KATHMANDU, Aug 28: Over the past four Fiscal Years (FYs), Nepal has exported electricity worth approximately Rs 48.8 billion while importing around Rs 64.7 billion.
During this period, Nepal sold electricity to India and Bangladesh, with exports amounting to Rs 48.84 billion. Meanwhile, imports totaled Rs 64.74 billion. Nepal began exporting electricity to India in November 2021, starting with 39 MW, and exports have steadily increased since then. Currently, Nepal is authorized to export up to 1,090.9 MW to India.
Nepal also exports electricity to Bangladesh, which began on October 15, 2024. Using India’s transmission lines, 40 MW is currently exported to Bangladesh. During the monsoon season, the combined export capacity to India and Bangladesh reaches 1,130.9 MW.
In the last FY 2024/25, Nepal exported Rs 17.45 billion worth of electricity to both countries—Rs 17.19 billion to India and Rs 266.7 million to Bangladesh. During the dry winter months, Nepal imports electricity from India, with last year’s imports totaling Rs 12.92 billion.
According to the Nepal Electricity Authority (NEA), exports have increased compared to previous years. In FY 2023/24, imports were 1.8335 billion units (Rs 16.81 billion), while exports reached 1.9426 billion units (Rs 16.93 billion). NEA’s then-Managing Director Kulman Ghising noted that from that year onwards, Nepal became a net exporter of electricity, reversing earlier years of trade deficit.
In FY 2022/23, Nepal imported Rs 19.44 billion and exported Rs 10.45 billion; in FY 2021/22, imports were Rs 15.46 billion, and exports Rs 3.88 billion.
Nepal sells surplus electricity domestically via two mechanisms: through the Energy Exchange (IEX) in day-ahead and real-time markets at competitive rates, and via medium-term power purchase agreements to Indian companies such as NTPC Vidyut Vyapar Nigam (NVVN). The average price per unit of exported electricity is Rs 8.72.
If Nepal could export electricity year-round at the current monsoon capacity of 1,130.9 MW, it could sell 990.6 million units, earning over Rs 86.38 billion. Currently, exports are limited to the monsoon, while in winter, Nepal relies on imports to meet domestic demand.
Nepal’s total installed capacity exceeds 3,600 MW, the peak electricity demand is around 2,200–2,300 MW, while production ranges from 3,000–3,100 MW.
A long-term agreement between Nepal and India allows Nepal to export 10,000 MW over ten years, initially agreed upon during former Prime Minister Pushpa Kamal Dahal’s visit to India, and formalized on January 4, 2024. This agreement has encouraged private sector investment in hydropower.
Energy producers state they are capable of generating the 10,000 MW needed for exports to India. The government targets 28,000 MW generation by 2035, requiring an investment of Rs 4.6 trillion, of which 13,000 MW will meet domestic demand, and 15,000 MW will be exported.
Source: Republica