SATV, Kathmandu, July 24: Nepal has achieved a historic milestone in cross-border electricity trade, earning a record Rs. 29.32 billion from electricity exports to India and Bangladesh during the fiscal year 2025/26.

According to the Nepal Electricity Authority (NEA), electricity export earnings increased by 67.96 per cent in the last fiscal year as compared to the previous fiscal year, driven by a sharp rise in export volumes and growing regional demand for Nepal's hydropower.

The NEA exported 3.877 billion units (kWh) of electricity during the review fiscal year, up 62.89 per cent from 2.383 billion units exported in fiscal year 2024/25. 

Electricity was sold at an average price of Rs. 7.56 per unit through India's power exchanges—including the Indian Energy Exchange's Day-Ahead Market (IEX-DAM), Real-Time Market (IEX-RTM), and NVVN—as well as under the trilateral power trade arrangement with Bangladesh.

In the previous fiscal year, the country had earned Rs. 17.46 billion from electricity exports.

Meanwhile, the country's dependence on imported electricity declined significantly during the last fiscal year. 

The electricity imports fell by 31.57 per cent to 1.15 billion units in fiscal year 2025/26 from 1.68 billion units a year earlier.

As a result, Nepal's electricity import bill dropped by 18.29 per cent to Rs. 10.56 billion, down from Rs. 12.92 billion in fiscal year 2024/25.

The higher export earnings coupled with lower import costs enabled the country to post a net electricity trade surplus of Rs. 18.76 billion during the review year. 

In comparison, the net surplus stood at only Rs. 4.54 billion in fiscal year 2024/25, meaning the surplus increased by 313 per cent, or more than fourfold, during the review year.

The sharp rise in domestic hydropower generation, expansion of cross-border transmission infrastructure, and more effective energy management have enabled Nepal to establish itself as a strong, self-reliant, and profitable electricity exporter in South Asia.