Electricity has emerged as a vital export commodity for Nepal, with the South Asian country posting record earnings from power exports to India and Bangladesh in the fiscal year 2025-26 ending in mid-July.
According to the Nepal Electricity Authority (NEA), the state-owned power utility responsible for electricity trading, Nepal earned a total of 29.32 billion Nepalese rupees (189.84 million U.S. dollars) from electricity exports in fiscal year 2025-26, up 67.96 percent from the previous fiscal year. It is the highest annual revenue NEA has ever generated from electricity exports.
In terms of volume, electricity exports increased from 2.3829 billion units (kWh) in fiscal year 2024-25 to 3.877 billion units in fiscal year 2025-26.
Nepal generates surplus electricity during the wet (monsoon) season but has to import power during the dry (winter) season because most of its run-of-river hydropower projects generate only about one-third of their monsoon output in winter.
Nepal imports electricity from India during the dry season. However, as domestic electricity generation has expanded rapidly, the country's dependence on imported power has declined in recent years.
In fiscal year 2025-26, Nepal imported 1.1498 billion units of electricity, down from 1.6804 billion units in fiscal year 2024-25.
"Increased domestic hydropower generation, expansion of cross-border transmission infrastructure, and improved energy management have enabled Nepal to become a net electricity exporter in South Asia," NEA said.
-XINHUA
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