Nepal Power Exchange Ltd (NPEL) has signed a memorandum of understanding with Indian company Manikaran Solar Ltd for energy trading.
As a result, NPEL can now sell electricity to India, through Manikaran Solar Ltd. NPEL, it is learnt, becomes Nepal’s first private sector entity to sell electricity to India. Hitherto, all such export of electricity from Nepal to India was done through the Nepal government-controlled Nepal Electricity Authority (NEA).
Nepal Power Exchange Ltd is a corporate entity promoted by private sector body Independent Power Producers’ Association (IPPAN) that promotes and encourages electricity-related developments in the hilly nation.
It may be mentioned that various notifications issued by the Indian government on cross border electricity trade (CBET) have paved the way for countries like Nepal to participate in the Indian electricity market. Central Electricity Regulatory Commission (CERC) notified CBET regulations in 2019 and Central Electricity Authority (CEA)
In fact, Nepal, in April 2021, became the first country to participate in then newly-launched “Cross Border Electricity Trade (CBET)” platform of Indian Energy Exchange. (read more)
Media reports suggest that following NPEL’s agreement to sell electricity to India, many private sector companies in Nepal can potentially follow suit. Also, for Nepal, that is fighting a surge in imports and depletion of its foreign exchange reserves, selling electricity to electricity-starved countries like India can provide fiscal stability.
