Nepal To Export 1,000 MW Of Electricity To India Through Hydropower Amid Talks
This will mark the first time the nation will supply power to Bihar under a medium-term sales agreement.
Source: Envato
India has allowed Nepal to export an additional 251 MegaWatt of electricity from 12 hydropower projects to the country, an official statement from the Indian Embassy in Nepal said on Monday.
This will mark the first time the nation will supply power to Bihar under a medium-term sales agreement.
With this, Nepal would be exporting 941 MW of hydropower from 28 projects as compared to the 690 MW of electricity from 16 projects, it was exporting.
External Affairs Minister S Jaishankar described Nepal's decision to export the electricity to India as a "new milestone". This was during holding comprehensive talks with his Nepalese counterpart Arzu Rana Deuba. The talks also focused on boosting cooperation in areas of trade, connectivity and infrastructure.
Deuba began her five-day trip to India on Sunday in her first official trip abroad after assuming the responsibility.
"Discussed the multifaceted India-Nepal cooperation including in energy, trade, connectivity and infrastructure development," Jaishankar said on 'X'.
"Glad to note that Nepal will be exporting close to 1000 MW of electricity to India, a new milestone," he said.
"Our Neighbourhood First policy and unique people-to-people & cultural connect propels our relationship forward," he added.
On her part, Deuba described the talks as "productive".
"Had a productive meeting with @DrSJaishankar in New Delhi. We discussed bilateral interests, various aspects of Nepal-India relations, and the exchange of mutual cooperation, she said on 'X'.
"I am confident this visit will further strengthen the centuries-old bond between Nepal and India," Deuba said.
The Nepalese foreign minister's visit comes a week after Foreign Secretary Vikram Misri travelled to Kathmandu.
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 NPR 16.93 billion worth of electricity, the statement said.
In October 2021, New Delhi approved 39 MW of electricity exports from Nepal to India for the first time, it said, adding that in less than three years, this figure has grown by more than 24 times.
Nepal first started its power exports by selling in the Day Ahead Market of the Indian Energy Exchange. Since then, India has also granted access to the Real-Time Market.
Nepal Electricity Authority has also entered into medium-term power sales agreements with discoms in Haryana and Bihar.
India has also opened the provision of counting hydropower imports from Nepal as a part of the Hydropower Purchase Obligation (HPO) for buyers in India, which further incentivises buyers to purchase power from Nepal.
The country shares a border of over 1,850 km with five Indian states -- Sikkim, West Bengal, Bihar, Uttar Pradesh and Uttarakhand. Land-locked Nepal relies heavily on India for the transportation of goods and services.
An agreement for the sale of 40 MW of power to Bangladesh has also been finalised and was planned to be signed on July 28 but postponed due to the recent political developments in Bangladesh.
