KATHMANDU,  July 28: Nepal has become the net-exporter of electricity, three years after entering in the energy trade with India.

Nepal exported around 1.94 billion units of electricity worth Rs 16.93 billion to India during the rainy season in the last fiscal year, 2023-24, while importing electricity worth Rs 16.81 billion from the southern neighbour during the dry season in the same year, according to the Nepal Electricity Authority (NEA).

The NEA has been selling surplus energy generated in the country in the day-ahead and real-time markets of the Indian Energy Exchange at competitive rates as well as to the NTPC Vidyut Vyapar Nigam Limited (NVVN) of India as per the mid-term energy trade. 

The NVVN sells the energy bought from Nepal in India’s Haryana state at an average rate of Rs 8.72 per unit.

According to the NEA, Nepal imported around 1.83 billion units of electricity during the dry season in the last fiscal year, at an average rate of Rs 9.17 per unit.

Electricity exports exceeded imports by around Rs 122 million in the last fiscal year.

In terms of quantity, Nepal exported around 109 million units more electricity to India than it imported.

In the previous fiscal year, 2022-23, Nepal had exported electricity worth around Rs 10.45 billion to India while importing electricity worth around Rs 19.45 billion from the southern neighbour.

Kul Man Ghising, the executive director of NEA, said while Nepal might continue to import electricity from India to fulfil the domestic demand in the dry season for a few more years, the country’s export will continue to rise.

“Though we have become a net exporter by a small margin, it is an important milestone in the energy sector,” said Ghising, claiming that the regular supply of electricity in the market has increased the use of electric vehicles and induction stoves, causing reduction in the import of petroleum products. 

“The surge in electricity export has contributed to reduce Nepal’s trade deficit with India,” Ghising added. “It has also positively impacted the country’s foreign exchange reserves.”

Nepal was allowed to enter in the day-ahead market of the Indian Energy Exchange on May 1, 2021 for the import while it was given the go ahead to export electricity on November 3, 2021.

Nepal has been selling 690 megawatts of electricity daily in the medium term, day-ahead and real-time markets in India, produced from 16 hydropower projects across the country.

NEA is in the process of being allowed to export an additional 400 megawatts of electricity as per the mid-term agreement, according to Ghising.

“We are also in the process of completing the agreement with Bangladesh to export 40 megawatts of electricity this year,” he added.

However, the tripartite agreement to be signed between Nepal, Bangladesh and India today (July 28) has been postponed indefinitely due to the students’ protest in Bangladesh.  (With inputs from RSS)