NEA refutes media claims, Says winter power import deal is cheapest option and strategically necessary

KATHMANDU: Nepal Electricity Authority (NEA) has taken serious exception to what it calls “distorted and deliberately misleading” media reports and social-media commentary regarding Nepal’s electricity import arrangement for the upcoming winter. The Authority clarified that the agreement has been carried out strictly under national power-system requirements and at the lowest available tariff, and has urged the public not to fall for misinformation.

In a statement released on Sunday, NEA said Nepal’s national grid, dominated by run-of-river hydropower projects, produces excess electricity during monsoon, which is exported, but faces a supply gap in the dry season when river flows decline. Last year, Nepal exported 2.38 billion units of electricity and imported 1.68 billion units from India, the Authority said, illustrating the structural fluctuation in generation.

The Authority currently sources electricity from India through the India Energy Exchange (IEX) — under Day-Ahead and Real-Time markets — as well as through government-to-government power exchange mechanisms. However, due to increased domestic demand in recent years, Nepal has been restricted to purchasing imports only during solar hours (6 AM to 6 PM) from the IEX, except through designated transmission points such as Dhalkebar–Muzaffarpur.

With similar constraints expected this year, NEA said it was necessary to secure a base import arrangement to avoid supply shortages during the dry season. Accordingly, proposals were invited on 13 Shrawan 2082 from PTC India Ltd. and NTPC Vidyut Vyapar Nigam (NVVN) — both state-linked Indian power trading institutions.

PTC had initially offered power at a landed tariff of INR 6.74 per unit if the deal was confirmed by 23 Bhadra 2082, while NVVN proposed INR 7.70 per unit. However, due to delays in internal decision-making, the initial PTC offer expired. A new bidding round resulted in PTC revising its rate to INR 6.95 per unit, while NVVN’s revised rate stood at INR 7.67 per unit.

NEA said the PTC rate was the lowest among all available options, including:

Based on this, the NEA Board on 10 Ashoj 2082 approved a deal to purchase up to 180 MW of electricity — 80 MW through the Bihar–Nepal 132 kV line and 100 MW via Dhalkebar–Muzaffarpur — for January to May 2026, in Round-The-Clock (RTC) mode. The Electricity Regulatory Commission has already endorsed the decision. The agreement has now been forwarded for clearance from India’s Designated Authority, without which the contract cannot be executed.

NEA insisted that the decision is financially responsible, technically necessary, and strategically aligned with national energy planning. The Authority also criticized attempts to personally target Energy Minister Kul Man Ghising, who chairs the NEA Board, and NEA Managing Director Manoj Silwal, accusing certain groups of intentionally spreading misinformation to discredit ongoing sector reforms.

“No decision has been taken that harms the institution or the nation,” the statement reads.
“Reports attempting to defame the Minister and the Executive Director are intentional, planned, and misleading. We request all stakeholders and media not to fall for misinformation.”

The Authority said Nepal’s energy transition and long-term goal of becoming a net exporter remain intact, but seasonal imports are unavoidable until large-storage hydropower and reservoir-based capacity are operational.