Nepal Power Export Surge: Electricity Revenues Reach NPR 6 Billion as Supply to Bangladesh Resumes

25th October 2026, Kathmandu

Nepal’s cross-border energy trade has achieved a major milestone. During the month of Ashoj (September–October) in the current fiscal year (FY 2083/84), the Nepal Electricity Authority (NEA) exported electricity valued at NPR 5.92 billion to India.

Despite severe monsoon floods damaging key hydropower facilities and temporarily halting production across multiple plants, total export revenues posted substantial growth compared to both the previous month (Bhadau) and the corresponding period last year.

Adding to this momentum, Nepal officially resumed exporting 40 MW of electricity to Bangladesh via India’s national grid, signaling a major boost for South Asian regional energy cooperation.

1. Breakdown of Nepal’s Electricity Export Revenues

According to official data released by the Power System Operation Department (Load Dispatch Center) of the NEA, Nepal exported a total of 633.98 million units (kWh) of electricity to India during Ashoj.

Monthly Export Comparison

Over the first quarter of the fiscal year (Shrawan, Bhadau, and Ashoj), Nepal’s cumulative power export revenue reached NPR 16.15 billion.

2. Power Trade Mechanisms: How Nepal Sells Power to India

The NEA utilizes two primary commercial channels to export surplus electricity to India:

Bilateral Agreements: Mid-term power sales agreements deliver electricity directly to the Indian states of Haryana and Bihar. These contracts run annually from June through October. Roughly two-thirds of total exports in Ashoj were routed through these bilateral deals.

Indian Energy Exchange (IEX): The remaining surplus power is traded competitively on the Day-Ahead Market (DAM) and Real-Time Market (RTM) of the IEX.

3. Resumption of Power Exports to Bangladesh (40 MW)

On Kartik 6 (late October), Nepal officially restarted exporting 40 MW of power to Bangladesh using Indian transmission infrastructure.

Exports had been disrupted since late August (Bhadau 10), when a glacial outburst flood in Rasuwa’s Bhote Koshi River triggered devastating flash floods downstream along the Trishuli River. The floodwaters damaged several export-approved facilities, including the Trishuli and Chilime Hydropower Plants.

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Diversion to Alternative Plants

To restore cross-border flows without delay, India’s Central Electricity Authority (CEA) granted clearance to substitute damaged plants with alternative hydropower facilities. Power exported to Bangladesh and Haryana is now sourced from:

• Solu Hydropower Project

• Kabeli-1 Hydropower Project

• Lower Modi Hydropower Project

Five-Year Power Agreement: Nepal and the Bangladesh Power Development Board (BPDB) signed a landmark five-year agreement on Ashoj 17, 2081 (October 2024). Under the deal, Nepal supplies 40 MW of daily power to Bangladesh for six months each year (June 15 to November 15).

4. Total Sanctioned Export Capacity Reaches ~1,179 MW

Nepal’s energy export ceiling continues to expand. The Indian Central Electricity Authority recently approved an additional 31 MW of export capacity.

With this approval, Nepal’s total sanctioned capacity for electricity exports to India and Bangladesh stands at approximately 1,179 MW.

Key Takeaways for Regional Energy Trade

According to NEA Executive Director Dirghayu Kumar Shrestha, maintaining strong export figures—and successfully rerouting power to Bangladesh despite natural disasters demonstrates the growing resilience and strategic importance of Nepal’s power sector.

Selling seasonal surplus hydro energy during the wet monsoon months allows Nepal to maximize domestic energy assets while helping fulfill the clean power demands of neighboring South Asian economies.

For more: Electricity Revenues Reach NPR 6 Billion