KATHMANDU, Nepal - According to the Nepal Electricity Authority (NEA), India has finally allowed Nepal to sell electricity generated by two hydropower projects in its real-time energy market beginning Saturday midnight.
On July 31, India amended the 'Procedure for approval and facilitating import/export (cross border) of electricity by the designated authority' issued in February 2021, allowing Nepal, Bhutan, and Bangladesh to participate in its real-time energy market.
India has granted project-level approval for the first time, allowing Nepal to begin selling power in India's Real-Time Market (RTM). "Nepal is the first country from South Asia to participate in the RTM," said Prabal Adhikari, power trade director at the Nepal Electricity Authority.
According to the NEA, in the first phase, the Central Electricity Authority of India allowed the trading of 44 MW of electricity generated by the 19.4 MW Lower Modi and 24.25 MW Kabeli B-1 hydropower projects in the real-time market.
According to Adhikari, approval has been received for the sale of electricity generated by two projects in both the day-ahead and real-time markets.
"Earlier, we had to wait for a day to import and export electricity," Adhikari stated. "We will now be able to trade by bidding one hour and fifteen minutes before the sale."
The approval has made it possible to buy and sell power in the event of a sudden halt or increase in electricity generation."
NEA officials say participation in the RTM is critical for properly managing electricity demand and supply. "It helps the power system operators to balance the power supply when demands are volatile," Adhikari stated.
With real-time market access, Nepal can sell more than the previously estimated quantum if generation suddenly increases.