Nepal’s electricity exports to India decrease as hydropower shortages and infrastructure damage demand imports due to seasonal changes.

In the first five months of the current fiscal year, the Nepal Electricity Authority (NEA) distributed electricity valued at around INR 815 crore (13 billion Nepalese rupees). NEA specified that, from the middle of July to the middle of December of the current fiscal year, 2024 to 2025, around 1.76 billion units of electricity cost at Nepalese Rs 13.04 billion were exported to India.

According to NEA spokesperson Chandan Ghosh, Nepal has been exporting extra electricity to India during the rainy period for the past few decades. In contrast with the bilateral medium-term power sales agreement, the authority is offering the extra electricity to the states of Haryana and Bihar and additionally in the advance and current markets of the Indian Energy Exchange at affordable prices. Also, the trading was done in Indian currency. The authority gained Rs 815 crore from the sale of power during the review quarter.

According to Ghosh, however, Nepal has already stopped exporting and started importing electricity from India since the beginning of winter and the end of summer. However, Nepal currently imports 300 megawatts of electricity from India to meet its own energy needs. The majority of Nepal's power plants are river-based systems, which are subject to fluctuations in the seasons. As well, India has authorized the NEA to sell 941 MW of electricity produced by 28 projects in the Indian market through medium-term power sales agreements and competitive markets.

The damage resulting from landslides and floods in September to the 456 MW Upper Tamakoshi Hydropower Project prohibited Nepal from exporting extra electricity to India this year. Electricity exports will restart as the rivers' water flow continues to increase. Nepal started exporting 40 MW of electricity to Bangladesh this year through the Indian transmission line.