KATHMANDU, Jan 7: Nepal earned Rs 18.26 billion by selling electricity to India and Bangladesh in the peak production season during five months of the current fiscal year (FY) 2025/26.
In the review period, Nepal exported 2.714 billion units of electricity to two of its neighboring countries. According to the Nepal Electricity Authority (NEA), the earnings from cross-border electricity sales during mid-July and mid-December 2025 was 38 percent more compared to the amount that the country secured under the same heading in the corresponding period of last fiscal year, when the country exported around 1.76 billion units of electricity worth Rs 13.2 billion.
The revenue that the Himalayan nation generated from power trade in the five months of FY 2025/26 was Rs 800 million more than earnings of the entire period of FY 2024/25. In the last fiscal year, the total income from electricity exports stood at Rs 17.46 billion.
According to the NEA, it generated the highest monthly electricity export revenue of Rs 5.03 billion in one month during September 17 and October 17. Similarly, the lowest earning amount of Rs 1.10 billion was recorded between November 17 and December 15.
The NEA has been selling surplus electricity at competitive rates in the day-ahead and real-time markets of the Indian Energy Exchange (IEX) and to the states of Haryana and Bihar as per the bilateral medium-term power sales agreement. The average rate of electricity exported to India during the five-month period stood at Rs 7.11 per unit.
In the peak production time, Nepal exported 1,200 MW of electricity to India and 40 MW of electricity to Bangladesh. Nepal earned US $9.436 million by exporting 147.43 GWh of electricity to Bangladesh from mid-June to mid-November 2025. The rate of electricity exported as per the agreement is 6.40 US cents per unit.
On November 27, 2025, Nepal reached an agreement to export an additional 20 megawatts of electricity to Bangladesh but is subject to India’s approval. If approved, Nepal will export a total of 60 megawatts of electricity to Bangladesh from the next peak power generation season.
Despite the notable earnings registered in the peak production season, Nepal’s export has declined with the onset of the winter season. The NEA’s record shows that the country has total peak demand for 2,280 MW of electricity while the total electricity generation is around 2,000 MW at present.
With a decline in electricity production, the country has been exporting electricity partially, during night when the domestic demand is low. On the other hand, Nepal has started importing electricity during the day time from India, according to NEA’s Managing Director Hitendra Dev Shakya.
As per the NEA record, the current export of electricity stands at 3,305 MWh while import is 669 MWh.
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