Nepal Begins Exporting Surplus Electricity to India


Nepal has begun exporting surplus electricity to India as the monsoon season brings increased water flow in rivers and streams, boosting hydropower generation.

“We are currently exporting around 400 megawatts (MW) of electricity daily,” said Kulman Ghising, Managing Director of the Nepal Electricity Authority (NEA).

Domestic Demand Met, Exports Begin

This export follows a significant rise in domestic electricity consumption, which now reaches 2,000 MW during peak periods. Just a few years ago, daily consumption was around 1.5 million units, compared to the current 10 million units.

“After meeting internal demand, we are exporting surplus electricity through the Indian Energy Exchange (IEX) market at competitive rates,” explained Ghising.

Export Target and Bilateral Agreements

The NEA aims to export between 1,000 and 1,200 MW of surplus electricity. Proposals for project approval have been submitted to India’s Central Electricity Authority.

“We have signed agreements to sell electricity to the Indian states of Bihar and Haryana,” said Ghising. “A proposal for approval is being sent for about 200 MW to Bihar and 400 MW to Haryana with NTPC Vidyut Vyar Nigam Ltd (NVVN).”

Current Challenges and Future Expansion

While exports are underway, some Birgunj area industries are experiencing temporary power supply issues due to transmission line upgrades. Upgrading the Piluwa-Parwanipur transmission line will eventually double its capacity and enable electricity exports from the Parwanipur substation.

Winter Imports and Net Export Position

To meet winter demand, Nepal imported electricity worth 15.21 billion rupees from India this year. However, exports are on the rise. From May last year to this year, Nepal has exported electricity worth 15.62 billion rupees to India. Despite exceeding winter imports by 1.74 billion rupees this fiscal year, Nepal remains a net importer overall. The average price per unit of exported electricity is slightly higher than the import price.

“We’ve transitioned from being solely reliant on electricity imports to a situation where exports are becoming increasingly significant,” concluded Ghising.