Nepal earns Rs 5.92 billion from electricity exports to India in September

Kathmandu, October 25

Nepal Electricity Authority (NEA) earned Rs 5.925 billion from electricity exports to India in September, the second month of the current fiscal year 2026/27, despite floods disrupting production at several hydropower projects.

The export revenue was higher than both the corresponding month last year and August this year. Meanwhile, Nepal has resumed exporting 40 megawatts of electricity to Bangladesh through India’s transmission network.

According to data from the NEA’s System Operation Department, Nepal exported 633.99 million units of electricity to India in September, generating Rs 5.925 billion in revenue.

Electricity was sold through two channels. Under bilateral power sales agreements, Nepal supplied electricity to India’s Haryana and Bihar states. The remaining surplus was sold at competitive rates through the Indian Energy Exchange (IEX), including its day-ahead and real-time markets.

The NEA exports surplus electricity generated during the monsoon season after meeting domestic demand. Under medium-term bilateral power sales agreements, electricity is supplied to Haryana and Bihar from June through October.

Nepal earned Rs 4.963 billion from electricity exports to India in September last year, while export revenue in August this year stood at Rs 5.0925 billion.

The latest figures represent an increase of Rs 962 million compared with September last year and Rs 832.5 million compared with August.

During the first three months of the current fiscal year — July, August and September — Nepal generated a total of Rs 16.1513 billion from electricity exports.

NEA Executive Director Dirghayu Kumar Shrestha said export revenue had increased in September despite production disruptions at some hydropower projects approved for electricity exports because of flood damage.

Around two-thirds of the electricity exported to India during the month was sold under bilateral agreements, with the remainder traded through the IEX, he said.

40MW electricity exports to Bangladesh resume

Nepal resumed exporting 40MW of electricity to Bangladesh on Friday evening, October 23, using India’s transmission infrastructure.

Exports had been suspended after flooding triggered by a glacial flood in the Bhote Koshi River in Rasuwa on August 26 damaged the Trishuli and Chilime hydropower plants, which had been approved to supply electricity to Bangladesh.

The damage also partially affected electricity exports to Haryana under bilateral agreements.

Shrestha said exports resumed after India’s Central Electricity Authority approved electricity generated by other hydropower plants for supply to Bangladesh.

Under the revised arrangement, electricity generated by the Solu, Kabeli-1 and Lower Modi hydropower projects has been approved for export to Bangladesh and Haryana, replacing the previously approved Trishuli, Devighat and Chilime plants.

Shrestha said maintaining exports through other projects despite flood damage to hydropower facilities and transmission infrastructure, along with the resumption of supplies to Bangladesh, was an important development for Nepal’s electricity trade.

The resumption is expected to help manage surplus electricity generated during the monsoon and expand regional power trade, he added.

The NEA and the Bangladesh Power Development Board signed a five-year agreement on October 3, 2024, for seasonal electricity exports. Under the agreement, Nepal supplies 40MW of electricity to Bangladesh daily from June 15 to November 15 each year.

Export capacity reaches nearly 1,179MW

Separately, Nepal has received approval from India’s Central Electricity Authority to export an additional 31MW of electricity.

With the latest approval, Nepal’s total authorised electricity export capacity to India has reached approximately 1,179MW.

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