The Nepal Electricity Authority (NEA) spent Rs 67.68 billion to purchase electricity from private-sector power producers in FY 2025/26, accounting for nearly 58 percent of its total electricity procurement expenditure.
According to the NEA’s annual report, the authority spent a total of Rs 117.38 billion on electricity purchased from private producers, its subsidiary companies and India during the fiscal year. Of this, Rs 67.68 billion was paid to private power producers, Rs 17.86 billion to NEA subsidiary companies and Rs 10.56 billion for electricity imported from India.
The NEA purchased electricity from domestic hydropower projects to meet rising demand and exported surplus power to India during periods of excess generation. It also imported electricity from India when domestic production was insufficient.
During the review year, the NEA generated 2,803 GWh from its own power plants. It purchased 3,826 GWh from subsidiary companies and 10,825 GWh from private-sector producers, while 1,171 GWh was imported from India.
Private-sector producers therefore remained the largest source of electricity purchased by the NEA, reflecting the growing role of independent power producers in Nepal’s electricity system.
Meanwhile, the NEA generated Rs 148.62 billion in electricity sales revenue during FY 2025/26, a significant increase from the previous fiscal year. Domestic electricity sales generated Rs 119.31 billion, while electricity exports to India contributed Rs 29.31 billion.
The figures highlight the increasing importance of private hydropower producers in Nepal’s electricity supply, while also showing the growing financial significance of cross-border electricity trade with India.
