Nepal earns record NPR 29.32 billion from electricity exports to India, Bangladesh in FY2025-26
Synopsis
Nepal has quietly become South Asia's most consequential hydropower exporter. In just four years — from a 39 MW debut on India's power market in 2021 to over 1,000 MW during monsoon peaks — the country has posted a record NPR 29.32 billion in export earnings for FY2025-26, cut its import bill by nearly a fifth, and is now negotiating a 1,650 MW export ceiling with India. The energy surplus story is real, and it is accelerating.
Key Takeaways
Nepal earned a record NPR 29.32 billion from electricity exports in fiscal year 2025-26 — the highest ever recorded by the NEA .
Export volumes rose from 2.3829 billion units to 3.877 billion units , a 67.96% revenue increase year-on-year.
Electricity imports fell 31.57% , bringing the import bill down to NPR 10.56 billion and yielding a net trade surplus of NPR 18.76 billion .
Nepal now exports more than 1,000 MW to India during the monsoon season and 40 MW to Bangladesh via India's grid.
At the 13th Nepal-India Joint Steering Committee meeting, both countries agreed to raise Nepal's export ceiling to 1,650 MW through the 400 KV Dhalkebar-Muzaffarpur and Dhalkebar-Sitamarhi lines.
Nepal earned a record NPR 29.32 billion from electricity exports to India and Bangladesh in fiscal year 2025-26, a 67.96% jump over the previous year, according to cross-border electricity trade data released by the Nepal Electricity Authority (NEA). The figure marks the highest annual export revenue the state-owned utility has ever recorded, driven by a surge in surplus hydropower during the wet season.
Record Exports and Revenue
Nepal exported 3.877 billion units (kWh) of electricity in fiscal year 2025-26, up from 2.3829 billion units in fiscal year 2024-25 — a significant volume increase that, combined with an average selling price of NPR 7.56 per unit, pushed total earnings well past the previous year's NPR 17.46 billion. India remains the primary destination for Nepal's power exports, with Bangladesh receiving a portion through India's transmission grid.
Import Dependence Falls Sharply
While export earnings surged, Nepal's reliance on imported electricity declined markedly. Electricity imports fell 31.57% — from 1.6804 billion units in fiscal year 2024-25 to 1.1498 billion units in fiscal year 2025-26. The total import bill dropped 18.29% to NPR 10.56 billion, down from NPR 12.92 billion the previous year. As a result, Nepal recorded a net electricity trade surplus of NPR 18.76 billion in fiscal year 2025-26 — a milestone that underscores its shift from a power-deficit nation to a net exporter.
How Nepal Sells Power to India
Nepal exports electricity to India through three mechanisms: the Indian Energy Exchange Day-Ahead Market (IEX-DAM), the Real-Time Market (IEX-RTM), and a long-term power trading arrangement with NTPC Vidyut Vyapar Nigam (NVVN). Since Nepal was first permitted to sell power on India's market in 2021 — initially capped at just 39 MW — approved export volumes have grown steadily. Nepal now exports more than 1,000 MW to India during the monsoon season, while Bangladesh currently imports 40 MW through India's transmission network.
Bilateral Expansion on the Horizon
At the 13th meeting of the Nepal-India Joint Steering Committee (JSC) — an Energy Secretary-level bilateral mechanism held in Nepal last week — the two countries agreed to scale up cross-border electricity trade through two transmission line projects. Under the agreement, Nepal would be able to export up to 1,650 MW to India and import up to 1,400 MW through the 400 KV Dhalkebar-Muzaffarpur and Dhalkebar-Sitamarhi cross-border transmission lines.
NEA's Assessment
The NEA attributed the record performance to increased domestic hydropower generation, expansion of cross-border transmission infrastructure, and improved energy management. 'The figures highlight Nepal's growing strength in the regional energy market,' the NEA said. 'Increased domestic hydropower generation, expansion of cross-border transmission infrastructure, and improved energy management have enabled the country to emerge as a strong, self-reliant, and profitable electricity exporter in South Asia.' With new transmission capacity in the pipeline, Nepal's export potential in the coming fiscal years is set to grow further.
Point of View
000 MW in four monsoon seasons is a policy success story that rarely gets its due. The real question now is whether the Dhalkebar transmission upgrades materialise on schedule: Nepal's hydropower potential is seasonal and perishable, and every delayed transmission project is revenue left on the table. For India, Nepal's surplus is a cheap, clean complement to its own renewable push — but grid integration at scale requires regulatory coordination that neither side has fully stress-tested yet.
NationPress
23 Jul 2026
Frequently Asked Questions
How much did Nepal earn from electricity exports in FY2025-26?
Nepal earned NPR 29.32 billion from electricity exports to India and Bangladesh in fiscal year 2025-26, according to data released by the Nepal Electricity Authority (NEA). This is the highest annual export revenue the NEA has ever recorded, representing a 67.96% increase over the NPR 17.46 billion earned in FY2024-25.
Which countries does Nepal export electricity to?
Nepal exports electricity primarily to India, which is its largest buyer. A portion of Nepal's power is also exported to Bangladesh, which currently imports 40 MW through India's transmission network. Nepal sells power to India via the IEX Day-Ahead Market, Real-Time Market, and through a long-term arrangement with NTPC Vidyut Vyapar Nigam (NVVN).
What is Nepal's net electricity trade position in FY2025-26?
Nepal recorded a net electricity trade surplus of NPR 18.76 billion in FY2025-26. While it earned NPR 29.32 billion from exports, its import bill fell 18.29% to NPR 10.56 billion after electricity imports dropped 31.57% to 1.1498 billion units.
What did Nepal and India agree on at the Joint Steering Committee meeting?
At the 13th meeting of the Nepal-India Joint Steering Committee held in Nepal last week, both countries agreed to increase cross-border electricity trade through two projects. Nepal would be able to export up to 1,650 MW to India and import up to 1,400 MW through the 400 KV Dhalkebar-Muzaffarpur and Dhalkebar-Sitamarhi transmission lines.
How has Nepal's electricity export capacity grown since 2021?
Nepal was first permitted to sell electricity on India's power market in 2021, starting with just 39 MW. By FY2025-26, Nepal was exporting more than 1,000 MW to India during the monsoon season. The 13th JSC agreement is set to raise the ceiling further to 1,650 MW through upgraded transmission infrastructure.
