A landmark bilateral meeting in Pokhara has unlocked pathways for Nepal to import 350 MW electricity from India’s Bihar, Uttar Pradesh, and Uttarakhand, fortifying supplies against winter deficits. This Power Exchange Committee decision arrives at a crucial juncture for Nepal’s energy needs.
Run-of-the-river hydropower dominates Nepal, thriving in rains for India-bound exports but sputtering in dry seasons. To bridge the gap, PEC members NEA and CEA settled on escalated tariffs: 1.5% up, fixing NPR 8.22/unit (132 kV), 8.91 (33 kV), and 9.55 (11 kV) for 12 months.
Nepal’s MD Hitendra Dev Shakya and India’s Vijay Kumar Singh drove the negotiations. Shakya noted the conditional hike applies only to PEC purchases; cheaper power exchange options remain primary, with PEC as backup up to capacity limits.
Imports hover at 12,000-14,000 MWh/day, set to surge in high-demand dry months. Regional energy markets face headwinds from Israel-Iran strife and West Asian unrest, underscoring the deal’s strategic value.
This pact averts potential crises, bolsters economic continuity, and exemplifies robust neighborly collaboration. Looking ahead, it lays groundwork for expanded exchanges, ensuring energy security in an unpredictable world.