Nepal Emerges as Net Electricity Exporter in Historic Achievement

For the first time, Nepal has become a net electricity exporter in the 2023-24 fiscal year, thanks to its booming trade with India. The Nepal Electricity Authority (NEA) exported electricity worth Rs 16.93 billion to India, surpassing its import costs and making a net gain of Rs 120 million.

For the first time, Nepal has become a net electricity exporter with earnings from electricity exceeding what it spends on imports from India in the 2023-24 fiscal year, authorities announced Monday.

India permitted Nepal to sell electricity in its market in 2021. Currently, Nepal exports 690 MW of electricity to India during peak production seasons from June to November, while it imports power during the dry season.

The Nepal Electricity Authority (NEA) reported exporting electricity worth Rs 16.93 billion to India in the fiscal year 2023-24, against imports worth Rs 16.81 billion, resulting in a net gain of Rs 120 million, according to NEA spokesperson Chandan Ghosh.

Looking ahead, Nepal aims to boost its profits by exporting more electricity to India post fulfilling its domestic needs, Ghosh added. The private sector's contribution has significantly increased electricity exports, a stark contrast to the scenario 6-7 years ago, when Nepal was importing electricity to mitigate load-shedding hours.

Nepal once faced up to 16 hours of daily load shedding in the dry season but began exporting electricity to India three years ago. In January, Nepal signed an agreement with India to sell 10,000 MW of electricity over the next decade.