For the first time in the history Nepal’s electricity officially entered the Indian market.

Due to the continuous diplomatic efforts of the government India is ready to purchase electricity wasted during the rainy season.

Minister for Energy, Water Resources and Irrigation Pampha Bhusal’s discussions with the concerned bodies, bilateral and multilateral dialogue at the ministry level and diplomatic initiatives have been meaningful.

As per the agreement reached during the last visit of Prime Minister Sher Bahadur Deuba to India, about 360 MW of electricity has been paved to enter the Indian market during the coming monsoon. This will allow the electricity wasted during the rainy season to enter the Indian market and will also provide additional assistance to Nepali investors in exploring and expanding the market.

The government has already given permission to the subsidiary company of Nepal Electricity Authority to trade electricity. The private sector is also seeking permission to supply electricity to the regional market.

Nepal Power Exchange Limited (NEPEX) is also being set up by Independent Power Entrepreneurs Association of Nepal (IPPAN) to sell electricity. But the company has not yet received permission from the government. In a program organized on Monday, Minister Bhusal has already signaled to issue a new Electricity Act and pave the way for the sale of electricity through an ordinance.

According to the NEA, about 500 MW of electricity was wasted in the last monsoon alone. Its market value was about Rs. 5 billion. During the last visit, the Indian side stated that they are ready to use and purchase the electricity that is being stored in Nepal. The government understands that the impact of Nepal’s entry into the Indian market will be strategic.

According to Ganesh Karki, Vice President of IPAN and a member of the visiting delegation of the Prime Minister, the level of agreement reached by the Indian side this time indicates that golden days are coming in Nepal’s energy sector.

Another important aspect is to increase bilateral cooperation in the energy sector on the basis of equality, to jointly develop hydropower projects, and to develop cross-border transmission lines.

Nepal had been demanding the export of about 800 MW of electricity. According to the Ministry of Energy, paving the way for exports up to 360 MW is an achievement in itself as it intends to increase consumption internally and gradually expand while exporting.