Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal has received renewed approval to export 283 megawatts of electricity to India, enabling continued sales through the Indian Energy Exchange and bilateral agreements. The decision comes as Nepal’s power generation peaks during the post-monsoon period, creating surplus supply beyond domestic demand.
According to the Nepal Electricity Authority (NEA), India’s Central Electricity Authority (CEA) under the Ministry of Power has renewed the export permission granted to electricity generated from eight hydropower projects in Nepal. The approval allows NEA to continue exporting the surplus power to the Indian Energy Exchange (IEX) in the day-ahead and real-time markets at competitive prices.
Currently, Nepal has been selling additional electricity to Haryana and Bihar under medium-term bilateral power supply agreements. Using India’s transmission infrastructure, a portion of the power is also being supplied to Bangladesh, marking Nepal’s growing role in the regional electricity trade.
Of the total renewed approval, 103 MW was tied to four hydropower projects whose earlier permits for sale in the IEX market had expired on varied dates. NEA confirmed that the renewed authorization has been granted for about one year, effective from Tuesday.
Similarly, approximately 180 MW that had been supplied to Haryana under a seasonal bilateral agreement was set to expire on Thursday. Nepal typically supplies power to Haryana during the June to October period when domestic hydropower output is at its annual peak. NEA had also proposed allowing electricity from these projects to be traded on the IEX market once the seasonal contract ends. The CEA has now approved that proposal as well, enabling uninterrupted export of power to the Indian market starting Friday.
The development follows high-level diplomatic engagement in New Delhi. During his visit to attend the 8th Assembly of the International Solar Alliance, Minister for Energy, Water Resources and Irrigation, as well as Physical Infrastructure and Urban Development, Kul Man Ghising, raised the issue with India’s Power Minister Manohar Lal Khattar. Ghising urged that the export approval procedures be simplified and expedited, emphasizing that Nepal is currently in its peak generation period, requiring timely renewal to prevent electricity spill and revenue loss.
With the renewed clearance, Nepal aims to sustain electricity exports during high-output months while reinforcing its position as a regional clean energy supplier within South Asia.
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