Due to increased electricity generation within Nepal and decreased domestic demand, Nepal has proposed selling an additional 222 MW of electricity to India. This comes as Nepal is experiencing daily losses of up to 800 MW. In June, Nepal began exporting the approved total of 364 MW of electricity to India through its power exchange market. Benefiting from abundant rainfall this year, Nepal is exporting surplus electricity to India for the second consecutive year, as reported by the state-owned power utility body, Nepal Electricity Authority (NEA).
In the fiscal year 2021/22, Nepal earned a total profit of Rs 16.1 billion from electricity sales. However, the profits from power exports amounted to Rs 59 million per day in the current fiscal year, specifically during the Nepali month of Shrawan.
The Nepal Electricity Authority (NEA) commenced trading surplus energy on the Indian Energy Exchange Limited (IEX) Day-Ahead Market from 2 June, 2022. Initially, power trading was based on 39 megawatts from two power houses in Nuwakot.
Later, starting from 10 June, 2022, daily electricity trade of 364 megawatts took place at competitive rates, generated from six different power houses in Nepal. Power exports were facilitated through the 400 kV Dhalkebar-Muzaffarpur transmission line. In the previous fiscal year, the NEA exported power worth Rs 3.8 billion.
