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India Approves Extended Power Exports to Nepal Amid Flood-Induced Shortage

CEO Tab by CEO Tab
September 15, 2026
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India Approves Extended Power Exports to Nepal Amid Flood-Induced Shortage
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India has approved the export of up to 654 megawatts of electricity to Nepal for 18 hours a day until December 31, according to media reports, as Nepal faces a potential power shortage following devastating floods that damaged major hydropower facilities.

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The floods, triggered by a glacier collapse, killed nearly 1,400 people in Nepal and Tibet and damaged more than a dozen hydropower projects. More than 5,300 people remain missing, including around 900 power-sector workers.

India’s Ministry of Power reportedly said the approval would help Nepal meet its electricity requirements during the difficult period while strengthening energy cooperation between the two countries. The power supply will be reviewed in December.

Hydropower accounts for almost all of Nepal’s electricity generation and has become an increasingly important source of export revenue. Before the disaster, Nepal was exporting more than 600 MW to India and around 40 MW to Bangladesh during the rainy season when domestic generation is at its peak.

However, the floods severely damaged hydropower projects and transmission infrastructure in Rasuwa and Nuwakot, forcing Nepal to halt electricity exports to both countries and potentially increasing its dependence on imports to meet domestic demand.

Nepali authorities are now expected to rely on electricity imports from India to manage shortages in the coming months, particularly as domestic hydropower production declines during the dry winter season.

The disaster has also intensified calls for international financial support. Nepal has estimated that around US$5 billion will be required for initial reconstruction, with officials highlighting the disproportionate impact of climate-related disasters on vulnerable developing countries.

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