Prime Minister KP Sharma Oli has claimed that Nepal earned a net profit of Rs 4.5 billion from electricity exports this year. Posting on social media, he said the country has reduced its imports from India, improved supply to industries, and sold power worth Rs 4.5 billion more than it imported. The net profit marks the first time Nepal has made a substantial surplus in electricity trade. The jubilant PM claimed, "We have been reducing electricity imports. In the past, industries still faced power cuts even after households were free from load-shedding. Now, supply to industries has improved, and we have succeeded in exporting electricity worth Rs 4.5 billion this year.” The new shift is significant for a country whose overall export trade has been sluggish. Nepal exported 2.35 billion units of electricity valued at around Rs 17.46 billion in the fiscal year 2024/25, according to the Nepal Electricity Authority (NEA). India purchased electricity for Rs 17.19 billion, while Bangladesh bought power for Rs 266.7 million. The volume of electricity exports rose by 21 percent compared to last year, and the monetary value increased by 3.31 percent. Imports, which stood at Rs 12.92 billion last year, have been declining. Selling electricity to India during the rainy season, when hydropower plants operate at maximum capacity, has made this possible. At the same time, exports to Bangladesh at 6.40 US cents per unit, paid in dollars, have strengthened Nepal's foreign exchange earnings. Around 700 MW is being added to the national grid each year, and NEA officials say surplus exports will continue to rise.
Nepal exports electricity worth Rs 8.32 billion to India
Daily sales of over 700 MW to India, along with the start of commercial exports to Bangladesh in June, suggest that electricity is on track to become one of Nepal's main export commodities. Private hydropower producers have been central to this growth. The NEA serves as the main purchaser and distributor of the numerous privately funded new projects that feed into the national grid. These producers have assisted Nepal in transitioning from power shortages to surplus generation during the rainy season, and they frequently complete projects faster than state-run enterprises. As more medium- and large-scale projects are undertaken, their role is probably going to expand. Projects involving transmission lines must be expedited while regional diplomacy can attract new buyers, long-term power purchase agreements with Bangladesh and India will establish a steady market for surplus energy.
Meanwhile, addressing the seasonal production gap is also crucial. Since the seasonal imports of energy from India take up a significant amount of our revenue, imports during the dry season continue to be a worrying aspect. One best practical solution to resolve this issue is to promote reservoir-based electricity projects. This will guarantee year-round production and lessen the need for expensive imports. Technologies for energy storage, such as pumped storage hydropower, would also contribute to the expansion of power supply and generation. For Nepal, electricity can move from being a secondary source of income to a vital component of the national economy if Nepal can secure export markets, increase generation steadily, and decrease imports during the dry season. The recent net profit of Rs 4.5 billion is a good beginning, but it will take long-term planning, funding, and cooperation from the public and private sectors as well as from regional partners like Bangladesh and India to replicate the recent gain in years to come.
