Nepal experienced a significant boost in earnings from electricity exports in the fiscal year 2025-26, with a notable increase in surplus hydropower exports to India and Bangladesh during the wet season. The Nepal Electricity Authority reported that the country earned NPR 29.32 billion from electricity exports to India and Bangladesh, marking a 67.96% surge compared to the previous fiscal year, representing the highest annual revenue from electricity exports.
In the preceding fiscal year 2024-25, Nepal earned NPR 17.46 billion from electricity exports, with a rise in electricity exports from 2.3829 billion units to 3.877 billion units in fiscal year 2025-26. The record earnings were attributed to selling electricity at an average price of NPR 7.56 per unit, as per the NEA data.
Nepal’s dependence on imported electricity notably decreased in the last fiscal year, with a 31.57% reduction in electricity imports, leading to a net electricity trade surplus of NPR 18.76 billion in fiscal year 2025-26. This shift was credited to increased domestic hydropower generation, enhanced cross-border transmission infrastructure, and improved energy management, positioning Nepal as a robust electricity exporter in South Asia.
During the recent Nepal-India Joint Steering Committee meeting, the two nations agreed to enhance cross-border electricity trade through the development of two transmission line projects, enabling Nepal to export up to 1,650 MW of electricity to India and import up to 1,400 MW through specific cross-border transmission lines.
