Nepal Electricity Authority (NEA) has invited proposals to import 100 megawatts of electricity for the upcoming April and May, but no application has been received from Indian companies. The NEA had invited proposals to import electricity 24 hours a day for the upcoming April and May. However, the NEA's Executive Director Hitendra Dev Shakya said that no proposals have been received.

The NEA had issued a notice on February 13 asking for proposals to be submitted by February 22. On February 21, the NEA had also extended the time by 5 days. However, Shakya says that no proposals have been received even during the extended period. The NEA's condition was that the per-unit rate of electricity purchased from April 1 to May 31 should not exceed Rs 6.90.

The NEA has been importing electricity from India to meet domestic demand as electricity production is low during the winter. The NEA had invited proposals saying that it would purchase electricity through open competition. Earlier, the NEA had invited proposals on January 19 to purchase 100 megawatts of electricity from India for this dry season. The NEA had sought proposals not exceeding Rs 6.60 per unit from February to March and Rs 6.90 per unit for April and May. Although a notice was issued asking for applications by January 28, no proposals were received at that time.

The NEA board meeting held on December 15, chaired by the then Energy Minister Kulman Ghising, had decided to give 10 days to purchase 100 MW of electricity through open competition during the dry season and, if necessary, through public notice, seek sealed quotation proposals from Category 1 Indian traders (trading companies) with the consent of the commission. The NEA had sought proposals as per the same decision.

Even though the NEA has issued a second notice to import electricity for the same dry season, it is estimated that load shedding may occur if no proposals are received. Since the demand cannot be met from domestic production, even though attempts are made to import electricity, no proposals have been received. Therefore, experts say that load shedding may occur as the dry season increases. But NEA Executive Director Shakya claimed that there is no risk of load shedding as it is covered by domestic production and imports.

NEA has been allowed to import 600 MW of electricity through the Dhalkebar-Muzaffarpur 400 kV transmission line and 54 MW from Tanakpur-Mahendranagar at competitive rates. The Central Electricity Authority under the Ministry of Power of India has renewed the permission to import electricity from the IX's day-ahead and real-time market (RTC). The permission has been renewed only until Chaitra 17. After that, Nepal will be able to import only if India renews it again. Nepal has been purchasing electricity through competition in the IX's day-ahead and real-time market. Accordingly, 'bidding' with price and quantity takes place the day before the purchase.

Shakya said that it has been requested to renew it so that electricity can be imported around the clock. ‘India had renewed this time only a few days ago, and now it is said that it will renew it before it expires,’ he said, ‘We are urging India to renew the permission so that electricity can be imported round the clock.’

The Authority has been buying 180 megawatts of electricity at Rs 6.95 per unit through the power purchase agreement between the Authority and Power Trading Company (PTC India). The Authority will be able to buy 180 megawatts of electricity round the clock through the said agreement until May. Currently, the Authority is buying 654 megawatts at a competitive rate during the winter, 180 megawatts through the PTC agreement, and additional electricity as required through the Nepal-India Electricity Exchange Committee (PEC).

The rate of electricity imported through PEC has already been fixed for 2025. The Authority has stated that the price of electricity exchange through the 132 kV transmission line for 2025 has been fixed at Rs 8.1 (Rs 12 96 paisa) per unit.

The price of electricity generated through the 33 kV transmission line has been fixed at 8.78 rupees (14 rupees 04 paisa) per unit and the price of electricity imported and exported through the 11 kV transmission line has been fixed at 9.41 rupees (15.05 rupees). ‘A new meeting of the PEC has not been held for the year 2026. The authority has said that the price fixed for 2025 will be effective until next March.

Only a maximum of 350 megawatts of electricity can be imported through the PEC. Shakya says that there is no risk of load shedding, saying that there are currently various means to import electricity from India. ‘We can import 654 MW through IX, 180 MW through PTC and 350 MW through PEC. Buying electricity from PEC is more expensive than others, so we buy only as needed,’ said Shakya. ‘Even if IX is not renewed, there is an agreement for 180 and 350 MW.’

Shakya said that the domestic electricity demand will be met by operating semi-reservoir hydropower projects like Tamakoshi, Madhyamarsyangdi, Kaligandaki, Kulekhani during ‘peak hours’ as needed. ‘We can operate hydropower projects like Chilime, Sanjen, and Tallo Sanjen during 1-hour peaking,’ he said, ‘so we don’t have a problem.’