Nepal sells nighttime power to India at INR 4 per unit

KATHMANDU: Nepal Electricity Authority (NEA) Managing Director Hitendra Dev Shakya has revealed that Nepal is currently selling electricity to India at INR 4 per unit during nighttime hours.

Speaking to journalists on Sunday evening after inspecting power supply issues under the No Light branch in Kuleshwar, Shakya explained the strategic approach behind the power trade.

“We are taking advantage of ultra-cheap electricity prices in India during daytime and selling our stored hydroelectric power at a higher rate at night,” he said.

According to him, daytime electricity prices in India have dropped significantly in recent days, sometimes as low as INR 0.50 per megawatt-hour—equivalent to less than 1 paisa per unit. “During those hours, we import as much electricity as possible from India and conserve water in our reservoirs like Kulekhani, Marsyangdi, Kaligandaki, and Upper Tamakoshi,” he said. “We then use this stored water to generate power during peak evening hours.”

Shakya stated that Nepal does not need to import electricity from India during peak load times, thanks to sufficient water levels in local rivers. “After 9 PM, we are exporting electricity generated from reservoir-based projects to India at INR 4 per unit. This means we buy it for as low as 1 to 1.5 paisa per unit and sell it at a much higher rate,” he added.

On Saturday alone, Nepal imported 2,500 megawatt-hours of electricity and exported 1,300 megawatt-hours. Although the volume of exports was lower, the NEA is making a profit due to the significant price difference, he said.

This trading strategy will continue as long as river flow during the day remains high enough that water cannot be stored, Shakya mentioned. “Once the river flow stabilizes and allows for more efficient storage, we will reduce imports and continue selling power at night,” he explained.

He also announced that starting June 15, Nepal will begin 24-hour electricity trading with India under a five-year agreement at a fixed rate, ensuring stable revenues regardless of market fluctuations.

Shakya further clarified that, except for last Wednesday and Thursday, there have been no major power supply issues.

He accused some parties of spreading misinformation and hiding facts about the actual power situation.