Nepal sets new record in power trade, Earns Rs 29.32 billion from electricity exports to India and Bangladesh

KATHMANDU: Nepal has set a new record in electricity trade, earning Rs 29.32 billion from electricity exports to India and Bangladesh during the last fiscal year.

According to cross-border electricity import and export data from the Nepal Electricity Authority (NEA), Nepal earned a total of Rs 29.3247 billion from electricity exports to India and Bangladesh in fiscal year 2025/26, marking a 67.96 percent increase compared to the previous fiscal year.

The latest figures highlight a significant milestone for Nepal’s energy sector, as rising domestic hydropower generation, expanding cross-border transmission infrastructure and growing access to regional electricity markets have helped the country strengthen its position as a power exporter.

In fiscal year 2024/25, Nepal exported 2.3829 billion units of electricity and earned Rs 17.4587 billion in revenue. However, in fiscal year 2025/26, electricity exports surged 62.89 percent to 3.877492 billion units.

During the review year, Nepal sold electricity through the Indian open market as well as the trilateral power trade mechanism with Bangladesh at an average rate of Rs 7.56 per unit, generating the record export earnings.

Electricity Imports Decline

While electricity exports increased significantly, Nepal’s dependence on electricity imports also declined during the review year.

In fiscal year 2024/25, Nepal imported 1.6804 billion units of electricity, resulting in an outflow of Rs 12.923 billion. However, in fiscal year 2025/26, electricity imports fell 31.57 percent to 1.1498 billion units.

The decline in import volume also reduced the country’s total electricity import bill. Nepal spent Rs 10.5599 billion on electricity imports in fiscal year 2025/26, down 18.29 percent from the previous year.

The reduction in electricity imports indicates that increased domestic power generation has helped Nepal meet a larger share of its internal electricity demand while creating greater room for exports during periods of surplus generation.

Nepal Records Rs 18.76 Billion Net Power Trade Surplus

The sharp rise in exports combined with the decline in imports has significantly improved Nepal’s balance of electricity trade.

In fiscal year 2025/26, Nepal earned Rs 29.3247 billion from electricity exports and spent Rs 10.5599 billion on electricity imports. After deducting the import bill, Nepal recorded a net electricity trade surplus of Rs 18.7648 billion.

This represents a dramatic increase from the Rs 4.5357 billion net surplus recorded in fiscal year 2024/25. The net surplus increased by approximately 313 percent year-on-year, meaning Nepal’s net earnings from electricity trade have grown more than fourfold in just one year.

The figures demonstrate a major shift in Nepal’s electricity trade position—from a country heavily reliant on power imports during periods of domestic shortages to an emerging regional electricity exporter.

The expansion of hydropower generation, development of cross-border transmission infrastructure and improved energy management have played a key role in this transformation. Nepal’s growing access to the Indian electricity market and the expansion of trilateral power trade with Bangladesh have further opened new opportunities for the country’s energy sector.

With domestic hydropower capacity continuing to expand and regional electricity demand increasing, Nepal is increasingly positioning itself as a competitive and profitable clean-energy exporter in South Asia. The growing volume of electricity exports is also expected to strengthen the country’s foreign exchange earnings and contribute to reducing the overall trade deficit in the years ahead.