Friday, September 22, 2023
Friday, September 22, 2023

“Nepal Powers Up Export Potential: 300MW Deal with India, 1,100MW on the Horizon!”

Nepal's new deal allows the export of an additional 300MW electricity to India via Bihar, opening up opportunities for increased sales. Pending approval from Indian authorities, Nepal could potentially sell a total of 1,100MW, expanding its power export potential and strengthening bilateral energy cooperation.

India has given Nepal the opportunity to sell an additional 300MW of electricity in the Indian market. This is made possible through the transmission lines in Bihar, a neighboring state of Nepal. Previously, Nepal was only allowed to sell power in India through the 400kV Dhalkebar-Muzaffarpur Transmission Line. By opening new routes, Nepal can sell more power in the southern market.

An agreement was signed between Nepal Electricity Authority (NEA) and PTC India Ltd, allowing Nepal to utilize Bihar’s transmission infrastructure to sell 300MW of power in the Indian market. PTC India’s Chairperson and Managing Director, Rajib Kumar Mishra, confirmed this agreement, stating that they will import power from Nepal via Bihar for the first time. The arrangement is flexible, and they are currently looking for buyers, considering selling to exchanges or directly to consumers.

This agreement will enable Nepal to sell a total of 1,100MW of electricity in the Indian market. Additionally, two neighboring countries have agreed to transmit up to 800MW through the Dhalkebar-Muzaffarpur line. The agreement with PTC India was reached during the 10th Joint Steering Committee (JSC) meeting, where both countries agreed to increase the traded power through the transmission line. Nepal requested to export power to India through Bihar’s transmission infrastructure, promising to pay the transmission fee.

There are four 132kV cross-border transmission lines connecting Nepal and Bihar, excluding the 400kV Dhalkebar-Muzaffarpur line. These lines are currently used for power exchange between Nepal and Bihar. The arrangement allows Nepal to import power from India when needed and for Bihar to obtain power from Nepal when required.

This is the first time these transmission lines will be used for power trading. Nepal aims to utilize Bihar’s transmission infrastructure to sell power in India’s energy exchange market. This will allow the NEA to sell power to any state connected with Bihar. However, Nepal will require project-specific approval from Indian authorities before selling power in the Indian market through Bihar’s transmission infrastructure.

Nepal has been unsuccessful in obtaining approval for additional hydropower projects for export due to bureaucratic obstacles in India. With the arrival of the monsoon, Nepal’s hydropower projects are generating around 2,200MW, exceeding the peak domestic demand of 1,871MW. As a result, there is excess power in Nepal, and using Bihar’s transmission infrastructure would help Nepal sell it in India. Nepal requests early approval from India for more power projects to increase sales in the Indian market.

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