Nepal renews agreement to import 554 MW electricity from India

representative photo

Kathmandu: Nepal has recently inked a crucial agreement with India to import 554 megawatts (MW) of electricity, as confirmed by the Nepal Electricity Authority (NEA). This renewed electricity import pact between Nepal and India spans a duration of three months, effective from March 30.

Chandan Kumar Ghosh, head of the NEA’s load dispatch center, revealed the specifics of the agreement, stating, “There has been an agreement to import 554 MW of electricity from the Indian market for three months from March 30.”

Under the terms of the agreement, Nepal will be sourcing electricity through the exchange market in India, utilizing transmission lines including Dhalkebar-Muzaffarpur and Tanakpur.

Ghosh elaborated further on the agreement, mentioning, “The contract for importing 500 MW through the Dhalkebar transmission line and 54 MW from Tanakpur has been renewed.”

This development comes amidst a backdrop of dwindling electricity production in Nepal’s hydropower projects due to the onset of winter. Despite having a total capacity of 3,000 MW connected to the national grid, the actual production currently stands at a mere 1,200 MW, according to NEA reports.

The majority of hydropower projects in Nepal operate on a run-of-the-river basis, resulting in fluctuating electricity production throughout the year. The NEA noted that while electricity generation peaks during the rainy season, it significantly drops during winter months.