Nepal has exported electricity worth NPR 15 billion (approximately INR 9.37 billion) since the beginning of the fiscal year 2025–26 in mid-July
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KATHMANDU — Nepal has exported electricity worth NPR 15 billion (approximately INR 9.37 billion) since the beginning of the fiscal year 2025–26 in mid-July, as electricity continues to emerge as one of the key export commodities of the Himalayan republic.
In a press statement, the Secretariat of Minister for Energy, Water Resources, and Irrigation Kul Man Ghising said that the country has earned the amount by selling around 1000 megawatts (MW) of electricity — primarily to India and a smaller quantity to Bangladesh.
The statement was issued following Minister Ghising's visit to the Load Dispatch Centre of the Nepal Electricity Authority (NEA), the state-owned sole power utility, after several hydropower projects were damaged by recent floods and landslides.
Nepal has been selling its surplus electricity — after meeting domestic demand — to India mainly through the Indian Energy Exchange (IEX) in the Day-Ahead and Real-Time Markets at competitive rates, as well as under bilateral medium-term power sale agreements with the Indian states of Haryana and Bihar.
Additionally, the country has been exporting 40 megawatts of electricity daily to Bangladesh using India's transmission infrastructure.
Electricity trade with India is conducted in Indian rupees (INR), while exports to Bangladesh are traded in US dollars (USD) — resulting in earnings in both currencies. The Nepal Electricity Authority (NEA) has obtained approval to export a total of 1,165 MW of electricity to India and Bangladesh combined.
Although Nepal faced prolonged load-shedding during much of the 2010s, it began exporting electricity to India in November 2021, as the country started generating surplus energy during the rainy season. Typically, Nepal exports power from late May to mid-November, when production exceeds domestic demand. According to the NEA, Nepal's installed power generation capacity has now reached nearly 4000 MW.
"As there is still time left in the export season, Nepal is expected to earn more from power exports," Rajan Dhakal, spokesperson of the NEA, told IANS. "However, earnings from the Indian market will be affected because of the reduced price of electricity in India this year, though energy export in quantity will be higher."
In the last fiscal year 2024–25, Nepal earned NPR 17.5 billion from electricity exports, according to NEA data.
Despite several hydropower projects being damaged by recent floods and landslides, the supply of power to India and Bangladesh has not been affected, Dhakal added.
The Independent Power Producers’ Association, Nepal (IPPAN) — the representative body of private-sector power developers — said on Monday that 32 hydropower projects had been affected by the floods, including 17 operating projects with a combined capacity of 180 MW and 15 under-construction projects totaling 338 MW.
"The total capacity of the hydropower projects affected by the floods is not significant enough to impact Nepal’s ability to export electricity," said Dhakal. "Because of the festive season, domestic power demand has also declined."
Nepal aims to produce 28,500 MW of power by 2035 and export 15,000 MW, with 10,000 MW planned for export to the Indian market. In January 2024, Nepal and India signed a long-term power trade agreement, under which India committed to buying 10,000 MW of electricity from Nepal over the next 10 years.