Electricity Exports: Powering Nepal’s Economic Engine

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.