India processes Nepal's power import requests after flash floods damage generation

Synopsis

India is processing requests for increased power flow to Nepal. Nepal seeks advance import approvals effective September due to flood damage. Flash floods caused significant infrastructural damage to Nepal's power generation units. India's national grid capacity can absorb the temporary shortfall seamlessly. Major cross-border transmission corridors remain operational and projects continue on schedule.

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New Delhi: Indian authorities are processing requests to facilitate increased power flow to Nepal in accordance with established frameworks, including trade through the day-ahead market and the real-time market segments of Indian power exchanges, people aware of the development said.

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Nepal has sought advance import approvals effective September to mitigate generation deficits caused by recent flash floods, one of the people said. The request is for importing electricity earlier than usual-Nepal traditionally imports electricity from India during the lean or winter months starting October, the person added.

India will provide power to Nepal as per their needs, the people cited earlier said. India also imports power from Nepal. While the flash floods in the Trishuli and Lhende Khola river basin on August 26 caused severe infrastructural damage including to power generation units in Nepal, the impact on India's national power grid is minimal and fully manageable, said industry executives.

Nepal's domestic generation capacity has fallen by around 550 MW due to the damaged facilities, an executive said. Cross-border power flow to India is currently reduced by around 400 MW from its previous peak export levels of around 950-1,000 MW, the executive said.

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"We do not foresee any requirement for exceptional emergency procurement or alternative arrangements to balance domestic demand (because of the shortfall)," a power ministry official said. "India's vast national grid capacity and robust generation reserve margins are capable of absorbing a temporary shortfall of 400 MW seamlessly without disrupting grid stability or retail supply."

Major cross-border transmission corridors, such as the high-capacity 400 kV Dhalkebar-Muzaffarpur link, with a transfer capacity of 1,000 MW, remain operational, the industry executive cited earlier said.

Key projects developed by Indian public sector undertakings in Nepal, including the under-construction 900 MW Arun-3 and 669 MW Lower Arun projects in the Arun River basin, are located in an unaffected area and continue on schedule without disruption, said the people.