Kathmandu, Oct.1: For the first time, the Nepal Electricity Authority has received permission to sell electricity in the real time market of Indian Energy Exchange (IEX).
The Authority, which has been selling electricity by bidding in the day-ahead in the competitive energy market of India, will now be allowed to sell electricity by bidding one hour and 15 minutes in advance.
According to the NEA, the Central Electricity Authority under the Ministry of Power of India has given permission to the NEA to sell electricity in the real time market on Saturday.
As per the new permission, based on the production of electricity, the NEA will be allowed to conduct electricity transactions in the Indian market by bidding one hour and 15 minutes before.
On July 31, 2023, the Ministry of Power of India had arranged for the authorised bodies of the neighbouring countries to participate in the real time market through amending the procedures of the bodies designated for approval and facilitation of cross-border electricity trade.
In the first phase, the Central Electricity Authority of India has approved the sale of around 44 MW of electricity generated from the 19.4 MW Lower Modi and 24.25 MW Kabeli B1 hydropower projects in the real time market, said the NEA.
The electricity of both these projects was up to now being sold in the day-ahead market. The permission given to the day ahead market was ending on Saturday.
Prabal Adhikari, Director at Power Trade Department, NEA, said that two projects have been sent for renewal of day-ahead and have received permission for sale in both day-ahead and real time markets of India.
Now the electricity of the two projects can be sold day-ahead and according to need in the real time market, he said.
“Earlier, we had to wait for a day to import and export electricity from the competitive market, but now we are able to do business by bidding one hour and 15 munities before. This has made it possible to buy and sell electricity if the electricity generation suddenly stops or if the production increases,” said Adhikari.
“We were only participating in the day-ahead market, so being able to participate in the realtime market is a new experience and achievement for us. Along with the ease of electricity management, a step forward has been taken in the electricity trade between the two countries,” he said.
The Authority has been exporting surplus electricity to India during the rainy season. The NEA has been selling about 110 megawatts of electricity to the Indian company NTPC Vidyut Vyapar Nigam Ltd. (NVVN) through competition in the day-ahead market IEX and as per the mid-term power agreement since some time ago.
The NVVN is selling the power in the state of Haryana.
The Authority has received approval for the export of 632 MW, including 522 MW, to the competitive market and 110 MW to the state of Haryana through NVVN.
Out of this, 562 MW electricity is being exported from Dhalkebar-Muzaffarpur 400 kV cross-border transmission line and 70 MW from Mahendranagar-Tanakpur 132 kV transmission line.
The Authority has exported electricity to India worth Rs. 5.32 billion in the first two months of the current fiscal year.
The NEA exported electricity worth around Rs. 10.39 billion in the last fiscal year 2022/23
