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Nepal has allowed its energy authorities to trade electricity with Indian and Bangladesh, according to the Himalayan Times.
The government recently gave the go-ahead to the Nepal Electricity Authority (NEA) to this effect, it said.
The Nepalese media reported that it is mandatory for the NEA to get the approval of the government for inter-country electricity trade.
"…the cabinet meeting on Monday gave the approval to sell electricity to India and Bangladesh when the domestic production was high and to import electricity from the neighbouring countries when the production was low," the report quoted energy, water resources and irrigation minister Barshaman Pun.
With the government's consent, the NEA will now be able to buy and sell electricity at competitive prices, disclosed the leading Nepalese daily. "Like trade in goods, electricity trade has also been approved in real time," Mr Pun was quoted as saying.
He said the NEA was given permission for inter-country trade so that it could keep a record of electricity trade and price, the report mentioned.
It has also been given approval for electricity trade so documents can be exchanged electronically. The NEA has been preparing for short-term sale of electricity in India's energy exchange market for a long time, according to the newspaper.
In the energy exchange market of India, similar to shares, electricity can be bought and sold in real time, it reported.
The NEA has designated Indian NTPC Vidyut Vyapar Nigam Ltd as its nodal agency to represent it in the market.
With the approval of the government, according to the report, it will be able to trade electricity in India and Bangladesh in real time.
This will make it easier for the NEA to sell power to India or Bangladesh immediately when there is surplus at night or in the afternoon, it mentioned.
As per the agreement with the government, the NEA is exchanging electricity with the bordering Indian states when needed, said NEA managing director Kulman Ghising.
The NEA can now trade electricity in any state of India, the cited report as saying.
According to energy secretary Dinesh Ghimire, the government's nod has come at a time when Nepal's power generation is increasing, it mentioned.
Cabinet approval means the NEA will be able to trade electricity with the two countries by fixing prices on the basis of competition, it added.