NEA Announces Tender Bids to Sell 200 MW Electricity in India

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NEA Announces Tender Bids to Sell 200 MW Electricity in India

May 8: Nepal Electricity Authority (NEA) is planning to sell 200 MW of electricity to India in the upcoming rainy season. NEA said it is going to sell the electricity to India through tender bids. Currently, NEA has imposed load shedding in the industrial sector at present due to lack of adequate electricity generation during the dry season.

But with the onset of monsoon, NEA will sell 200 MW of electricity generated from various hydropower projects to India. It has published a tender notice on Friday calling for the Indian Electricity Trading Company to submit its proposal.

NEA is going to sell the same amount of electricity to India for four and a half months (July 1 to November 15, 2022). The pre-condition is that the interested companies should submit a proposal to purchase at least 50 MW of electricity. No limit has been set for the rate of purchase and sale of electricity. The authority said that the company which proposes the highest rate in the tender will be selected.

If the tender is successful, NEA will start exporting electricity to India commercially for the first time. Earlier, electricity was being exported to India as electricity exchange or energy banking. NEA has received approval to sell 364 MW of electricity from 6 different hydropower projects in Nepal to India.

Out of this, tender has been invited to sell 200 MW at fixed price. NEA will be able to sell the electricity in the Indian open electricity market (Day Ahead Market) by bidding daily.

NEA has already received permission to buy and sell electricity from the Indian open electricity market. As per the approval, NEA will be able to buy and sell electricity in the Indian market by bidding on a daily basis. When buying and selling electricity in this way, the selling price will be different every day. In addition, electricity can be bought and sold at a fixed price through tender. NEA is currently importing electricity from India's open market through daily bids.

NEA Executive Director Kulman Ghising said that the process of selling 200 MW of electricity in India through tender has been moved forward. "We have already got permission to sell 364 MW of electricity in the Indian market. We are going to sell 200 MW through tender,” he said.

Currently, the NEA is struggling to purchase electricity from the open market of India as per the demand. Coal is major source of electricity in India. Due to the recent shortage of coal in the wake of Russia-Ukraine tensions, India's power generation has been reduced and load shedding has started. As a result, NEA has not been able to get electricity from India. In order to manage the supply of electricity, NEA has started load shedding in the industrial sector across Nepal.

 

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