Kathmandu, July 24: Nepal earned a record Rs 29.32 billion from electricity exports to India and Bangladesh in fiscal year 2025/26, marking a major leap in the country’s cross-border power trade.
Data released by the Nepal Electricity Authority (NEA) show export earnings jumped 67.96 per cent from Rs 17.45 billion a year earlier. The increase came as new hydropower projects boosted electricity generation, allowing Nepal to export larger volumes while expanding access to regional power markets.
During the fiscal year, Nepal exported 3.877 billion units of electricity, up 62.89 per cent from 2.383 billion units in FY 2024/25. Power was sold through the Indian Energy Exchange, NTPC Bidyut Byapar Nigam, and under the trilateral electricity trade arrangement with Bangladesh. The average export price stood at Rs 7.56 per unit.
Meanwhile, electricity imports from India continued to decline. Nepal imported 1.15 billion units, down 31.57 per cent from the previous year, while import spending dropped 18.29 percent to Rs 10.55 billion. Higher domestic hydropower generation, especially during the monsoon, enabled the country to meet more of its own electricity demand.
As a result, Nepal posted a net gain of Rs 18.76 billion from cross-border electricity trade, more than four times the Rs 4.53 billion recorded in the previous fiscal year.
India first allowed Nepal to export 39 MW of electricity in October 2021. Within four years, Nepal’s export capacity has crossed 1,000 MW during surplus periods. Nepal also became a net electricity exporter for the first time in FY 2023/24.
Officials and energy experts credit the growth to rising hydropower production, stronger cross-border transmission links, efficient power management by the NEA, and wider regional electricity cooperation. They say growing exports will strengthen foreign exchange earnings, improve the NEA’s finances, and support further investment in hydropower and transmission networks.
People’s News Monitoring Service
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