Nepal-India Power Trade Soars: A New Era for Green Energy with Arun III
Kathmandu, Nepal – A significant milestone has been reached in cross-border energy cooperation between Nepal and India, as a new agreement solidifies the trade of electricity from the Arun III hydropower project. This strategic move underscores the growing demand for clean energy and the collaborative efforts to meet regional power needs.
Landmark Power Purchase Agreement for Arun III
Satluj Jal Vidyut Nigam (SJVN), an Indian government-owned entity, has officially sealed a power purchase agreement (PPA) with the Uttar Pradesh Power Corporation Limited (UPPCL). This crucial agreement facilitates the supply of electricity generated by the 900 MW Arun III hydropower project, currently under construction in Nepal’s Sankhuwasabha district. The project is a beacon of green energy, poised to contribute substantially to India’s electricity grid by 2028.
SJVN’s Broader Vision for Sustainable Energy
Beyond the Arun III project, SJVN is actively expanding its green energy footprint. The company has also signed PPAs with UPPCL for the electricity output from its upcoming 210 MW Luhri Stage-I and 382 MW Sunni Dam hydropower projects, both located in Himachal Pradesh, India. These Indian projects are collectively expected to inject an additional 592 MW of green energy into the national grid, producing an impressive 2140 million units of electricity annually. Both the Luhri Stage-I and Sunni Dam projects are slated for operation by December 2028, aligning with the timeline for Arun III.
Furthermore, demonstrating its commitment to diversified energy supply, SJVN has entered into another power purchase agreement with the New Delhi Municipal Council specifically for the electricity from its 382 MW Sunni Dam hydropower project.
Driving Regional Energy Security and Sustainability
These agreements are pivotal for enhancing regional energy security and promoting sustainable development. By harnessing hydropower resources, Nepal and India are not only addressing their escalating electricity demands but also championing the cause of clean energy. The influx of 900 MW from Arun III, alongside the contributions from Luhri Stage-I and Sunni Dam, will significantly bolster India’s renewable energy capacity, leading to a more resilient and environmentally friendly power infrastructure.
This collaboration highlights a promising future for Nepal-India electricity trade, paving the way for increased investment and shared prosperity in the renewable energy sector.
