Nepal’s NEA (Nepal Electricity Authority) earned Rs 18.26 billion exporting 2,714 GWh of hydropower to India and Bangladesh in FY 2025/26’s first five months, signaling a clean energy shift in South Asia.
From Darkness to Dollars: Nepal's Historic Hydropower Export Breakthrough:
In a striking turnaround for a nation once plagued by blackouts, Nepal pocketed Rs 18.26 billion from exporting 2,714 gigawatt-hours (GWh) of electricity to India and Bangladesh in the first five months of fiscal year 2025/26. This 38% revenue spike from the prior year underscores Nepal’s emergence as a clean energy exporter, injecting vital funds into its economy while helping neighbors curb fossil fuel reliance. With hydropower fueling this shift, the development promises stronger ties in South Asia, though winter shortages highlight the need for sustained infrastructure growth.
Nepal's Electricity Trade with India & Bangladesh Soars:
Nepal’s electricity exports kicked off the fiscal year strong, with the NEA reporting peak shipments of up to 1,200 megawatts (MW) to India and 40 MW to Bangladesh during high-production months. From mid-July to mid-August 2025, earnings hit Rs 1.83 billion. Momentum built, peaking at Rs 5.03 billion between mid-September and mid-October. By mid-December, total exports reached 2,714 GWh, a sharp rise from 1.76 billion units worth Rs 13.2 billion in the same period last year.
Bangladesh-specific trade, which began in June 2025, contributed USD 9.436 million from 147.43 GWh sold at 6.40 US cents per unit. This flowed through India’s grid under a five-year trilateral pact. Overall, the five-month haul exceeded Nepal’s entire FY 2024/25 export earnings of Rs 17.46 billion from 2.35 billion units.
As winter set in, reduced hydropower output flipped the script: Nepal began importing from India during the day while exporting at night. December earnings dipped to Rs 1.10 billion, reflecting seasonal vulnerabilities.
Kulman Ghising to Arun-3: The People and Projects Powering Nepal’s Export Boom:
Nepal’s hydropower saga traces back to the early 20th century, with the first plant commissioned in 1911. For decades, chronic shortages led to 18-hour daily blackouts as recently as 2016. A policy pivot in the 2010s, including private sector incentives and cross-border pacts, changed that. By 2021, Nepal gained access to India’s day-ahead market. The break through with Bangladesh came via a 2024 trilateral deal, launching exports in June 2025.
Today, with over 3,000 MW installed capacity-95% hydro-Nepal harnesses its 6,000 rivers for surplus monsoon power. This not only ended domestic load-shedding by 2023 but turned Nepal into a net exporter in FY 2023/24. Exports now rank as Nepal’s second-largest foreign exchange earner after remittances, fueling GDP growth and reducing trade deficits. Regionally, it aids India’s green transition and Bangladesh’s energy security, cutting coal dependence amid climate pressures.
Key players include NEA Managing Director Kulman Ghising, credited with ending blackouts, and Energy Minister Dipak Khadka, who oversaw recent expansions. Indian firms like SJVN (Satluj Jal Vidyut Nigam) are building projects like the 900 MW Arun-3.