India’s designated authority for cross border trade has approved an additional 251 MW of power exports from 12 hydropower projects in Nepal.
"For the first time Nepal would be exporting power to Bihar through a medium term power sales agreement," according to a press note issued by the Indian Embassy in Kathmandu.
This takes the total allowed quantum from 690 MW from 16 projects to 941 MW from 28 projects, it reads, adding that even before this 251 MW approval, Nepal had already become a net exporter of electricity and net revenue generator in the last fiscal year selling Rs 16.93 billion worth of electricity. "In October 2021, India had approved 39 MW power exports from Nepal to India for the first time."
In less than 3 years, this figure has grown by more than 24 times.
Nepal first began its power exports by selling in the Day Ahead Market of the Indian Energy Exchange (IEX). Since then, India has also granted access to the Real Time Market (RTM).
Nepal Electricity Authority (NEA) has also entered into medium term power sales agreements with discoms in Haryana and Bihar, the press note adds.
India has also opened the provision of counting hydropower imports from Nepal as a part of Hydropower Purchase Obligation (HPO) for buyers in India, which further incentivises buyers to purchase power from Nepal.
The Agreement for Long Term Power between India and Nepal envisages the sale of up to 10,000 MW power from Nepal to India in the next 10 years. This is the first year of the agreement and around 1000 MW exports have already been reached.
With the new development, Nepal is on track to become the leading hydropower exporter of the South Asia region. An agreement for sale of 40 MW power to Bangladesh has also been finalised and was planned to be signed on 28 July 2024 but got postponed due to recent political developments in Bangladesh.
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