Nepal becomes net electricity exporter for the first time in FY 2023-24

KATHMANDU: For the first time, Nepal has become a net electricity exporter with the earnings from electricity export exceeding the spending on its import from India in the 2023-24 fiscal year, authorities here said on Monday. In 2021, India allowed Nepal to sell electricity in its market. At present, Nepal has been exporting 690 MW of electricity to the Indian market.

The Himalayan nation has been exporting its surplus electricity to India in the peak production season starting from June to November. The country imports power from India during the dry season.

"The Nepal Electricity Authority (NEA) exported electricity worth Rs 16.93 billion to India in the fiscal year 2023-24, while we imported electricity worth Rs 16.81 billion from that country in the same period. This way, the NEA made a gain of Rs 120 million from the transaction," NEA spokesperson Chandan Ghosh said.


"We hope to make more profit in the coming days through exporting more electricity to India," he said, adding that Nepal will export electricity only after fulfilling its domestic demands.

The contribution of the electricity generated by the private sector has led to a sizable increase in electricity exports, Ghosh said, recalling how Nepal used to import electricity till 6-7 years ago to reduce its load-shedding hours.

There was a time when Nepal used to face load shedding of up to 16 hours daily during the dry season, he recalled, adding that the country started exporting electricity to India three years ago.

In January, Nepal inked an agreement with India to sell 10,000 MW of electricity over the next 10 years.