Nepal Earns Rs. 12.72 Billion from Electricity Exports to India in Four Months

Nepal earned Rs. 12.72 billion from electricity exports to India during the first four months of the fiscal year 2024/25. The Nepal Electricity Authority (NEA) sold 1.68 billion units of surplus electricity between Shrawan and Kartik at an average rate of Rs. 7.63 per unit. These exports were conducted through India's Day-Ahead and Real-Time Markets on the Indian Energy Exchange (IEX) and bilateral agreements with Haryana and Bihar. Additionally, Nepal began exporting electricity to Bangladesh using India’s transmission infrastructure, with all transactions made in Indian Rupees.

According to Kulman Ghising, Managing Director of the NEA, floods and landslides during Ashoj significantly impacted the electricity export process. Hydropower projects and transmission lines suffered considerable damage, with the largest project, the 456 MW Upper Tamakoshi, rendered non-operational due to landslide-induced structural damage. The Kabeli Corridor transmission line, essential for exporting 200 MW of electricity, was also damaged but has since been restored. Despite ongoing repair efforts, these disruptions are likely to prevent the NEA from achieving its annual export target of Rs. 30 billion.

Electricity exports varied each month during the four-month period. In Shrawan, the NEA exported 495.7 million units, earning Rs. 4.15 billion at an average rate of Rs. 8.36 per unit. Bhadra saw exports of 559.4 million units, generating Rs. 3.68 billion at an average rate of Rs. 6.58 per unit. In Ashoj, 379.3 million units were exported, earning Rs. 3.65 billion at an average rate of Rs. 8 per unit. By Kartik, exports declined to 233.6 million units, generating Rs. 1.84 billion with an average rate of Rs. 7.84 per unit.

As winter approaches, the NEA anticipates a decrease in hydropower production due to reduced water flow in rivers. This seasonal decline is expected to limit exports, and Nepal may even need to import electricity during some months to meet domestic demand.

In the previous fiscal year, Nepal exported electricity worth Rs. 17.06 billion while importing Rs. 16.93 billion, marking a shift from being a net importer to a net exporter of electricity. Currently, the NEA has approval to sell 941 MW of electricity from 28 projects in the Indian market. Despite seasonal and natural challenges, the NEA is focused on restoring infrastructure like the Upper Tamakoshi project to enhance its export capacity.