Nepal’s private sector power developers have commended the increasing Nepal-India cross-border electricity trade, with a focus on electricity generated by private hydropower projects exported to India. The Independent Power Producers’ Association of Nepal (IPPAN) executive committee, representing private power developers, expressed satisfaction during a meeting with Indian Ambassador to Nepal Naveen Srivastava. Ambassador Srivastava emphasized the potential for enhanced bilateral cooperation in the hydropower sector, mentioning the Nepal-India Agreement on Long-Term Power Trade signed in 2024, aiming for India to import up to 10,000 MW of electricity from Nepal by 2034.
Nepal has been elevating its electricity exports to India, while private hydropower developers are looking to enter power trading. Despite legal uncertainties preventing the granting of licenses for private companies to engage in power trading, numerous firms have been established with the goal of trading electricity domestically and internationally. Both countries are collaborating on cross-border transmission infrastructure development to facilitate extensive electricity trade, having inked agreements to boost traded electricity volumes.
At the 13th Nepal-India Joint Steering Committee (JSC) meeting, the two nations agreed to enhance electricity trade volumes through two 400 kV cross-border transmission line projects. These projects will allow Nepal to export up to 1,650 MW of electricity to India and import up to 1,400 MW through the Dhalkebar-Muzaffarpur and Dhalkebar-Sitamarhi transmission lines. While the Dhalkebar-Muzaffarpur line has been operational since 2016, the Dhalkebar-Sitamarhi line is nearing completion, as per Nepal’s Ministry of Energy, Water Resources, and Irrigation.
Previously, Nepal and India had agreed on electricity export and import limits through the Dhalkebar-Muzaffarpur line. Both sides are expediting work on new high-capacity cross-border transmission line projects to facilitate increased electricity trade. Besides exporting electricity to India, Nepal has initiated power exports to Bangladesh through Indian transmission infrastructure, marking a significant stride towards enhanced regional energy connectivity in South Asia.
