity to Bihar state. The JSC meeting highlighted the possibility of conducting electricity exchange through the open market in Bihar under the Power Exchange Committee (PEC). The transmission lines Kushaha-Kataiya, Raxaul-Parwanipur, and Ramnagar-Gandak 132 kV have been identified for this purpose, with technical capacity for exporting or importing up to 350 MW of electricity.

Additionally, ERC has endorsed a proposal for Nepal to export 40 MW of hydropower to Bangladesh at a rate of 6.40 US cents per unit (approximately 8.57 NPR). This decision was approved by Bangladesh's Cabinet Committee on Government Purchase (CCGP) on May 29. The agreement allows Nepal to sell 40 MW of hydropower to Bangladesh for a duration of five years, from June 2024 to November 2028, under the mid-term PPA. This agreement involves cooperation between the regulatory bodies, Bangladesh Power Development Board (BPDB), and India's NVVN.

Nepal intends to utilize the Dhalkebar (Nepal)-Muzaffarpur (India) and Baharampur (India)-Bheramara (Bangladesh) transmission lines for exporting hydropower to Bangladesh annually from June 15 to November 15.