NEA reports record-breaking revenue as Nepal’s electricity exports soar

KATHMANDU: Nepal has recorded electricity exports exceeding Rs 12.50 billion to India in the initial four months of the current fiscal year. The Nepal Electricity Authority (NEA) reported that during this period, over 1.361 billion units of electricity were exported, resulting in earnings that surpassed the previous year’s figure by Rs 4.86 billion.

Between mid-July and mid-November last year, Nepal sold 983.8 million units of electricity to India, yielding revenue of Rs 7.636 billion. While the quantity of electricity exported this year was lower compared to the same period last fiscal year, the revenue was significantly higher. This increase is attributed to the higher average rate at which electricity was sold this year (Rs 9.18 per unit) compared to the previous year (Rs 7.76 per unit), as indicated by NEA records.

The NEA commenced surplus electricity exports on June 11 this year, generating over Rs 14.50 billion from the export of more than 1.621 billion units of electricity in approximately five and a half months. Notably, last month saw the highest electricity sales, amounting to Rs 4.17 billion.

Since the first week of September, Nepal has been exporting 632 MW of electricity to India, up from the previous 452 MW. Additionally, India granted permission for Nepal to sell an extra 44 MW of electricity on its Energy Exchange (IEX) real-time market.

With this approval, the NEA can participate in the bidding process one hour and 15 minutes before selling electricity in the real-time market. Previously, electricity sales in India’s day-ahead competitive market were conducted through a bidding process.

In the fiscal year 2021/22, the NEA exported 493 million units of electricity, earning Rs 3.88 billion. The following year saw an increase in exports to 1.34 billion units, resulting in earnings of Rs 10.45 billion. Nepal’s goal is to achieve a production capacity of 15,000 MW of electricity by 2030, while India aims for zero carbon emissions by 2070.

Fiscal Nepal |
Friday November 24, 2023, 10:26:08 AM |

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