In historic news, Nepal has received approval to sell electricity in India’s real-time market. It’s the first time the Nepal Electricity Authority (NEA) obtained permission to import power from Indian Energy Exchange Limited (IEX). After the agreement, Nepal will be able to sell up to 44 MW of electricity in India.
This makes a huge difference to the Nepali authority and the way the sale will take place. So far, NEA had been bidding a day ahead while selling the energy. From now on, the authority will bid just 1 hour 15 minutes earlier. Being able to do so will impact its bidding ultimately affecting revenues for good. NEA can also manage power loads more efficiently and figure out how much it can sell within the limit depending on the power generation.
The approval comes in part from its procedure to allow cross-border import/export policy with neighboring countries. Check out: 40 MW Upper Chameliya hydroelectricity project inaugurated
Nepal will sell electricity in India in the real-time market
In the first phase, Nepal will sell 19.4 MW of electricity generated from the Lower Modi Khola hydro-electricity project and 24.25 MW of power from Kabeli B 1 in India’s real-time energy market which totals an inspiring 44 MW. Prabal Adhikari, Director of Power Trade Department, NEA said that Nepal can now sell its electricity in India on both a Day-Ahead and a Real-Time basis.
“Prior to this, we had to wait a day to import or export electricity in the competitive market, but now we are able to trade by bidding 1.5 hours in advance. This has made it possible to buy and sell electricity if the electricity production suddenly stops or if the production increases,” said the official.
Also read: Nepal Electricity Authority is issuing IPO at a premium price within 6 months
Will help in better power management
He also highlighted the significance of real-time trading. He said, “Since we were only participating in the day-ahead market, now being able to participate in the real-time market is an achievement for us. In addition to the convenience of electricity management, a new brick has been added to the electricity trade between the two countries.”
NEA sells surplus electricity in the rainy season. The authority has obtained a nod to sell 522 MW of power in the competitive market, and 110 MW via NVVN totaling 632 MW.
In Shrawan and Bhadra of FY 2080/81, NEA sold electricity worth Rs 5 arab, 43 crore, and 31 lakh to India.
Electricity is considered one of the major sources of earning and India remains a key collaborator in realizing the economic goals with power. Let’s hope the deal finds apt execution and more enhancements in the future.