Kathmandu: Nepal is set to export an additional 251 MW of electricity to India following approval from India’s Designated Authority for Cross Border Trade. This power, generated from 12 hydropower projects, will be supplied to Bihar under a new medium-term sales agreement.
This approval raises the total permitted power exports from Nepal to India from 690 MW across 16 projects to 941 MW from 28 projects.
Previously, Nepal became a net electricity exporter, generating a net revenue of Rs 16.93 billion in the last fiscal year, as reported by the Indian Embassy in Nepal. Since starting exports in October 2021 with 39 MW, Nepal’s export capacity has surged more than 24-fold.
Nepal initially entered India’s Day Ahead Market and has since gained access to the Real Time Market. The Nepal Electricity Authority (NEA) has also secured medium-term agreements with distribution companies in Haryana and Bihar.
India’s new provision allows hydropower imports from Nepal to count towards its Hydropower Purchase Obligation (HPO), encouraging increased purchases. Under the Long-Term Power Agreement, which aims for up to 10,000 MW of power exports over the next decade, Nepal has already achieved around 1,000 MW in the first year.
Additionally, a 40 MW power sale agreement with Bangladesh has been finalized, though its signing has been delayed due to recent political developments there.