Kathmandu: Nepal has achieved its highest-ever annual earnings from electricity exports, generating NPR 29.32 billion during the fiscal year 2025-26 by exporting surplus hydropower to India and Bangladesh, according to the Nepal Electricity Authority (NEA).

The record revenue marks a 67.96 per cent increase compared to the previous fiscal year, reflecting Nepal’s growing role as a regional clean energy exporter.

Electricity exports rise nearly 68%, imports decline

According to data released by the Nepal Electricity Authority (NEA), Nepal exported 3.877 billion units (kWh) of electricity during FY 2025-26, up from 2.3829 billion units in the previous fiscal year.

The exports generated NPR 29.32 billion, compared to NPR 17.46 billion earned in FY 2024-25. The electricity was sold at an average price of NPR 7.56 per unit.

At the same time, Nepal’s dependence on imported electricity declined significantly. Electricity imports dropped by 31.57 per cent to 1.1498 billion units, while the country’s import bill fell by 18.29 per cent to NPR 10.56 billion.

As a result, Nepal recorded a net electricity trade surplus of NPR 18.76 billion during the fiscal year.

India remains Nepal’s biggest electricity market

India continued to be the largest buyer of Nepal’s surplus electricity, while Bangladesh imported power through India’s cross-border transmission network.

Nepal exports electricity to India through the Indian Energy Exchange (IEX), including the Day-Ahead Market (DAM) and Real-Time Market (RTM), as well as under a long-term agreement with NTPC Vidyut Vyapar Nigam (NVVN).

The NEA credited the record earnings to increased domestic hydropower generation, expansion of cross-border transmission infrastructure and improved energy management.

Nepal plans to expand cross-border power trade

Nepal’s electricity exports have grown rapidly since it first received approval to sell power in India’s electricity market in 2021, when exports were limited to 39 MW.

The country now exports more than 1,000 MW to India during the monsoon season, while Bangladesh imports 40 MW through India’s transmission system.

During the recent 13th Nepal-India Joint Steering Committee (JSC) meeting, both countries agreed to further strengthen cross-border electricity trade through the 400 KV Dhalkebar-Muzaffarpur and Dhalkebar-Sitamarhi transmission lines.

Under the agreement, Nepal will be able to export up to 1,650 MW of electricity to India and import up to 1,400 MW, paving the way for greater regional energy cooperation.

The latest figures highlight Nepal’s emergence as a major hydropower exporter in South Asia, supported by rising renewable energy production and expanding cross-border connectivity.