October 1: The Nepal Electricity Authority (NEA) has received permission from India for the first time to sell electricity in the real time market of India's Energy Exchange (IEX).
Until now, the NEA had been selling electricity in India’s competitive energy market by bidding a day ahead. But now onwards, NEA will now be allowed to sell electricity by bidding just 1 hours and fifteen minutes in advance.
The Central Electricity Authority under the Ministry of Electricity of India gave permission to NEA to sell electricity in the real time market on Saturday.
On 31 July, the Ministry of Electricity of India amended the procedures of the bodies designated for the approval and facilitation of electricity import/export (cross border) and made arrangements to allow the authorized bodies of the neighboring countries to participate in the real time market.
In the first phase, the Central Electricity Authority of India has approved the sale of around 44 MW of electricity generated by the 19.4 MW Lower Modi and 24.25 MW Kabeli B1 hydropower projects in the real time market.
The electricity of both these projects was being sold in the day-ahead market. The permission given to the day-ahead market was ending on Saturday. Prabal Adhikari, Director of Electricity Trading Department of the NEA said that India has granted permission for the sale of electricity generated by the two projects in both day-ahead and real time markets. Now the electricity of the two projects can be sold a day ahead and also as per the need in the real time market.
“Earlier, we had to wait for a day to import and export electricity in the competitive market, but now we are able to bid and do business 1 hour fifteen minutes in advance. This has created a situation where we can buy and sell electricity if the electricity production suddenly stops or if the production increases,” said Adhikari.
NEA has been exporting surplus electricity of 110 MW in the rainy season to the Indian company NTPC Vidhyut Vyapar Nigam Limited (NVVN) through competition in IEX's day-ahead market and recently under a mid-term power agreement. NVVN is selling the electricity in the state of Haryana.
The NEA has received approval for the export of 522 megawatts of electricity in the competitive market and 110 megawatts to Haryana for a total of 632 megawatts. Out of this, 562 MW of electricity is being exported through the Dhalkebar-Muzaffar 400 KV transmission line and 70 MW from Mahendranagar-Tanakpur 132 KV transmission line.
NEA exported electricity worth Rs. 5.43 billion from mid-July to mid-September of the current financial year.