Rainfall turns windfall for NEA as power export earnings cross Rs 20 billion

KATHMANDU: Unseasonal and continuous rainfall during Nepal’s dry season has emerged as a major financial boost for the Nepal Electricity Authority (NEA), significantly increasing electricity exports to India and pushing export earnings beyond Rs 20 billion in the first nine months of the current fiscal year.

The state-owned power utility reported that between mid-July and mid-April of fiscal year 2082/83 (FY 2025/26), Nepal exported 2.95 billion units of electricity to India, generating revenue of Rs 20.41 billion.

The figure marks a sharp increase from the same period last fiscal year, when Nepal exported 1.77 billion units of electricity and earned Rs 13.15 billion. The increase represents an additional Rs 7.26 billion in export income year-on-year, highlighting how favorable weather conditions have transformed Nepal’s hydropower performance during the traditionally low-generation winter season.

Winter Rainfall Boosts Hydropower Generation

The NEA attributed the surge in electricity exports to persistent rainfall during winter, which helped maintain river flows and prevented a sharp decline in hydropower generation.

In Nepal, most hydropower plants are run-of-river projects, meaning electricity production typically falls sharply during the dry winter months due to lower water levels. Historically, Nepal has relied heavily on electricity imports from India to manage demand during the dry season.

However, this year’s unusual weather pattern changed the equation.

According to Chandan Kumar Ghosh, chief of the NEA’s Load Dispatch Centre, electricity generation remained comparatively strong during the winter months, enabling Nepal not only to meet domestic demand more comfortably but also to substantially increase exports.

“Winter is generally the season when electricity generation drops significantly, forcing us to import more power from India to meet demand. But this year, continuous rainfall helped sustain generation levels. Energy output from our powerhouses has remained strong,” Ghosh said.

He added that electricity production during Chaitra and Baisakh reached around 2,600 megawatts during peak hours, compared to around 2,000 megawatts during the same period last year — an increase of approximately 600 megawatts.

“This has made it easier for us to manage domestic demand while significantly increasing electricity exports,” he noted.

Imports Decline Despite Rising Demand

Alongside the export surge, the NEA has also managed to reduce electricity imports from India, helping improve Nepal’s trade balance in the energy sector.

From Shrawan to Chaitra of FY 2082/83, Nepal imported 948.1 million units of electricity from India at a cost of Rs 7.39 billion.

In comparison, during the same period last fiscal year, Nepal imported 916.1 million units, spending Rs 9.42 billion.

Although import volume increased slightly, the overall import cost declined considerably, suggesting better load management and improved generation capacity.

According to Ghosh, Nepal is currently exporting between 500 and 600 megawatts of electricity daily to India.

“At present, we are importing around 3,590 megawatt-hours of electricity per day while exporting nearly 7,925 megawatt-hours, reflecting a strong export position,” he said.

Nepal’s Power Capacity Nears 4,000 MW

The NEA said Nepal’s installed electricity generation capacity has now reached nearly 4,000 megawatts, while the country’s peak electricity demand stands at approximately 2,321 megawatts.

The rise in domestic generation has improved Nepal’s energy security while creating stronger export opportunities during surplus production periods.

Financial Outlook Improves for NEA

The increase in electricity production and exports is also expected to strengthen the NEA’s financial position.

Officials at the utility say reduced imports combined with significantly higher exports during the winter season are likely to positively impact the authority’s balance sheet.

“This winter, imports have declined while exports have increased remarkably. There is little doubt that the balance sheet will improve,” an official at the NEA’s Economic Directorate said.

The strong performance comes at a time when Nepal is increasingly positioning hydropower exports as a key pillar of its economy, energy diplomacy, and long-term strategy to earn foreign currency through clean electricity trade with India.