With rising water levels in major rivers and accelerated snowmelt following the onset of the monsoon, power generation by hydropower projects in the country is gradually increasing, enabling the country to resume power exports to India and Bangladesh.
According to Nepal Electricity Authority (NEA), daily exports have now reached 350 MW. Of this, 40 MW is being sent to Bangladesh via India, and the remaining is being exported to various Indian states including Haryana and Bihar. Since Sunday, NEA has been exporting 200 MW and 80 MW, respectively, to the Indian states of Haryana and Bihar. Additionally, it has been supplying up to 30 MW daily to the Indian power exchange market.
Nepal has received permission to export up to 940 MW in total—400 MW under a medium-term bilateral agreement and 540 MW through the Indian Energy Exchange (IEX). Although 125 MW is approved for export to Bihar, only 80 MW is currently being utilized. Similarly, exports to Haryana are expected to increase to the full 235 MW approval in the coming weeks.
NEA plans to resume export of the full 940 MW by the first week of July.
Electricity exports to Bangladesh resumed on Saturday night under a trilateral agreement between Nepal, India and Bangladesh. Nepal is now exporting 40 MW to Bangladesh via the Dhalkebar-Muzaffarpur 400 kV transmission line. The electricity is sourced from Trishuli and Chilime hydropower projects. NEA estimates this export will generate monthly revenue of Rs 250m for Nepal, or Rs 1.25bn over five months.
Nepal, India and Bangladesh signed a tripartite agreement for power exports to Bangladesh in October last year. To begin with, Nepal is exporting 40 MW. Bangladesh has expressed interest to develop a reservoir-type power plant in Nepal in partnership with Nepal for a long-term energy partnership.
Unlike Nepal-India energy trade, which is settled in Indian currency, Bangladesh is paying Nepal in US dollars. The cost per unit is 6.4 cents. Bangladesh also bears the transmission loss and costs incurred within India, while NEA covers the losses within Nepal.
In the first five months of 2024-25, Nepal exported electricity worth Rs 13.4bn to India.
Although Nepal has a total installed capacity of 3,602 MW, actual generation stands at around 2,300 MW right now. Domestic demand hovers around 1,900 MW.
