By TRN Online, Kathmandu, Mar. 24: Nepal Electricity Authority (NEA) is purchasing electricity at the rate of Rs. 38 per unit from India so as to avoid load shedding in the country.
Kulman Ghising, NEA executive director, informed at a press meet held today that the NEA has registered a bid to import electricity from India which will result in a loss of Rs. 29 per unit for the NEA. The new price will come into effect from today, Thursday midnight.
Ghising said that the electricity price in India had increased due to a shortage of coal to produce electricity following the Russia-Ukraine war and that Nepal was compelled to purchase electricity as per the increased price.
Although hydropower makes up the main source of electricity in Nepal, many other countries produce almost 70 per cent of electricity from coal.
At present, the demand for electricity in Nepal is 1650 megawatt while peaking production in 24 hours is about 1400 megawatt, according to the NEA.
Unlike last year when Nepal was purchasing some 800 megawatts of electricity from India, this year only 350 megawatts is being imported, which is less than 30 per cent of total consumption.
The NEA executive director made it clear that the consumer will get electricity at the existing price, Rs. 9 per unit, although the NEA will be purchasing some amount of electricity at Rs. 38 per unity.
The loss for NEA due to the difference in purchasing and selling cost of the electricity per unit is estimated to be eight billion rupees.
The NEA has said it will have to import electricity from India for one and a half months more.
Nepal's total hydropower generation is estimated to be 2,000 megawatts by mid-June. NEA has a target to export 500-megawatt hydropower to India after mid-June, and a process has been initiated to sell up to 800 megawatts to India.