Power Exchange Committee Meeting: Electricity to Be Exported via Bihar Grid

A meeting of the Nepal-India Power Exchange Committee is to prepare a modality for power export from Nepal to other states of India through a central transmission line via Bihar grid.

The 14th meeting of the Committee concluded on March 17 in New Delhi, India, decided to prepare the modality of power to be exported by Nepal within a month.

The meeting was co-chaired by the Executive Director of the Nepal Electricity Authority, Kulman Ghising, and member of Power System member of the Central Electricity Authority of India, Ashok Kumar Rajput.

"Both sides will finalize the modality within a month for the same. This has ensured the additional market for the sale of surplus electricity during the rainy season", shared Executive Director Ghising.

Kataiya (Bihar)-Kushaha (Nepal) and Raxaul-Parawanipur 132-KV transmission lines are connected with Bihar.

The meeting as per the Power Exchange Agreement has determined the price of per unit electricity at Rs 11.54 for the fiscal year 2022/23.

The new tariff is not based on the 'Take or Pay' modality, he clarified. "This is the tariff Nepal purchases when in need. Since we only import electricity when needed, the tariff is cheaper than the current Indian market. We don’t get this rate even when we export electricity."

He shared that while making requisition for electricity with India last December, they had proposed that Nepal would purchase electricity from the Indian company through bidding in which the electricity would be procured for Rs 7.50 per unit in February and March and Rs 8.70 per unit in April and May.

Ghising explained that the companies selected in the competition are only allowed to sell electricity produced from imported coal to Nepal, and due to fluctuating price of coal, the Indian company was not adamant to ink an agreement with the Authority even at the proposed tariff.

According to him, the system of imported coal was not applicable in Bihar State. Hence the rate of electricity has become cheaper. The average price of electricity per unit in the competitive market is 12 IC. "An additional 1.5 IC is added to this tariff including transmission charges. Hence, the rate fixed at present is cheaper than others."

The meeting decided that a modality will be fixed within a month for Nepal to import electricity to Bihar. "With this, the market for Nepal's surplus electricity has been assured,' remarked Ghising.

Nepal imports electricity from India when need through Power Exchange Agreement and as per the Mahakali Treaty as well as through competition. Electricity is being imported to Nepal through Dhalkebar-Muzzafarpur cross-border 400 KV double circuit transmission line and other transmission lines.

The Authority traded surplus electricity worth Rs 8.4 billion to India from the beginning of the current fiscal year 2022/23 to the date.