Nepal has achieved remarkable success in its strategy to boost electricity exports to foreign markets. In the recently completed Fiscal Year (FY) 2024/25, Nepal exported electricity worth more than Rs. 17.46 billion to India and Bangladesh, marking a significant milestone in the country's energy trade efforts.
This achievement is the result of coordinated management of Nepal’s hydropower potential, electricity production capacity, and trustworthy cooperation with neighboring countries. According to the Nepal Electricity Authority (NEA), during FY 2024/25, the country exported approximately Rs. 17.19 billion worth of electricity to India and Rs. 267 million to Bangladesh. The total export amount exceeded Rs. 17.46 billion, representing a noteworthy increase from the previous FY.
Minister for Energy, Water Resources and Irrigation Deepak Khadka described this progress as a major milestone in Nepal’s energy diplomacy and its journey toward economic prosperity. He emphasized that this growth is significant not only in terms of export quantity but also in maintaining trade balance. While Nepal imported electricity worth approximately Rs. 12.92 billion from India in the same FY, the volume of imports has been steadily declining. This trend, he said, is accelerating Nepal's transition from a net electricity importer to a net exporter.
Nepal exports electricity worth Rs 8.32 billion to India
Nepal’s electricity export network is no longer confined to India. In line with a tripartite agreement, the country has been exporting 40 MW of electricity to Bangladesh. This trade, conducted at a rate of 6.40 US cents per unit, is expected to expand further and is already contributing positively to Nepal’s foreign exchange earnings. Notably, under Minister Khadka’s initiative, Nepal began exporting electricity to Bangladesh in US dollars for the first time, setting a precedent in the region.
The tripartite collaboration among Nepal, India and Bangladesh has advanced swiftly under Minister Khadka’s coordination, covering political agreements and technical preparations. Electricity is being transmitted to Bangladesh via India’s NTPC Vidyut Vyapar Nigam Ltd (NVVN), demonstrating the strategic foresight of the current leadership. This cross-border electricity trading arrangement is being lauded as a model of visionary diplomacy and regional cooperation.
Capitalizing on high river flows and increased production during the monsoon season, Nepal has begun supplying power to the Indian energy market through competitive platforms such as the Day-Ahead Market (DAM) and Real-Time Market (RTM). Additionally, a mid-term agreement through NVVN ensures consistent electricity supply to India. At present, Nepal is exporting more than 700 MW of electricity daily to different Indian states.
Nepali electricity now reaches Bangladesh through key transmission corridors like the 400 kV Dhalkebar–Muzaffarpur inter-country transmission line and the Baharampur–Bheramara line along the India-Bangladesh border. These infrastructural linkages have become vital routes for regional electricity trade.
At the heart of Nepal’s current energy success lies Minister Khadka’s effective leadership, long-term vision and determination to foster regional energy partnerships. His proactive role is not only helping to make Nepal energy self-reliant but also positioning the country as a leader in regional energy diplomacy.
The progress made in the energy sector is not merely statistical; it is a living testament to Nepal’s growing international image, sound economic governance and capacity in energy diplomacy. Nepal’s hydropower is no longer just a source of energy—it is a cornerstone of prosperity. Turning this potential into reality requires capable leadership and Minister Deepak Khadka has stood firmly at the forefront of this transformation.
Expressing his gratitude to everyone who contributed to making Nepal a recognized electricity-exporting nation, Minister Khadka called on all stakeholders to unite in the mission of transforming Nepal into a prosperous country through energy-driven growth.
