Indian govt allows NEA to purchase electricity under free market mechanism through energy exchange market

KATHMANDU : Nepal Electricity Authority (NEA) can now access the Indian market to purchase electricity at competitive prices set by the free market, with the Indian government incorporating the power-utility authority of Nepal as a member of NTPC Vidyut Vyapar Nigam Ltd, India.

According to the NEA, India’s Ministry of Power notified the Nepali authority after approving Nepal’s request for allowing the NEA to be a member of the Indian energy exchange market. “The new development could set a milestone for Nepal as it will also open the access for the landlocked country to carry out energy trade with Bangladesh,” said NEA Executive Director Hitendra Dev Shakya.

Shakya said with the decision of the Indian government, Nepal can now purchase electricity from the market of its southern neighbor. “But, Nepal’s request for allowing its electricity to sell in the Indian market is yet to be decided,” he said.

Nepal is looking forward to selling its surplus energy as per the free market prices in India. Currently, the government has proposed selling the electricity produced by the Upper Tamakoshi (456 MW) and Bhotekoshi Hydropower Project (45 MW) in the Indian market through this mechanism.

According to NEA, after receiving a permit from India, the power utility has immediately started the process to purchase 30 MW of electricity from the Indian market.