With three key projects aimed at beefing up the power transmission
capacity between India and Nepal achieving completion, an additional 40 MW of
electricity transfer from India to the Nepal is expected to commence over the
next couple of months.
The wrapping up of the projects by the Indian side — executed on
the ground by India’s state-owned transmission major Power Grid Corporation —
comes at a time when the country is working hard to set the ball rolling on its
strategic initiative of putting in place a multilateral SAARC Market for
Electricity (SAME) on the lines of the Nord Pool in the Scandinavian countries
and the West African Power Pool.
Nepal is facing an electricity deficit of around 300 MW and currently
draws around 50 MW from Bihar under a bilateral pact, along with some
additional transfers from NHPC’s Tanakpur hydro station in Uttarakhand.
Extra power transfers from India would help Nepal in a big way to
as the demand and supply gap could not be filled immediately with the ongoing hydro power projects.
Nepal has already, in principle, agreed to substantially ramp up
power buys from India, with plans already underway to increase the power
exchange volume to 200 MW by ramping up capacity between the two countries.
For the additional purchases, the Himalayan nation plans to tap
the short-term electricity market window existing in India, including the two
operational power exchanges, according to the decision taken at the Tenth
meeting of the Indo-Nepal Power Exchange Committee held here in December 2011.
On the larger SAARC grid plan, while a transmission link with
Bhutan is already in place, there are plans to augment the existing line to
enable up to 5,000 MW of electricity imports into India by 2020. With Sri
Lanka, plans are under way for setting up a $450-million undersea power
transmission link.
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