Nepal’s Electricity Exports to India Hit Rs 4.19 Billion in Just One Month

Nepal exported electricity worth Rs 4.19 billion to India between mid-July and mid-August this year, according to the Nepal Electricity Authority (NEA). The daily revenue from these exports amounted to Rs 131.1 million, with the electricity being sold at Rs 8.51 per unit.

NEA Managing Director Kulman Ghising highlighted that the authority is currently capable of exporting over 700 MW of electricity daily, utilizing the surplus energy after meeting domestic demand. “We are exporting the excess electricity left over after daily consumption in the domestic market,” Ghising stated.

In the fiscal year 2023/24, Nepal emerged as a net exporter of electricity, generating Rs 120 million in net revenue from energy transactions with India. The country exported electricity worth Rs 16.93 billion to India while spending Rs 16.81 billion on imports from the southern neighbor.

Ghising noted that although Nepal still relies on imports from India during the winter months, the need for imports is gradually decreasing due to the country's expanding production capacity. He emphasized that the NEA is prioritizing the improvement of the domestic distribution system to increase local consumption.

Nepal's current electricity production capacity stands at 3,157 MW, a threefold increase over the past eight years. Meanwhile, the peak electricity demand in the country has reached 2,650 MW. With a surplus of electricity, Nepal is looking to expand its energy exports to neighboring countries, including India and Bangladesh. In January, Nepal signed an agreement with India to export 10,000 MW of electricity over the next decade.

This marks significant progress since October 2021, when India first approved the import of 39 MW of electricity from Nepal. In less than three years, this figure has grown more than 24-fold. Recently, India agreed to purchase an additional 251 MW of electricity from 12 hydropower projects in Nepal, bringing the total electricity exportable to India to 941 MW from 28 hydropower projects.

This continued export of domestically produced electricity, particularly during peak production periods, underscores Nepal's growing role as a significant energy exporter in the region. In 2023 alone, Nepal exported 1.7371 billion units of electricity to India from June 11 to December 6.