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Kathmandu, Sept 4: Nepal Electricity Authority (NEA) has started selling around 950 megawatts (MW) of electricity daily to India and Bangladesh. The authority has approval to export up to 1,165 MW, with 1,125 MW allocated for India and 40 MW for Bangladesh, but actual exports currently average around 900 MW.

In Bangladesh, NEA exports 40 MW generated by the Trishuli (25 MW) and Chilime (22 MW) hydropower projects under a five-year seasonal agreement valid from June 15 to November 15. Bangladesh pays 6.40 US cents per unit. In India, 521 MW is sold through the Indian Energy Exchange (IEX) from projects including Upper Solu, Marsyangdi, Kaligandaki A, Middle Marsyangdi, Likhu-4, and others. An additional 603 MW is exported under medium-term contracts from projects such as Likhu-1, Likhu-2, Devighat, Lower Solu, Mewa Khola, and Karuwa Seti.

NEA uses the IEX “Day-Ahead” and “Real-Time” markets, where electricity is traded in 96 fifteen-minute blocks daily. Prices vary by block, reflecting competitive market rates. The authority received permission to sell electricity to India in November 2021. Despite the increase in capacity to 1,125 MW, exports remain below full capacity, particularly at the end of the monsoon season.

Nepal’s installed electricity generation capacity now stands at 3,878 MW, including 409 MW of hydropower, 25 MW of solar, and 91 MW from alternative energy sources. Another 196 MW of hydropower projects are under testing. However, actual generation remains below full potential.

In the last fiscal year, Nepal exported electricity worth NPR 17.46 billion—NPR 17.19 billion to India and NPR 267 million to Bangladesh. Imports from India totaled NPR 12.92 billion. This follows fiscal year 2080/81 (2023/24), when Nepal became a net electricity exporter for the first time.

Power reaches India via the Dhalkebar–Muzaffarpur 400 kV transmission line and Bangladesh through the Baharampur–Bheramara line. Despite a target to produce 15,000 MW over ten years, with 10,000 MW for domestic use and 5,000 MW for export, actual generation remains limited. A new government plan aims for 28,500 MW in a decade, but delays in “take-and-pay” agreements and purchase contract amendments have stalled new project development.

People’s News Monitoring Service