Nepal Electricity Authority Exports 1,000 MW of Electricity Daily with Impressive Income

7th October 2025, Kathmandu

The report confirming that Nepal is consistently exporting approximately 1,000 Megawatts (MW) of surplus electricity daily marks a significant milestone in the country’s energy sector and broader economic narrative.

NEA Electricity Exports

This achievement underscores Nepal’s rapid transformation from a nation plagued by chronic power cuts (load-shedding) just a decade ago to a reliable net exporter of clean, renewable energy. The stated earnings of approximately Rs. 15 billion (Nepali Rupees) since the beginning of the current fiscal year 2025/26 represent a crucial and much-needed injection of foreign revenue into the national economy.

Financial Significance: Rs. 15 Billion and the Foreign Exchange Boost

The figure of Rs. 15 billion in export revenue achieved in a little over two months (mid-July to early October 2025) is a remarkable performance, especially when viewed against previous annual figures. To grasp the scale of this earning in an international context, the approximate conversion of Rs. 15 billion (NPR) as of early October 2025 is around $106 million (USD). This early-year revenue is a powerful indicator that the Nepal Electricity Authority (NEA) is effectively leveraging the high-flow monsoon season to commercialize its hydropower potential.

Furthermore, the structure of the payment system is strategically beneficial to Nepal’s foreign exchange reserves. The bulk of the electricity is sold to India, with transactions settled in Indian Rupees (INR). Given the pegging of the Nepali Rupee to the Indian Rupee, the influx of INR directly helps maintain the stability of the national currency and facilitates trade with Nepal’s largest trading partner. Critically, the export of 40 MW to Bangladesh is settled in U.S. Dollars (USD), providing Nepal with convertible foreign currency, which is invaluable for financing international imports and easing pressure on the country’s overall foreign reserves. This diversified currency earning—in both a pegged and a convertible currency—is a major step toward economic stability and resilience.

Diversified Export Mechanisms and Regional Integration

Nepal’s success is not solely a function of increased generation capacity but also of its savvy navigation of the complex cross-border power trade mechanisms:

• Competitive Market (India): A significant portion of the surplus power is sold to India through the Indian Energy Exchange (IEX), utilizing both the Day-Ahead Market (DAM) and the Real-Time Market (RTM). The DAM involves transactions for delivery the following day, allowing the NEA to optimize sales by forecasting surplus, while the RTM allows for last-minute adjustments. This competitive, price-discovery model ensures Nepal earns the best possible market rate for its energy.
• Bilateral Agreements (India): The medium-term agreements with states like Haryana and Bihar provide a stable, guaranteed revenue stream for a fixed quantity of electricity at a pre-determined price, offering a hedge against the volatility of the IEX’s competitive markets. These agreements solidify long-term energy partnerships.
• Tripartite Agreement (Bangladesh): The export of 40 MW to Bangladesh, utilizing India’s transmission network, is a landmark achievement in energy diplomacy. This tripartite mechanism establishes Nepal as a key player in the nascent regional power grid, paving the way for future, larger exports to other South Asian countries.

Export Capacity and Future Outlook

The current export volume of 1,000 MW is nearly at the limit of the 1,165 MW approval granted by India and Bangladesh combined. This approved capacity is a dynamic figure that NEA continuously works to expand by seeking permission for power from more hydroelectric projects. Hitting this ceiling signals following things:

• Maximum Utilization: The NEA is maximizing the commercial use of all currently approved projects.
• Infrastructure Constraint: Further growth in exports now depends on two key factors:
• Securing approval for additional power from new or existing projects.
• Developing and upgrading cross-border transmission infrastructure (e.g., 400 kV lines) to accommodate the sale of the vast quantity of hydropower under construction.

Nepal’s rapid increase in installed generation capacity, largely driven by the wet-season output of run-of-the-river projects, has created a substantial and predictable energy surplus during the monsoon. The ability to commercialize this surplus effectively via diverse trade platforms like IEX and bilateral deals is a testament to the NEA’s operational efficiency and Nepal’s increasing regional energy diplomacy. The consistent daily export of 1,000 MW and the early-year revenue of Rs. 15 billion confirm that hydropower is rapidly becoming the cornerstone of Nepal’s export economy, capable of significantly reducing the country’s massive trade deficit and driving economic prosperity. This trajectory places Nepal on track to fulfil its long-held dream of leveraging its massive hydropower potential to achieve “hydro-dollar” status.

For More: NEA Electricity Exports