Nepal seeks fourfold increase in hydropower supplies to India

Nepal aims to quadruple hydropower supplies to neighboring India, helping New Delhi meet its growing electricity needs as the war in the Middle East complicates resource planning.

The Himalayan nation is looking to nearly double its contribution to India’s grid to 1.1 gigawatts this summer, when high temperatures are expected to drive record demand, according to Hitendra Dev Shakya, managing director at state-run Nepal Electricity Authority. In about two years, Nepal should be able to share 2.5 gigawatts thanks to a more modern grid infrastructure.

The plan comes as hostilities escalate in the Middle East, from where India sources a large share of its fuel. Gas shortages due to attacks on facilities and the closure of the Strait of Hormuz are testing the nation’s energy resilience, at a time of year when consumption typically spikes.


The war has restricted the flow of liquefied petroleum gas, used in more than 330 million Indian homes for cooking, and growing scarcity of natural gas could affect power plants that rely on the fuel to meet electricity demand during the night, when solar energy runs out.

While Nepal’s contribution would be relatively small in the context of India’s power needs, expected to reach 283 gigawatts this summer, it could help mitigate any shortages caused by the war. Last year, Nepal supplied 600 megawatts of round-the-clock hydropower to India during the six months through November. This year, it’s seeking bids from potential buyers to export another 500 megawatts, Shakya said.