KATHMANDU: India has taken a fresh step to integrate Nepal's electricity with its market by allowing Nepal to sell its power generated by two hydroelectric projects to its real-time energy market.
It is the first time that Nepal has got approval to sell its power in the Real Time Market (RTM) where, according to the Nepal Electricity Authority, which is solely responsible for bilateral trade of electricity to date, Nepal can sell power by participating in bids just one hour and 15 minutes earlier than selling the power.
The Central Electricity Authority of India on Saturday granted approval to sell power generated from 19.4 MW Lower Modi and 24.25 MW Kabeli B-1 hydropower projects in RTM, the NEA said in a press statement on Saturday.
"The approval has been granted to sell starting from October 1 or Saturday midnight," Prabal Adhikari, power trade director of NEA, told India Narrative. "With this approval, Nepal has also become the first country to participate in India's RTM from South Asia."
By amending the 'Procedure for Approval and Facilitating Import/Export (Cross Border) of Electricity by the Designated Authority' issued in February 2021, the southern neighbour, on July 31, had opened the door for Nepal, Bhutan, and Bangladesh to participate in its real-time energy market.
India first opened its energy exchange market for Nepal in November 2021 by allowing the Himalayan country to sell its power in the day-ahead market, where the quantum of power and prices are determined a day ahead of trading. The southern neighbour has also started buying power from Nepal under a medium-term, five-year power deal starting in early September.
In the day-ahead market, Nepal has been allowed to sell up to 522 MW, while the Himalayan country has been selling 110 MW in Haryana state through NTPC Vidyut Vyapar Nigam Limited [NVVN], under a five-year deal signed in May, according to NEA.
Now, New Delhi has started granting approval to sell Nepal's power through the third option, i.e., RTM. "Having multiple options for trading minimises the risks," said Adhikari.
After this approval, the NEA planned to sell a partial quantum of the approved volume of power in the RTM. "Initially, we will sell a limited volume of power in RTM," said Suresh Bhattarai, spokesperson of the NEA. (IANS)
Also Watch: