Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: India has renewed its approval allowing Nepal to import up to 654 megawatts (MW) of electricity at competitive rates through the Indian Energy Exchange (IEX), providing crucial support for Nepal’s winter power demand management.
The approval was renewed by India’s Central Electricity Authority (CEA) under the Ministry of Power, permitting Nepal to import electricity on a round-the-clock (RTC) basis from the IEX’s Day-Ahead Market (DAM) and Real-Time Market (RTM). The earlier approval was set to expire on Wednesday.
Under the renewed permission, the Nepal Electricity Authority (NEA) can import 600 MW through the Dhalkebar–Muzaffarpur 400 kV cross-border transmission line and an additional 54 MW via the Tanakpur–Mahendranagar interconnection, taking the total to 654 MW at market-based competitive prices.
According to the NEA, the approval covers electricity imports from Poush 17 to Chaitra 17 (January 1 to March 31, 2026). The authority stated that approval for the subsequent period—from Chaitra 18 to Bhadra 15 (April 1 to August 31, 2026)—will be processed separately at a later stage.
Sources said the renewal followed direct engagement at the ministerial level. Minister for Energy, Water Resources and Irrigation; Physical Infrastructure and Transport; and Urban Development, Kulman Ghising, on Tuesday, personally contacted senior officials at India’s Ministry of Power, requesting the renewal of permission for electricity imports under the RTC modality.
Minister Ghising said the renewed approval would significantly ease winter-season demand–supply management, when domestic hydropower generation typically declines due to reduced river flows. He noted that access to RTC power from the Indian market would help ensure supply stability and reduce the risk of shortages during peak demand periods.
The renewal is considered critical for Nepal’s power system, as winter electricity imports through the IEX play a key role in maintaining grid reliability while supporting economic activity and household consumption during the dry season.
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