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The same authority that used to release load shedding routines eight years ago is now earning
Rs 4.19bn monthly through export of electricity. 

Nepal Electricity Authority (NEA) has around 3,300 MW of electricity in its system. From that, a total of 1,929 MW is being internally consumed. Similarly, the total demand of the country lies at 2,633 MW, according to the authority. However, such demand is only for a couple of hours, mostly during mornings and evenings. The authority has managed to earn the mentioned amount by exporting the excess electricity at night, informed Managing Director Kulman Ghising. 

The amount was raised in the first month of the current fiscal year, as announced by the authority. The authority has succeeded in earning income by exporting excess electricity after consumption in the country to India during the rainy season. According to daily records, electricity equal to Rs 131.1m has been exported to India between July 16 and Aug 16. Trade with India is done through the Indian currency. Therefore, around Indian Rs 2.62bn was earned through electricity export in
July 16-Aug 16. 

The average rate of electricity exported from July 16 to Aug 16 was Rs 8.52 per unit. While eight years ago, people had to face 8-9 hours of load shedding during rainy seasons and even up to 24 hours during dry seasons, today more than 700 MW is exported during monsoon, per Managing Director Ghising. 

He mentioned that although, due to natural and technical reasons, lights go off sometimes, today there is no load shedding because of the ability to supply the demanded amount of electricity.

Ghising claimed, “Our first priority is to increase the consumption of electricity in the country. To increase the consumption, the work of reforming and expanding the transmission and distribution system is being implemented as a campaign. The surplus electricity will be exported to neighboring countries India and Bangladesh.”

Ghising informed that the export of electricity to India during the rainy season and significant foreign exchange earnings are making a positive contribution to the country’s foreign exchange reserves and reducing Nepal’s trade deficit with India. “Even though we have to import electricity for a few more months during the winter, the amount of imports will gradually decrease. We have become a net exporter from net importer by selling the excess electricity consumed in the country from last year”, says Ghising. 

The authority is selling the surplus electricity to the Indian company NTPC Vidyut Vyapar Nigam Ltd (NVVN) at a competitive rate in the ‘day ahead’ and real-time market of the Indian Energy Exchange (IEX) and in accordance with the bilateral medium-term electricity sales agreement. NVVN is selling the electricity in the state of Haryana. 

The authority has so far received approval to sell 941 MW of electricity produced by 28 projects in the Indian market in accordance with the competitive market and the medium-term electricity sale agreement. A few days ago, in accordance with the bilateral agreement, an additional 251 MW of electricity was approved for the Indian states, Bihar and Haryana. Out of this, 125.89 MW of electricity from two additional hydroelectric projects will be sold to Haryana through NVVN while 109.61 MW from two projects is currently being sold to Haryana. A total of 125 MW generated from 10 hydropower projects will be exported to the state of Bihar as per the mid-term agreement. The first export of electricity to Bihar and additional to Haryana will start soon after completing the technical process. 

Currently, 580.89 MW of electricity generated by 14 projects are being sold at competitive rates. Since the export of electricity in the amount approved a few days ago has not yet started, currently 690.50 MW of electricity is being exported to IEX and Haryana on a daily basis.

An additional 10 percent of the sanctioned quantity of electricity can be exported. Therefore, currently more than 700 MW of electricity is not being exported on a daily basis. Last year, electricity worth
Rs 16.93bn was imported from India. In the same period, electricity worth Rs 17.06bn was exported.

In the last year, Nepal became a net exporter of electricity from being a net importer by exporting
Rs 130m more than imports. The authority started exporting electricity from 3 June 2022. In the first stage, 39 MW was exported to India from Trishuli and Devighat hydropower stations. 

A long-term electricity agreement has also been signed between the two countries to export 10,000 MW of electricity in 10 years. Due to the political changes in Bangladesh, although final preparations to export 40 MW have been made, the export remains postponed. 

Out of 753 local levels across Nepal, 539 have been fully electrified, while 196 are partially connected to the national grid. Eighteen local levels remain without access to the grid, but these areas are powered by micro-hydropower projects and solar plants.

According to the Nepal Electricity Authority’s (NEA) 2023/24 electrification data, 99 percent of the population now has access to electricity. This data, collected through a comprehensive study down to the ward level, shows that there are currently 5.9m electricity customers. Of those with electricity access, 97 percent receive power from the national grid, while the remaining three percent rely on alternative sources.

A total of 590 local levels have been electrified between 95 to 100 percent and 72 local levels have seen 75-95 percent electrification while it is 50-75 percent in 33 local levels, 26-50 percent in 26 local levels and up to 25 percent in 32 levels.  

NEA Managing Director Kulman Ghising emphasized the authority’s commitment to implementing the government’s goal of providing reliable and high-quality electricity to all citizens within the current fiscal year. He noted that in the fiscal year 2015/16, the electrification rate was just 58 percent, a figure that has now surged to 99 percent, marking significant progress. Ghising stated that NEA is working to identify and connect households in remote areas that still lack electricity. “We are prioritizing providing quality services to areas with existing electricity access and are dedicated to connecting those without NEA services.”

Efforts are also underway to bring electricity to homes in the geographically challenging mountainous and hilly districts of Karnali and Sudurpaschim provinces within a year. The NEA has already selected contractors and commenced electrification projects in the hilly regions of Lumbini, Karnali, and Sudurpaschim provinces, funded by a $220m soft loan from the Asian Infrastructure Investment Bank (AIIB) and the European Investment Bank (EIB).

Ghising also mentioned that the NEA is extending electricity access in other regions through government investments and allocating a portion of the authority’s earnings for this purpose.

Among the seven provinces, Madhes province has 100 percent electrification while Koshi has 99.3 percent, Bagmati 99.97 percent, Gandaki 99.4 percent and Lumbini 98.49 percent electrification. Karnali province has the least electrification at 74.38 percent. Sudurpaschim province has 86.58 percent electrification.

Out of 77 districts, Humla is the only district not connected to the national grid. The district relies on micro-hydropower and solar energy projects for electricity. 

Fifty-six out of the 77 districts have between 95 to 100 percent electrification while it is 75 to 95 percent in 10 districts, from 50 to 75 percent in five districts and between 25 to 50 percent in six districts. 

In Koshi Province, all 14 districts except Solukhumbu and Sankhuwasabha have over 95 percent electrification, with Solukhumbu at 89.04 percent and Sankhuwasabha at 93.99 percent. Jhapa, Morang, Sunsari, and Dhankuta districts are fully electrified.

In Madhes Province, all eight districts have been fully electrified. In Bagmati Province, 13 districts, including Kathmandu, Lalitpur, Bhaktapur, Ramechhap, Nuwakot, and Chitwan, have 100 percent electrification. The remaining districts have over 95 percent electrification.

In Gandaki Province, Tanahu, Syangja, Parbat, and Kaski districts are fully electrified, while Manang has 87.81 percent electrification, and the remaining districts exceed 95 percent.

In Lumbini Province, the lowest electrification rate is in Rukum East at 32.24 percent, and in Rolpa at 85 percent. Nawalparasi, Rupandehi, Kapilvastu, Arghakhanchi, Gulmi, and Bardiya are fully electrified, with other districts above 95 percent.

In Karnali Province, Rukum West has the highest electrification at 95.8 percent, while Mugu has the lowest at 31.8 percent. Other districts include Surkhet (86.48 percent), Dailekh (81.05 percent), Salyan (79.5 percent), Jajarkot (49.8 percent), Kalikot (70.96 percent), Jumla (62.47 percent), Dolpa (42.75 percent), and Humla (32.51 percent).

In Sudurpaschim Province, Kanchanpur and Kailali are fully electrified. However, Bajura has only 33.51 percent electrification, while Dadeldhura has 94.08 percent, Doti 88.04 percent, Achham 65.97 percent, Baitadi 61.73 percent, Bajhang 69.03 percent, and Darchula 84.01 percent.

Nepal is going to export an additional 251 megawatts of electricity to Bihar and Haryana states of India.

 The Central Electricity Authority (CEA) under the Ministry of Power of India has given approval to the Nepal Electricity Authority to export an additional 125.89 megawatts to the state of Haryana and 125 MW to Bihar.

The NEA is currently selling 190 megawatts of electricity to the state of Haryana.

The surplus electricity in Nepal is sold to Bihar and Haryana every year from June to October. Along with this, the amount of electricity to be sold to the state-level distribution companies of India has reached 360 megawatts.

Nepal exported electricity worth Rs 16.93 billion to India in the last fiscal year 2023/24.

The Nepal Electricity Authority (NEA) made an income of Rs 16.93 billion by exporting 1.94 billion units of electricity to India last fiscal year.

NEA has been selling the surplus power at Indian Energy Exchange’s Day ahead and real time market at competitive rate as well as to Indian company NTPC Vidyut Vypar Nigam Limited as per mid-term power agreement.

The NVVN has been selling the power to India's Haryana state. Average rate of exported power is Rs 8.72 per unit.

Power worth Rs 16.81 billion was imported to Nepal last fiscal year, according to NEA.  Around 183 billion units of electricity was imported from India to meet the high demand of electricity at home during winter season after power production decreases from hydropower projects in lack of water flow in rivers and rivulets across the country.

The average rate of power imported during the winter season is Rs 9.17 per unit. Power more than Rs 122.3 million was exported to India as compared to import last fiscal year.

Nepal had imported power worth Rs 19.44 billion in the fiscal year 2022/23 while electricity worth Rs 10.45 billion was exported.

Executive Director of NEA, Kulman Ghising said even though power should be imported to fulfill the domestic demands for a few months of winter season till next few years, the volume of export will also increase.

Cross-border electricity transmission lines with a combined capacity of 1,580 MW have been built and deployed for electricity trade between Nepal and India.

The voltage levels of these transmission lines range from 33 kV to 400 kV, with capacities from 45 MW to 800 MW. The 400 kV Dhalkebar-Muzaffarpur transmission line alone can transmit 800 MW of electricity, according to the Nepal Electricity Authority (NEA).

NEA officials state that Nepal can immediately export up to 1,500 MW if India grants approval. Currently, NEA has permission to export 690 MW of hydropower to India. India has allowed Nepal to export power generated by Chilime, Solu Khola, Kabeli B-1, Likhu-4, Lower Modi, Solu-Dudhkosi, Dordi Khola, Upper Kalanga Gad, Upper Chamelia, Solu Khola, Super Madi, Upper Balephi 'A' and Upper Chaku 'A', among other projects.

NEA has been selling energy in the day-ahead market of the Indian Electricity Exchange (IEX) and has signed a five-year agreement to sell 200 MW of hydropower to the Indian state-owned company NTPC Vidyut Vyapar Nigam Ltd.

The Dhalkebar-Muzaffarpur transmission line is the only high-capacity cross-border line operational at present, with a maximum capacity of 2,000 MW. However, the two countries have agreed to transmit only up to 800 MW from this line.

Several other cross-border lines, including two 132 kV Kataiya-Kusbaha and Kataiya-Kusbaha II with capacity of 120 MW and 160 MW, respectively, the 132 kV Raxaul-Parwanipur (160 MW), Ramnagar-Gandak (65 MW), Mainiya-Sampatiya (160 MW), and Tanakpur-Mahendranagar (70 MW), are also in operation.

According to NEA officials, Nepal and India will have infrastructure to support transmission of 12,700 MW by 20230. Many transmission line projects are under different stages of construction. The 400 kV Dhalkebar-Sitamarhi transmission line with a capacity of 2,500 MW is one such project. The transmission line, which is dedicated to export power generated by the Arun III hydropower project, is expected to come into operation by 2025/26. The 132 kV Nepalgunj-Nanpara with a capacity of 200 MW is expected to be operational by 2025/26. 

Other notable 400 kV cross-border transmission line projects include New Butwal-Gorakhpur, Inaruwa-Purnea and Kohalpur-Lucknow. All these lines can transmit up to 2,500 MW.

NEA officials say Nepal has requested permission to export 1,200 MW this year. 

Nepal is in an energy surplus situation during wet months. The country, however, faces a shortfall of energy during the dry season when power generation by its run-of-river (RoR) projects shrink to nearly a third of installed capacity. This necessitates import from India during the dry months even though energy goes to waste during the wet months.

Talks are underway to export 40 MW of electricity from Nepal to Bangladesh using Indian energy infrastructure. Officials from Nepal and Bangladesh believe that the success of this power agreement could open doors for more energy cooperation between the two countries in the future.

The Bangladesh Power Development Board (BPDB) has sent a letter to the Nepal Electricity Authority (NEA) to sign an agreement for the sale and purchase of 40 MW electricity produced in Nepal.

The BPDP sent the letter for the agreement, sharing that the tender submitted by the NEA for the sale of 40 MW power for six months during the rainy season was approved by the concerned body, according to the NEA.

In accordance with the provision in the law, a trilateral agreement was signed between Bangladesh, India and Nepal on January 1, 2024 for the sale of 40 MW electricity produced in Nepal. 

The NEA had called for tender for the purchase of power for five years as per this.  Sharing that the tender was approved by the concerned body by evaluating the documents related to tender, the BPDP informed the NEA about the approval of the tender. 

The NEA has to send written notice about the approval of the tender within seven working days after that the BPDP would provide a draft of the agreement regarding sale of the power to the NEA. 

An agreement should be signed within 28 days after receiving the draft. An agreement would be signed between NEA, NTPC Vidyut Vyapar Nigam (VVN), India and BPDP.

NEA Executive Director Kulman Ghising said works have been started to export power to Bangladesh from this monsoon season by completing all the remaining processes.

"Since all the three agencies agreed on the draft of the trilateral power trading agreement, the pact would be signed soon. After this, we will send a list of the projects to the Central Power Authority of India for its approval for exporting power to Bangladesh," NEA Executive Director Ghising said.

According to Ghising, they are sending to the concerned authorities of India proposals for exporting electricity to Bangladesh for which approval has already been taken, as it would take time to get approval when proposals for power export from new projects are sent.

Minister for Energy, Water Resources and Irrigation Shakti Bahadur Basnet has directed the NEA leadership before this to finalize the process required for selling power to Bangladesh. Minister Basnet is also the Chairman of the NEA Board of Directors.

NEA has made preparations for exporting to Bangladesh the power produced from the projects constructed with Indian grant, and the electricity generated from the 25-Megawatt Trishuli and the 22-Megawatts Chilime hydropower project constructed by its subsidiary company.

NEA will sell 40 megawatts of power to Bangladesh in the six months (June 15 to November 15) every year at the rate of 6.40 US dollars per unit.

The NEA will receive the price of the electricity to be exported to Bangladesh via the inter-country Dhalkebar-Muzafarpur 400 kV transmission line at the Muzaffarpur point, India. This transmission line is the first inter-country transmission line between Nepal and India. This means, the electricity meter of the power exported to Bangladesh would be installed at Muzaffarpur. It is stated that NEA will itself bear the cost of the technical leakage occurring on the transmission line from Dhalkebar to Muzaffarpur.

The electricity exported from Nepal will reach Bangladesh from Muzaffarpur via the Baharampur (India)-Bhermara (Bangladesh) 400 kV transmission line of India.

Indian Prime Minister Narendra Modi has hailed the export of electricity from Nepal to Bangladesh via the Indian grid as a landmark in sub-regional energy cooperation. 

Speaking at a joint press conference with Bangladesh Prime Minister Sheikh Hasina in New Delhi on Saturday, Modi emphasized that the swift implementation of such large-scale initiatives in multiple areas within just one year reflects the dynamic pace and scope of bilateral relations.

Last year, Nepal and India signed a long-term power trade agreement, which included India's consent to facilitate the sale of Nepali electricity to Bangladesh. Officials from Nepal and Bangladesh are currently finalizing the modalities of this agreement.

The joint statement underscored the commitment to expanding power and energy collaboration and developing intra-regional electricity trade. This includes competitively-priced power generated from clean energy projects in India, Nepal, and Bhutan, transmitted through the Indian electricity grid. To support this initiative, India will expedite the construction of a 765 kV high-capacity Katihar-Parbatipur-Bornagar interconnection, with suitable Indian financial assistance, to serve as a key anchor for grid connectivity.

Modi and Hasina also discussed regional issues, highlighting the potential of the India-Bangladesh relationship as a major anchor for regional and sub-regional integration under the BIMSTEC, SAARC, and IORA frameworks. They committed to working together on global platforms to advance their common interests, particularly those of the Global South.

As part of sub-regional connectivity initiatives, India will provide transit facilities for the movement of Bangladeshi goods to Nepal and Bhutan via the railway network. The two leaders also reiterated their commitment to the early operationalization of the BBIN Motor Vehicle Agreement to enhance sub-regional connectivity.

Recognizing the significant contribution of their partnership to regional peace, security, and stability, India and Bangladesh reaffirmed their commitment to a free, open, inclusive, secure, and rules-based Indo-Pacific region. With converging visions for the Indo-Pacific and awareness of the region's vulnerability to climate change, India and Bangladesh will co-lead the ‘Disaster Risk Reduction and Management’ pillar of the Indo-Pacific Oceans Initiative (IPOI). They will cooperate to mitigate disaster risks, build disaster-resilient infrastructure, and contribute to the sustainability of their shared maritime region.

The Cabinet Committee on Government Purchase of Bangladesh has approved a proposal to import 40 MW of hydropower from Nepal.  Bangladeshi officials say the two countries are likely to sign the final agreement on energy trade during their Prime Minister Sheikh Hasina’s visit to Nepal. This marks a stepping stone toward unlocking the vast potential for energy cooperation between the two South Asian nations.

While Nepal, as per a study conducted decades ago, has hydropower potential of over 80,000 MW, generation of about 42,000 MW is considered economically viable. However, only a fraction of this potential has been harnessed so far. By tapping into this renewable energy source, Nepal can not only meet its domestic energy demands but also become the largest exporters of clean energy in the region. Bangladesh is grappling with a growing energy demand, thanks to its burgeoning economy and rapid urbanization. Import of hydropower from Nepal presents a win-win solution for both countries. While it opens up new avenues for revenue generation for Nepal, contributing to economic growth and narrowing down its trade, Bangladesh can diversify its energy mix, reduce its reliance on fossil fuels and mitigate the environmental impact of its energy consumption. Bangladesh currently imports 2,600 MW from India, including 1,500 MW from Adani Group’s coal-fired plant in Jharkhand.

While the quantum of import is small, it paves the way for larger and more ambitious energy trade agreements between the two South Asian neighbors. Bangladesh has shown interest to develop a hydropower project of around 500 MW in Nepal. Talks are underway to jointly develop the Sunkoshi-3 hydropower project (683 MW) in Kavre by also involving India. The fifth meeting of the secretary-level Joint Steering Committee on energy cooperation between Nepal and Bangladesh held last year decided that the NEA and Bangladesh Power Development Board (BPDB) would sign a joint venture agreement within the next six months to develop the project. There, however, has been no further development in this direction.

To fully capitalize on this opportunity, Nepal must address the infrastructural and regulatory challenges that have hindered the development of the hydropower sector. India's support is crucial in facilitating electricity transmission as Nepal and Bangladesh are not connected by land. Collaboration among these three nations could unlock the true potential of cross-border energy trade, thereby fostering economic growth and regional integration.

Nearly 800 households in the district have been forced to live in darkness owing to electricity disruption for two days.

The Dillichaur Hydropower Project failed to generate power owing to the cut off in water supply. The canal supplying water to the hydropower was damaged by a landslide.

The canal collapsed, disrupting water supply. It was damaged in a 25-meter stretch. "Although locals had noticed cracks on the canal wall, it lacked timely repair, resulting in power disruption since Sunday," said Chairman of Vidyut Cooperatives, Krishna Bahadur Budha, expressing regret.

Budha informed that it costs Rs 600, 000 as per technicians to reconstruct the channel.

Nearly 800 households from ward 4, 5 and 6 of Patarasi Rural Municipality have been deprived of electricity after the damage in water supply. It also caused difficulty in the daily works of government offices, banks and financial institutions.

Meanwhile, Rs 300, 000 has been allocated from the rural municipality for the reconstruction of the hydropower canal.

Rural municipality Chair Purna Singh Bohara informed that they were at work to resume power supply at the earliest.

Nearly 5,000 households in Mugu district are living without electricity and still rely on solar or traditional lamps. 

The lack of electricity access has greatly affected the livelihood of the people, from cooking to charging electronic devices. 

In Chhayanath Rara Municipality alone a total of 2,546 households are living in the dark. It’s the same for the residents of Khatyad Rural Municipality. 

Local people say very few families have installed solar panels to power their homes, but they are not reliable. 

The people of Khatyad Rural Municipality have long been waiting for the completion of a hydropower project which has been in limbo for the last five years. 

The national transmission line has been extended only till Gamgadhi, the district headquarters, and places outside have no electricity. 

Prime Minister Pushpa Kamal Dahal informed the Law, Justice and Human Rights Committee of the House of Representatives that India has signed an agreement to purchase 10, 000 megawatt of electricity from Nepal in 10 years.

Though India has agreed to procure electricity from Nepal, it has reservations pertaining to the purchase of power produced by the Chinese companies.

During the meeting of the parliamentary committee on Wednesday, Prime Minister Dahal said that attempts are being made to cajole India to buy electricity produced by the Chinese companies in Nepal.

The Prime Minister said that India’s External Affairs Minister S Jaishankar during his visit to Nepal a few days ago had signed a long-term power agreement.

“No agreement has been made to take the investment of India only. There is a provision that any country can produce electricity in Nepal. India has signed an agreement to purchase 10, 000 megawatt of electricity from Nepal in 10 years,” PM Dahal said, adding, “The Indian government, however, is reluctant to purchase electricity produced by Chinese companies in Nepal.”

Prime Minister Dahal said that attempts are being made to persuade India to buy the electricity from the hydropower projects invested by the Chinese company.

Prime Minister Dahal claimed that Nepal has exported electricity worth over Rs 15 billion in one year.

Addressing the nation on the occasion of the completion of one year in office, Prime Minister Dahal said that Nepal earned Rs 15. 27 billion by exporting 700 megawatt of electricity in one year, which is 31.28 percent more than the same period of the previous year.

Saying that Nepal was bearing the brunt of 18 hours of load shedding until he was appointed as the prime minister for the second time, he made it clear that Nepal has now become able to export the power.

“Nepal, which had to import the electricity during the monsoon season also, has reached the position to export the electricity,” he said.

Nepal’s power generation capacity has increased to 2892 megawatt in the seven years. Among which, around 541 megawatt was added in this year only, the prime minister stated.

During his visit to India this year, a long-term power trade agreement was signed with an objective to export 10, 000 megawatt of electricity in 10 years.

India has endorsed a memorandum of understanding (MoU) to purchase electricity from Nepal.

Under this agreement, India has agreed to import 10,000 megawatts (MW) of electricity from Nepal in the next ten years.

According to Nepal's ambassador to India, Dr Shankar Prasad Sharma, the federal Council of Ministers of India formally endorsed the agreement on the power trade with Nepal and India shared information about this through social media X (twitter).

He said the decision would contribute to accelerating Nepal's economic development and restructuring efforts.

The MoU was initially signed between the two countries during Prime Minister Pushpa Kamal Dahal's latest visit to India (May 31-June 3, 2023) and at the time the Prime Minister termed the moment historic. Energy secretaries from both countries signed and exchanged the document.

Following India's latest decision to endorse the agreement, the energy secretaries from both neighboring countries will participate in a special ceremony to formally resign it.

Joint Secretary at the Ministry of Energy, Hydro Resources and Irrigation and Spokesperson for the Ministry, Madhu Prasad Bhetuwal said they were unofficially informed about the official decision of the Indian government to endorse the agreement and expect to receive an official confirmation regarding the decision.

With the decision, the door to export the electricity produced in the Indian market in an easy and smooth manner has been opened.

Nepal had been urging for power export in the Indian market in short-term, mid-term and long-term. 

The Nepal Electricity Authority (NEA) has been exporting 452 megawatt electricity in the Indian Energy market on a daily basis. 

Nepal and India had signed a power trade agreement in 2014. The Indian Company, Satluj Jal Vidyut Nigam, is constructing a 900-megawatt Arun III hydropower project. Although the Indian company, GandhI Mallikarjun Rao, has been said to construct a 900-megawatt Upper Karnali hydropower project, it has not been started yet.

Similarly, Indian companies have forwarded necessary processes for the construction of different projects including Lower Arun, West Seti and SR-6.

An agreement has been reached between Nepal and India to construct some projects after preparing joint investment.

Nepal has been making preparations to export 40-megawatt electricity in Bangladesh soon.

The private sector has been demanding the government to grant permission for power trade. The proposed new electricity bill has made this arrangement.

The Cabinet meeting held on August 29 had given permission to the Energy Ministry to table the electricity bill in the Federal Parliament.