Nepal has exported electricity worth nearly Rs 15bn so far in the current fiscal year 2025/26, according to the Nepal Electricity Authority (NEA).  The country has been exporting an average of 1,000 megawatts (MW) of surplus electricity daily since the beginning of the fiscal year in mid-July. NEA officials say the utility is currently exporting around 1,000 MW of electricity every day after meeting domestic demand.

Nepal has been exporting electricity to India and Bangladesh. It received permission to sell energy on the competitive day-ahead market of the Indian Energy Exchange Limited (IEX) in the last week of Oct 2021. In the initial phase, the NEA was permitted to sell a modest 39 MW of electricity generated by Trishuli (24 MW) and Devighat (15 MW). Since then, the volume and value of power exports have steadily increased.

Nepal sells electricity to India through both competitive market mechanisms and bilateral agreements. Along with the day-ahead and real-time markets of the IEX, Nepal also exports electricity to Haryana and Bihar states of India under the government-to-government deals.

In addition, Nepal is exporting 40 megawatts of electricity daily to Bangladesh through India’s transmission network. The power is transmitted from the 400 kV Dhalkebar–Muzaffarpur line in Nepal to India and then routed to Bangladesh via the Behrampur–Bheramara cross-border transmission line. Electricity exports to Bangladesh began on June 15 and are scheduled to continue for five months. The NEA expects to earn around US$ 9.4m from these exports over the period.

Power exports to Bangladesh began in 2023 following a trilateral arrangement among Nepal, India and Bangladesh. Electricity trade with India is conducted in Indian rupees (INR), while transactions with Bangladesh are settled in US dollars. The NEA has received approval to export a total of 1,165 MW of power to India and Bangladesh combined.

In 2024/25, Nepal exported electricity worth approximately Rs 17.4bn to India and Bangladesh. Total exports reached 2.35bn units, with India accounting for Rs 17.19bn of the purchases and Bangladesh for Rs 266.7m.

Nepal has been exporting electricity generated by projects like Trishuli (23.28 MW), Devighat (14.55 MW), Marsyangdi (67 MW), Kali Gandaki A (140 MW), Middle Marsyangdi (68 MW), Likhu IV (51 MW), Chilime (21.44 MW), Solu Khola (22.80 MW), Kabeli B1 (24.25MW), Lower Modi (19.40 MW), Upper Kaligandaki (32.70 MW), Upper Chamelia (37.30 MW), Upper Dordi A (24.25 MW) and Upper Balephi A (34.92 MW).