The Nepal Electricity Authority (NEA) has taken a significant step in its energy trade relations with India by starting to export electricity to Bihar for the first time. This initiative is part of Nepal’s broader efforts to leverage its surplus electricity and boost revenue.
The trade marks a new milestone in the energy cooperation between Nepal and India, particularly Bihar, a state in need of energy resources to support its growing demands.
Electricity Export to Bihar Begins
For the first time in history, Nepal has begun exporting electricity to Bihar, with an initial supply of 40 MW, according to Chandan Ghosh, the spokesperson of the NEA.
The power transfer is taking place through the Kataiya-Kushwaha transmission line, marking the start of a strategic energy partnership with the neighboring Indian state.
This milestone is part of a broader mid-term agreement between Nepal and India, facilitated through the Power Trading Corporation (PTC) of India. Ghosh stated that the agreement allows Nepal to export a total of 125 MW of electricity to Bihar, although the current phase involves the transmission of just 40 MW.
Ghosh added, “We will gradually increase the quantum over time,” signaling plans for progressive growth in electricity exports to meet the agreed capacity of 125 MW. The NEA aims to increase the amount of electricity transmitted to Bihar in stages, reflecting Nepal’s intention to tap into India’s massive energy market.
Nepal’s Expanding Energy Trade with India
Nepal’s electricity export to Bihar is only a fraction of the total energy being exported to India. The NEA currently exports about 620 MW of electricity to India on a daily basis, solidifying Nepal’s position as a key player in regional energy trade.
This development not only enhances bilateral trade relations but also offers Nepal an opportunity to stabilize its economy through energy exports.
Last year, Nepal achieved significant success in the electricity trade, earning Rs. 17.06 billion by selling surplus electricity to India. This revenue showcases the potential profitability of leveraging Nepal’s abundant hydropower resources, a critical aspect of the country’s economic strategy.
While Nepal exported a substantial amount of electricity to India in the previous year, it also imported power worth Rs. 16.93 billion from India. Despite this import, the country managed to achieve a small trade surplus of Rs. 130 million in the electricity sector. This balance reflects Nepal’s growing self-sufficiency in energy production and its capacity to contribute to the regional power grid while reaping financial benefits.
A Step Toward Regional Energy Collaboration
The power export to Bihar signifies more than just a trade agreement between two neighboring countries. It is a step toward strengthening regional energy cooperation, which has the potential to enhance economic integration in South Asia.
With India’s growing energy demands, particularly in states like Bihar, Nepal’s hydropower resources can play a crucial role in stabilizing energy supplies in the region.
The collaboration between Nepal and India also aligns with broader goals of sustainable energy development. Hydropower is a renewable energy source, and its expanded use can contribute to reducing reliance on fossil fuels, promoting clean energy, and mitigating the effects of climate change in the region.
Looking ahead, the NEA is expected to ramp up efforts to enhance its energy exports, not only to Bihar but also to other states in India, depending on the success of the current deal. By doing so, Nepal stands to benefit economically and position itself as a key energy supplier in South Asia.
Nepal’s move to export 40 MW of electricity to Bihar marks the beginning of a new chapter in the country’s energy trade history. Through this export, Nepal continues to showcase its capability to leverage its vast hydropower resources for economic gain.
The partnership with Bihar is just the start, with plans to expand the supply to 125 MW, contributing to a stronger bilateral energy relationship between Nepal and India. With continued exports, Nepal is poised to play a central role in the region’s clean energy future, while bolstering its own economy in the process.
