SATV Kathmandu, Aug, 09: At a time when the country’s export trade has not been encouraging, Nepal managed to export power worth Rs. 17.46 billion to India and Bangladesh in the last fiscal year 2024/25, indicating that electricity could emerge as the key export product of Nepal soon.
Nepal Electricity Authority (NEA) has exported 2.35 billion units of electricity worth about Rs. 17.46 billion during the last fiscal year 2024/25, said Rajan Dhakal, spokesperson for Nepal Electricity Authority.
Of total export, electricity worth about Rs. 17.19 billion was exported to India while Bangladesh purchased power worth Rs. 266.7 million from Nepal, he said. The export of electricity has increased by 3.31 per cent in terms of monetary value, and 21 per cent in terms of quantity during the last fiscal year as compared to previous fiscal year.
The NEA exported 1.94 billion units of electricity worth Rs. 16.9 billion to India in 2023/24. Minister for Energy, Water Resources and Irrigation Dipak Khadak said that the result was achieved due to Nepal's hydropower potential, production capacity, management, and reliable cooperation with neighbouring countries.
Minister Khadka said that the achievement made by Nepal in electricity trade has proved to be an important milestone in the journey towards energy diplomacy and economic prosperity. This progress is important not only in terms of the volume of exports but also in terms of trade balance, he added.
Last year, electricity worth about Rs. 12.92 billion was imported from India, but the volume of imports has been gradually decreasing.
Minister Khadka said that Nepal has become a net exporter in electricity trade. During the review period, the value of Nepal’s exported power was higher by Rs. 4.5 billion than cost of the imported electricity.
In the fiscal year 2023/24, Nepal became a net exporter, exporting just a little more than its total imports.
The NEA imported electricity worth Rs. 16.81 billion in the fiscal year 2023/24 and exported electricity worth Rs. 16.9 billion.
Spokesperson Dhakal said that the export of surplus electricity will gradually increase in the coming days as around 700 MW electricity is being connected to the national grid annually.
He said that electricity export is increasing significantly, more than total imports, and this would contribute significantly to reducing Nepal's trade imbalance. Since last year, Nepal has been exporting power beyond India. As per the tripartite agreement with Bangladesh, Nepal has been exporting 40 megawatts of electricity to Bangladesh, and it is likely to increase further in the coming days.
Electricity is being sold to Bangladesh at 6.40 US cents per unit, which has also had a positive impact on foreign exchange earnings. Nepal has started exporting electricity to Bangladesh commercially in dollars for the first time from mid-June this year.
Electricity export to the Indian energy market (day-ahead and real-time markets) at competitive prices targeting the time of increased water flow and production during the rainy season has been a big relief for Nepal reeling under high trade deficit.
At the same time, regular supplies are also being made to India through NVVN on the basis of medium-term agreements.
Nepal is currently exporting more than 700 MW of electricity daily to various states of India.
The electricity produced in Nepal has started reaching Bangladesh from Nepal's 400 kV Dhalkebar substation via Muzaffarpur, Behrampur in India to Bheramara substation in Bangladesh.
