Nepal Expands Hydropower Exports to India, Eyes Regional Leadership

Nepal will export an additional 251 MW of hydropower to India, bringing the total to 941 MW. This marks a significant milestone as Nepal also sets its sights on becoming South Asia’s leading hydropower exporter with a long-term goal of 10,000 MW in the next decade.

Nepal is poised to export an additional 251 MW of electricity to India, courtesy of 12 new hydropower projects, according to India’s cross-border trade authority. This new export will mark the first power sale to Bihar via a medium-term agreement, announced the Indian Embassy in Kathmandu.

The approval boosts Nepal’s total electricity export capacity to 941 MW from 28 projects, a significant increase from the previous 690 MW from 16 projects. Even before this new approval, Nepal emerged as a net electricity exporter, generating NPR 16.93 billion in electricity revenue last fiscal year. India first approved 39 MW of power exports from Nepal in October 2021, a figure that has since multiplied over 24 times.

Nepal initially started its power exports in the Day Ahead Market of the Indian Energy Exchange, now also accessing the Real Time Market. The Nepal Electricity Authority has finalized medium-term power sales agreements with discoms in Haryana and Bihar. Additionally, India has made provisions to count these imports as part of its Hydropower Purchase Obligation (HPO), incentivizing further purchases.

The long-term agreement between India and Nepal aims for up to 10,000 MW of electricity exports over the next decade. In the first year, exports have already reached around 1000 MW. These strategic moves highlight Nepal’s trajectory toward becoming South Asia’s leading hydropower exporter.

Moreover, Nepal has finalized a deal to sell 40 MW of power to Bangladesh, though signing was delayed due to political developments in Bangladesh. (ANI)