Export of electricity worth Rs 2 Billion in single month, Rs 7 Billion profit in 4 month

Nepal has exported electricity worth Rs 2 Billion 420 million to India in the second month of the current financial year 2079/80.

Nepal Electricity Authority has exported 246 million 500 thousand units of electricity that could not be consumed in the country and earned 2 billion 416 million 782 thousand rupees in August.

The Authority had started selling the surplus electricity that remains after the consumption within the country through competition in the day-ahead market of Indian Energy Exchange Limited from 2 June.

In the beginning, 39 megawatts of electricity produced by two power plants were considered a source and sold to IEX daily. And then since the 10th of June, 364 megawatts of electricity produced by 6 hydropower plants have been sold daily in the Indian market at a competitive rate.

The Authority has earned above 7.19 billion rupees by selling 780 million 78 thousand units of electricity in the Indian market in May, June, July, and August. Since the electricity trade with India is done in Indian rupees, during the period of 4 months, Nepal has received 4.49 billion 91 million Indian Rupees from the sale of electricity.

Only in August, an income of Rs 1.51 billion has been earned from the sale of electricity.
Kulman Ghising, executive director of the Electricity Authority of Nepal, said that the amount received from the increase in electricity export every month is contributing to Nepal's foreign exchange reserves and reducing the trade deficit between the two countries.

"In the current year, we have set a target of earning about 16 billion rupees from electricity export," said Executive Director Ghising."Now that the festival is about to start, the internal consumption will decrease a bit when the industrial factories are closed, but since our production will be at full capacity, we have sent a proposal for approval for the export of about 200 megawatts of electricity. We are confident that the Indian side will give approval for the export of more electricity soon. '

In IEX, 24 hours is divided into 96 blocks of 15/15 minutes, and electricity is traded at competitive rates set by the market. So the price of each block is different. The average rate of electricity exported by the authority in August is 9 rupees 80 paise per unit. The four-month average rate is Rs 9.23 paisa per unit.