Kathmandu: Nepal and India have agreed to significantly expand cross-border electricity trade, with Nepal’s power exports to India set to increase to 1,650 megawatts (MW) under a new bilateral understanding reached during high-level energy talks in Pokhara.
The agreement was reached at the conclusion of the 13th meeting of the Nepal-India Joint Steering Committee (JSC) on Power Sector Cooperation and the accompanying Joint Working Group (JWG) meeting held on Wednesday.
The Joint Steering Committee meeting was co-chaired by Sarita Dawadi, Secretary at Nepal’s Ministry of Energy, Water Resources and Irrigation, and Pankaj Agarwal, Secretary of India’s Ministry of Power.
Power Trade Capacity Expanded
According to Nepal’s Ministry of Energy, Water Resources and Irrigation, both sides agreed under the Combined Power Transfer arrangement to raise Nepal’s electricity export capacity to India from the existing 1,100 MW to 1,650 MW.
The two countries also agreed to increase electricity imports from India to Nepal from 1,000 MW to 1,400 MW, utilizing the Dhalkebar–Muzaffarpur and Dhalkebar–Sitamarhi cross-border transmission corridors.
The enhanced transmission capacity is expected to strengthen energy security in both countries while enabling Nepal to export more surplus hydropower, particularly during the monsoon season when domestic generation peaks.
Focus on Hydropower and Transmission Infrastructure
During the meetings, officials reviewed the progress of bilateral cooperation in the power sector, including the development of hydropower projects, expansion of cross-border transmission infrastructure, and electricity trading arrangements.
The two sides also discussed measures to accelerate the implementation of ongoing and planned power generation and transmission projects aimed at further integrating the electricity markets of Nepal and India.
Boost for Nepal’s Energy Exports
The agreement marks another step in Nepal’s efforts to establish itself as a regional exporter of clean hydropower. Increased export capacity is expected to help utilize surplus electricity generated by the country’s rapidly expanding hydropower sector while generating foreign exchange earnings and supporting long-term energy cooperation with neighboring countries.
The latest understanding builds on the growing energy partnership between Nepal and India, which has expanded significantly in recent years through cross-border transmission projects and long-term electricity trade agreements.
