Nepal earned NPR 5.93 billion from electricity exports to India in Aswin (mid-September to mid-October 2026), the third month of fiscal year 2026-27, marking a year-on-year rise despite severe flood damage to multiple hydropower projects, the Nepal Electricity Authority (NEA) confirmed. The figure represents an increase of NPR 962 million over the NPR 4.96 billion earned during the same period in fiscal year 2025-26.

Export Earnings at a Glance

Nepal exported 633.99 million units of electricity to India during Aswin, with revenue also rising by NPR 832.5 million compared with the preceding month of Bhadra (mid-August to mid-September), when the NEA had earned NPR 5.09 billion. For the full first quarter — mid-July to mid-October — cumulative electricity export transactions reached NPR 16.15 billion, according to the NEA.

Approximately two-thirds of the electricity exported to India in Asoj was sold under bilateral agreements, with the remainder traded through the day-ahead and real-time markets of the Indian Energy Exchange, said Dirghayu Kumar Shrestha, Managing Director of the NEA.

Flood Damage and Its Impact on Generation

The earnings growth came despite the devastating floods that struck the Trishuli River following a flash flood in the Bhotekoshi River in Rasuwa on 26 August 2026. The floods damaged 12 hydropower projects — including both operational plants and those under construction — according to the Nepal Development Update, a World Bank publication released earlier this month. Of these, seven were operational and three had received prior approval for electricity exports.

The damage specifically hit the Trishuli and Chilime hydropower plants, which had been authorised to supply electricity to Bangladesh, and also partially disrupted exports to Haryana. As a result, Nepal was unable to export electricity to Bangladesh for part of the third fiscal month.

Bangladesh Exports Resume Under Revised Arrangement

Nepal resumed electricity exports to Bangladesh after India's Central Electricity Authority (CEA) authorised electricity generated by alternative hydropower plants for export. Under a revised arrangement, three projects — Solu, Kabeli-1, and Lower Modi — have been approved to replace supplies previously sourced from the Trishuli, Devighat, and Chilime plants.

Nepal exports electricity to Bangladesh under a tripartite agreement with India and Bangladesh, which permits up to 40 MW of electricity to be routed through India's transmission infrastructure. Shrestha said the resumption 'is expected to help Nepal manage its seasonal electricity surplus and expand cross-border power trade.'

Bilateral Framework and Seasonal Dynamics

Nepal sells electricity to India's Haryana and Bihar states under bilateral power purchase agreements, while surplus power is traded through energy exchange markets. Medium-term bilateral agreements for Haryana and Bihar run from June through October, covering Nepal's wet season when hydropower generation peaks well above domestic demand.

Notably, the CEA has separately approved an additional 31 MW of electricity exports from Nepal, raising total approved export capacity to approximately 1,179 MW. This incremental approval signals continued expansion of Nepal-India power trade even as the two countries navigate post-flood supply disruptions.

What Comes Next

With the alternative hydropower sourcing arrangement now in place and CEA approvals expanding, Nepal's cross-border electricity trade is expected to stabilise heading into the dry season. The long-term trajectory of Nepal-India-Bangladesh power connectivity will depend on the pace of repairs to the damaged projects and further bilateral negotiations on capacity expansion.