Over the past four fiscal years, Nepal has exported electricity worth Rs 48.84 billion, while importing power worth Rs 64.74 billion, according to the Nepal Electricity Authority (NEA).
Nepal began exporting electricity to India in November 2021 with 39 MW, and exports have since expanded. Currently, Nepal is authorized to export up to 1,090.9 MW to India. In addition, from October 15, 2024, Nepal started supplying 40 MW to Bangladesh via India’s transmission lines, raising the combined export capacity to 1,130.9 MW during the monsoon season.
In FY 2024/25 alone, electricity exports totaled Rs 17.45 billion—Rs 17.19 billion to India and Rs 266.7 million to Bangladesh. However, Nepal imported Rs 12.92 billion worth of power during the dry winter months, when production falls short of domestic demand.
NEA data shows steady progress. In FY 2023/24, Nepal imported 1.8335 billion units (Rs 16.81 billion) but exported 1.9426 billion units (Rs 16.93 billion), making Nepal a net exporter of electricity for the first time, according to then-Managing Director Kulman Ghising. In earlier years, imports exceeded exports—Rs 19.44 billion imports vs. Rs 10.45 billion exports in 2022/23, and Rs 15.46 billion imports vs. Rs 3.88 billion exports in 2021/22.
Nepal sells electricity to India through two mechanisms—day-ahead and real-time markets via the Indian Energy Exchange (IEX), and medium-term purchase agreements with companies such as NTPC Vidyut Vyapar Nigam (NVVN). The average price per exported unit stands at Rs 8.72.
Experts note that if Nepal could export electricity year-round at its current monsoon capacity of 1,130.9 MW, it would be able to sell 990.6 million units annually, generating over Rs 86.38 billion. At present, exports are seasonal, with Nepal needing winter imports to cover peak demand of 2,200–2,300 MW, against production of 3,000–3,100 MW out of a total installed capacity of 3,600 MW.
Looking ahead, Nepal and India have signed a 10-year agreement allowing Nepal to export 10,000 MW of power, first agreed during Prime Minister Pushpa Kamal Dahal’s visit to India and formalized in January 2024. The government has set a target of producing 28,000 MW by 2035 with an investment of Rs 4.6 trillion—allocating 13,000 MW for domestic use and 15,000 MW for exports.
