NEA Exports Electricity Worth Rs. 13.04 Billion in Five Months, Faces Challenges Due to Floods

The Nepal Electricity Authority (NEA) has exported electricity valued at Rs. 13.04 billion during the first five months of the current fiscal year (2024/25). According to NEA data, approximately 1.76 billion units of electricity were exported to India from July 16 to December 15, 2024.

The NEA has been exporting surplus electricity to India during the rainy season for the past several years, capitalizing on the excess production. The average rate of electricity exported during this period was Rs. 7.39 per unit.

The surplus electricity is sold at competitive rates in the day-ahead and real-time markets of the Indian Energy Exchange (IEX), as well as to the states of Haryana and Bihar under a bilateral medium-term power sales agreement. The transactions are conducted in Indian Rupees, generating an income of IRs 8.15 billion for the NEA.

The highest export was recorded in the month of Shrawan (July 16 to August 16), amounting to Rs. 4.15 billion, while the lowest export was Rs. 281.4 million in the month of Mangsir (November 16 to December 15). Other monthly exports include Rs. 3.68 billion in Bhadra (August 17 to September 16), Rs. 3.07 billion in Ashoj (September 17 to October 16), and Rs. 1.87 billion in Kartik (October 17 to November 15).

NEA Managing Director Kul Man Ghising explained that the electricity export figures were affected by the damage to the 456 MW Upper Tamakoshi Hydropower Project caused by floods and landslides in the last week of September. As a result, power generation from the hydropower project ceased from September 28. Additionally, reduced power generation from other hydropower plants due to the dry season led to the early onset of electricity imports to meet domestic demand.

With winter reducing hydropower generation due to lower water flow in rivers, electricity imports have begun to manage domestic needs. However, NEA anticipates that exports will resume once water flow increases in the coming months. This year, NEA has also started exporting 40 MW of electricity to Bangladesh through India.

The NEA has set an export target of around Rs. 30 billion for the current fiscal year. However, the target is expected to be impacted due to damages to hydropower projects and transmission lines caused by floods and landslides. The Upper Tamakoshi and other small hydropower projects, as well as the Kabeli Corridor transmission line, were significantly affected. The floods in Maikhola damaged the Kabeli Corridor, reducing production by about 200 MW.

Despite these setbacks, the reconstruction of the Upper Tamakoshi project is progressing and is expected to be operational by December 25. Similarly, the Kabeli Corridor transmission line has been fully reconstructed and is now operational.

As hydropower production is expected to decrease in the winter, electricity exports will gradually decline, with the domestic demand being met primarily through imports. However, NEA remains optimistic about resuming exports once water flow increases in the coming seasons. Currently, NEA has received approval from India to sell 941 MW of electricity from 28 projects under both competitive market and medium-term power sales agreements.