Nepal Electricity Authority (NEA) has traded around 1.30 billion units of surplus power at competitive rate in the Indian energy market as of October 11, 2022 in the current fiscal year.

From the electricity, NEA has generated a net income of Rs 7.93 billion just providing surplus power to India.

“Exceeding export of one billion units of electricity is yet another milestone for us. The average price per unit of exported electricity was Rs 7.91,” said Kulman Ghising, Managing Director of NEA.

Since the electricity trade with India is done in Indian rupees, INR 4.95 billion is brought into Nepal from the sale of electricity, according to the electricity authority.

The electricity export to India has contributed in replenishing the country’s foreign exchange reserves and helped to reduce Nepal’s trade deficit with the southern neighbour.

According to the authority, it has set a target of earning about Rs 16 billion from electricity export in the current fiscal year.

NEA stated that altogether 39 MW, including 24 MW produced from Trishuli hydropower and 15 MW from Devighat powerhouse, had been traded on a daily basis in Indian Energy Exchange (IEX) since June 2.

NEA then exported altogether up to 364 MW of additional electricity produced from six hydropower plants daily to Indian market through 400kV Dhalkebar-Muzaffarpur cross-border transmission line at a competitive rate since June 10.

According to NEA, power is being traded at a competitive rate set by the IEX – dividing 24 hours into 96 blocks of 15 minutes each. The authority had traded surplus power worth NRs 3.88 billion in the previous fiscal year.