Could India Become a Perennial Market for Nepali Electricity?

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Electricity demand in India is projected to double over the next decade. According to the energy plan of India’s Central Electricity Authority (CEA), peak electricity demand will reach 459 gigawatts in 2035–36. On 19 Poush 2080, Nepal and India signed an agreement to export 10,000 megawatts of electricity over 10 years. 

These two facts show that India offers a large market for Nepali electricity. However, Nepal cannot take it for granted that India will remain a permanent market for Nepali power. The reason is that India is not only expanding its own generation capacity to meet growing electricity demand, but is also investing heavily in solar, wind, hydropower and energy storage. Energy-sector experts say Nepal must accordingly change its strategy for generation, transmission and electricity trading.

The private sector has already invested Rs 1.31 trillion in 923 hydropower projects. The infrastructure of transmission lines under construction in Nepal is also geared toward India. . Energy-sector experts say India’s rapid expansion of renewable energy, including solar, could put pressure on the market for Nepali hydropower in the future.

“The world will not wait for hydropower to meet its energy needs. Therefore, we must accelerate generation now,” said Ashish Garg, former vice-president of the Independent Power Producers’ Association, Nepal (IPPAN). “We cannot sit back complacently because we have licences for 30 or 35 years. Nepal is sleeping like Kumbhakarna while the rest of the world has moved far ahead!” 

Source: Wikipedia