India Grants Nepal Approval for Additional 200 MW Electricity Exports

Kathmandu - Nepal has obtained formal approval from the Government of India to sell an extra 200 megawatts (MW) of electricity, further strengthening its role as a regional power supplier. The clearance, announced by the Nepal Electricity Authority (NEA), allows the export of electricity generated by five hydropower projects—Likhu-2, Likhu Khola A, Lower Solu, Thulo Khola, and Super Kabeli Khola A.

With this new consent, Nepal’s total approved export capacity to India now stands at 1,010.9 MW. This figure combines the newly sanctioned 200 MW with the 810.9 MW already authorized in earlier agreements. Adding the 40 MW previously approved for Bangladesh, Nepal’s total regional electricity export clearance has reached 1,050.9 MW.

The NEA began its commercial power supply to Bangladesh on June 15 this year, delivering 40 MW via India’s transmission system. This follows the first-ever sale of Nepali electricity to Bangladesh on November 15, 2024, which was conducted for 12 hours as a trial. The latest Indian approval is valid from August 11 to October 31, 2025, during which the designated hydropower plants will channel their production to the Indian market.

According to NEA officials, export volumes are expected to rise sharply in the coming months as additional permissions from India are anticipated. This seasonal boost will be particularly significant during the rainy months when Nepal’s hydropower production surpasses domestic consumption.

In the last fiscal year, Nepal exported 2.35 billion units of electricity, generating revenue of approximately Rs. 17.46 billion. This represents a 3.31% rise in earnings and a 21% increase in export volume compared to the previous year. Of the total revenue, Rs. 17.19 billion came from India, while Bangladesh accounted for Rs. 266.7 million.

The NEA also reported that Nepal imported electricity worth around Rs. 12.92 billion from India last fiscal year. Notably, the value of exported electricity exceeded the cost of imported electricity by Rs. 4.5 billion, reflecting a positive trade balance in the power sector. The volume of imports has been gradually declining as domestic hydropower capacity expands.

By leveraging seasonal surpluses, Nepal has been strategically positioning itself as an energy hub in South Asia, supplying renewable electricity to both India and Bangladesh. The latest export approvals are expected to further solidify this role while contributing to the country’s foreign exchange earnings and regional energy cooperation.