India Considers Increased Power Flow to Nepal Amidst Flood-Induced Deficits

Indian authorities are processing requests from Nepal to facilitate increased power flow. Nepal has sought advance import approvals, effective September, to mitigate generation deficits resulting from recent flash floods. Traditionally, Nepal imports electricity from India during the lean winter months, beginning in October. The recent floods in the Trishuli and Lhende Khola river basins on August 26 caused significant damage to power generation units in Nepal, reducing its domestic generation capacity by approximately 550 MW.

Despite the reduction in Nepal's export capacity to India by about 400 MW from its peak, Indian power ministry officials do not anticipate a need for emergency procurement to balance domestic demand. India's national grid capacity and generation reserve margins are considered sufficient to absorb this temporary shortfall without disrupting grid stability. Major cross-border transmission corridors, such as the 400 kV Dhalkebar-Muzaffarpur link, remain operational. Key projects in Nepal developed by Indian public sector undertakings, including the 900 MW Arun-3 and 669 MW Lower Arun projects, are located in unaffected areas and are proceeding on schedule.

KSEB Seeks Regulatory Approval for Short-Term Power Purchases

The Kerala State Electricity Board (KSEB) has requested ratification from the Kerala State Electricity Regulatory Commission for its short-term power purchase agreements covering September 1, 2026, to May 15, 2027. The procurement process, conducted via the Union ministry of power’s DEEP e-bidding portal, received approval from KSEB’s full-time directors on August 17. A provisional letter of award was issued on August 7, ahead of the bids' expiration on August 9.

The tender resulted in power purchase rates ranging from ₹6.5/unit to ₹12.5/unit. The lowest rate was for round-the-clock power in September, while the highest rates were observed for peak and early-morning time blocks later in the procurement period. For instance, round-the-clock power in April 2027 was priced between ₹6.99-₹7.1/unit. Peak-hour rates (6:30 PM-midnight) reached ₹9.42/unit in November and December, increasing to ₹11/unit in April and May. Rates for the midnight-5 AM block varied from ₹7.7/unit in January and February to ₹10.47/unit in April, with some May bids at ₹12.5/unit.

KSEB attributed the need for these purchases to an anticipated power deficit, scheduled maintenance of generating stations, and increased summer demand. The board is also seeking regulatory approval for the associated additional expenditure and its recovery mechanism.

Xudabao Unit 1 Installs Outer Dome, Advancing Modular Construction

Modular Construction Progress at Xudabao Unit 1

The outer dome, a critical component of the shielded building for Xudabao Unit 1, has been successfully installed. This conical steel dome, measuring approximately 41 meters in diameter and 11 meters in height, has a lifting weight of nearly 1,000 tonnes. Its installation marks a significant step towards completing the unit's large steel structure modules and establishing the foundation for the nuclear island plant structure.

The CAP1000 reactor design, a Chinese adaptation of the Westinghouse AP1000, employs modular construction. This method allows for the fabrication of large structural modules off-site in factories, which are then transported and installed at the construction site. This approach aims to accelerate construction timelines, enhance economic efficiency, and improve quality control by enabling parallel construction activities.

Project Overview and Investment

The Xudabao project, also known as Xudapu, received its construction license for units 1 and 2 in November 2023 from the National Nuclear Safety Administration. Construction of Unit 1 officially commenced later that month. These units will each feature 1,250 MWe CAP1000 reactors. The total investment for Xudabao units 1 and 2 is reported to exceed CNY48 billion (USD6.6 billion).

The Xudabao plant is owned by Liaoning Nuclear Power Company Ltd. The ownership structure includes CNNC with a 70% stake, Datang International Power Generation Company holding 20%, and State Development and Investment Corporation owning 10%. China Nuclear Power Engineering Company Ltd, a subsidiary of CNNC, is the general contractor for the project.

While units 1 and 2 are CAP1000 reactors, the Xudabao site also includes units 3 and 4, which are Russian-supplied VVER-1200 reactors. Construction for these units began in July 2021 and May 2022, with commissioning anticipated in 2027 and 2028, respectively. Two additional CAP1000 reactors are proposed for units 5 and 6. Upon completion, the six-unit project is projected to have a total installed capacity exceeding 7.6 MWe, generating nearly 54 billion kilowatt-hours of clean electricity annually.