According to NEA, its electricity sales generated Rs 1.72 billion revenue in June.
Kathmandu: According to the state-owned power utility organization on Friday, the Nepal Electricity Authority sold 178.19 million units of electricity at the Indian Energy Exchange Limited for a net profit of Rs1.72 billion.
According to a news release from the NEA, the average price it received for the electricity sold in June was Rs9.67 per unit.
From June 2 of this year, the power utility began selling power in the Indian market.
It initially sold 37.7 MW from the 15MW and 24MW Trishuli power stations. Sales of electricity in the Indian market gradually grew as a result.
On June 10, it began selling the entire 364MW of authorized electricity to India via the southern neighbor’s power exchange market.
Currently, the state-owned utility is selling 51MW from Likhu-4, which was produced by the private sector, 37.7MW from the Trishuli and Devighat plants, 140MW from the Kaligandaki Hydropower Project, 68MW from Middle Marsyangdi, 67MW from Marsyangdi, and 67MW from the NEA-built Marsyangdi.
In the IEX, where the power is exchanged in 96 blocks of 15 minutes each, 24 hours a day, electricity is sold at competitive market rates.
According to NEA, it received the highest average rate on June 15 of Rs. 15.93 per unit and the lowest average rate on June 21 of Rs. 4.92 per unit.
The day-ahead market on the IEX is where NEA sells its electricity. In the day-ahead market, bidding is used to decide prices for the following day.
In November of last year, Nepal became the first country to sell electricity on the IEX, but due to a decline in domestic power production over the winter, the nation had to import electricity from the same market.
The amount of electricity sold in June and the revenue generated from it, according to the NEA’s news release, indicate that trading of electricity with India has been proceeding without any major issues.
At a time when the nation’s foreign currency reserves are running low, he continued, “We have been able to generate foreign money by selling excess power in India. Additionally, this will aid in reducing the trade deficit with India and help to improve the balance of payments.
NEA plans to make Rs 5 billion this fiscal year 2021–2022 and Rs 20 billion the following fiscal year 2022–2023 by selling excess power to India.
As a result of the IEX’s unpredictable rates, NEA decided to abandon its plan to sell 200 MW of electricity to India under a long-term power purchase agreement. This decision was made as part of a risk-diversification strategy.