Nepal has received permission from India to export additional 251 megawatts (MW) of electricity, beyond the existing agreement between the two countries.
According to the Embassy of India in Kathmandu, Nepal has received permission to export addition 251 megawatts of electricity generated by 12 hydropower projects.
With the permission, Nepal now can export 941 megawatts of electricity (from 28 hydropower projects) including 690 megawatts from 16 projects and 251 from 12 hydropower projects to the Bihar State of India in accordance with the medium-term power trade agreement.
Nepal has been exporting electricity since October, 2021. It generated a revenue of Rs 16 billion 930 million last year by exporting electricity to India.
The India government had permitted Nepal to export 38 megawatts of electricity to its country in 2021 for the first time. Now, it has increased by 24 folds, the Embassy has said.
Nepal had started selling its electricity to India through the competitive platform of the Indian Energy Exchange’s day-ahead market.
Since then, Nepal has extended its approach in the real time market of India, too. The Nepal Electricity Authority (NEA) has entered into a medium-term contract to sell electricity to the power distribution companies (DISCOMs) of Haryana and Bihar.
According to the long-term power purchase agreement, Nepal will sell 10, 000 megawatts of electricity in the next 10 years. Nepal has successfully exported 1,000 megawatts of electricity within the first year of the agreement, as reported by the Embassy.
While the process of finalizing the agreement to sell 40 megawatts of electricity to Bangladesh was nearing completion, it was stalled due to the ongoing political unrest in Bangladesh even though it was signed on July 28.
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