Nepal Electricity Authority: According to the Nepal Electricity Authority, in the second month of the current financial year 2022/23 Rs. 2.42 billion has been exported to India. The Nepal Electricity Authority (NEA) exported 246.5 million units of surplus electricity in the Nepalese month of Bhadra and earned Rs. 2.42 billion.
Although India has not imported all the surplus power that Nepal has during the last four months, the Nepal Electricity Authority has exported more than one billion units of electricity worth Nepali rupees equivalent to 8 billion rupees.
According to a press release, the NEA has disbursed approximately Rs. Has exported electricity worth over one billion units. 8 billion to India in the last four months. NEA has been exporting surplus power to India under the Indian Energy Exchange Limited (IEX) since last June. Till October 11, Nepal exported 1.3 billion units of electricity to India.
According to NEA, it collected Rs. 7.93 billion from selling electricity to India. Kul Man Gheesing, Managing Director, NEA said that India has crossed 1 billion units of electrification exports is another milestone. He said that Nepal has been exporting electricity at an average of Rs 7.91 per unit. Nepal has been exporting 364 MW of power to India.
Since Nepal is exporting electricity in the Indian currency, it is helping to increase Nepal’s foreign exchange reserves as NEA has already collected an Indian currency of Rs. 4.95 billion.
Nepal Electricity Authority: MD Gheesing’s wish
Gheesing’s concern from the very first day he joined NEA as MD was how to create an export market for surplus power. With the efforts of the Ministry of Power, Water Resources and Irrigation and the technical preparation of the NEA, the Government of India has agreed to open its electricity market to Nepal.
A political-level meeting between Prime Minister Sher Bahadur Deuba and the Prime Minister of India has finalized the deal making it possible to export Nepal’s electricity to India.
After the opening of the Indian market for Nepal’s electricity, Nepal has exported electricity worth more than Rs 7 billion in the last four months. For MD Gheesing, opening up of the Indian market for power exports is a milestone in his career.
In a span of just over a year, MD Gheesing has made huge strides in the power sector. The announcement of the construction of 1061MW Upper Arun is a historically important decision. With this announcement, the NEA moved towards four-digit projects. After starting with the two-act Chilime and completing the three-act Tamakoshi, Upper Arun positioned itself as the lead project.
According to the Nepal Electricity Authority, in the second month of the current financial year 2022/23 Rs. 2.42 billion has been exported to India.
The Nepal Electricity Authority (NEA) exported 246.5 million units of surplus electricity in the Nepalese month of Bhadra and earned Rs. 2.42 billion.
The authority started selling surplus power during the rainy season through competition in the day-ahead market of the Indian Energy Exchange Limited (IEX) on June 2, 2022.
Initially, 39 MW of electricity generated by the two power plants was considered as one source and sold to IEX on a daily basis. Since then, from June 10, 2022, 364 MW of electricity generated by six hydroelectric plants has been sold in the Indian market at a competitive rate per day.
The authority has earned Rs. 7.19 billion by selling 787.8 million units of electricity in the Indian market in four months (Jeshtha, Asar, Shrava and Bhadra).
Since electricity trade with India is denominated in Indian rupees, about 4.49 billion Indian rupees came from the sale of electricity to Nepal during the four-month period. IR 1.51 billion has been earned from the sale of electricity in the month of Bhadra alone.
MD Ghising said that the amount received from the increase in power export every month is contributing to Nepal’s foreign exchange reserves and reducing the trade deficit between the two countries.
He said, “In the current financial year, we have set a target of earning around Rs 16 billion from the export of electricity. We estimate that power can be exported by the first week of Mangseer and after Jestha when exports will resume.” The target will be met,” he said.
“Now the festivals are about to start, the domestic consumption of power will go down slightly as the factories are closed, but since our production will be at full capacity, we have sent a proposal for approval for export of around 200 MW. Electricity. We are confident that the Indian side will soon approve the export of more power.
In IEX, 24 hours are divided into 96 blocks of 15 minutes each and electricity is traded at a competitive rate determined by the market.
That’s why the price of each block is different. The average rate of electricity exported by the Authority at Bhadra is Rs. 9.80 per unit. The average rate for four months is Rs. 9.23 per unit.