Kathmandu, July 20: With the onset of the monsoon, Nepal has ramped up electricity exports to India and Bangladesh. Although exports had begun in small quantities in April and May, volumes have increased significantly with the rainy season.
According to the Nepal Electricity Authority (NEA), Nepal has been exporting 40 MW of electricity to Bangladesh since Monday. The country had received approval on November 15, 2024, to export 40 MW to Bangladesh for five months, from June 15 to November 15. India has also authorized Nepal to export up to 1,165 MW of electricity.
The NEA said additional electricity exports to India also began on June 15, leading to a substantial increase in power sales.
At present, Nepal exports around 650 MW of electricity daily to India and Bangladesh combined.
NEA spokesperson Rajan Dhakal said exports under bilateral agreements with the Indian states of Haryana and Bihar began on June 15. According to him, Nepal is currently exporting 650 MW daily through both India’s day ahead market and bilateral arrangements.
“We started exporting electricity in small quantities from April. Since Monday, exports have expanded to both India and Bangladesh as per agreements. More than 600 MW is being exported to India, while 40 MW is being exported to Bangladesh,” Dhakal said.
The NEA has approval to sell up to 1,125 MW of electricity in the Indian market alone. The average selling price ranges between INR 5.25 and INR 5.45 per unit.
Nepal formally began exporting electricity to India on November 2, 2021. Starting with permission to export just 39 MW, the country has now secured approval to sell a total of 1,165 MW to India and Bangladesh.
According to the NEA, Nepal earned Rs 20.41 billion from electricity exports to India and Bangladesh during the first nine months of the current fiscal year. During the same period, it imported electricity worth Rs 7.39 billion from India.
In the five months between mid-July and mid-December, Nepal exported 2,714 GWh of electricity. The country’s installed electricity generation capacity has now reached around 4,300 MW.
The government has set a target of adding 1,040 MW of new generation capacity in the next fiscal year. If achieved, Nepal’s installed capacity will exceed 5,500 MW.
With monsoon rains increasing river flows, power generation from the NEA, its subsidiaries and private producers has reached around 2,500 MW.
According to the NEA, electricity demand currently exceeds 60,000 MWh, while domestic consumption stands at 43,502 MWh. Peak domestic demand is only 2,176 MW, allowing surplus electricity to be exported to India.
However, domestic generation declines sharply during the dry season, forcing Nepal to import electricity from India. Nepal has emerged as a net electricity exporter since last year. Most hydropower projects in the country are run of river schemes, which operate at full capacity during the monsoon but generate only 20 to 30 percent of capacity during winter.
Technical Hurdles Affect Bangladesh Exports
While exports to India are progressing well, plans to expand electricity trade with Bangladesh have slowed.
Nepal had aimed to increase exports to Bangladesh from 40 MW to 60 MW. Approval already exists for exporting 40 MW produced by the Trishuli and Chilime hydropower projects.
However, the process has stalled after India’s Central Electricity Authority cited limited capacity on the India-Bangladesh transmission line and declined approval for additional exports.
Dhakal said delays in bilateral meetings following India’s recent general elections have also slowed progress.
Nepal currently sells electricity to Bangladesh at 6.40 US cents per unit. Any additional approved exports would be sold at the same rate.
Since Nepal and Bangladesh do not share a border, electricity must pass through Indian transmission infrastructure, making India’s approval essential. Current authorization allows exports to Bangladesh until October 2, 2029.
The NEA said Nepal exported about 147 GWh of electricity to Bangladesh between mid June and mid November last year, earning USD 9.436 million. Bangladesh bears the wheeling charges for using India’s transmission network, while Nepal covers transmission losses up to Muzaffarpur, India. Losses beyond that point to the Bangladesh border are borne by Bangladesh.
Nepal’s electricity reaches Bangladesh through the 400 kV Baharampur, India, to Bheramara, Bangladesh transmission line.
People’s News Monitoring Service
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