Er.energyNP@Gmail.com

Cross-border electricity import and export statistics for fiscal year 2024/25, and the review year 2025/26, released by the Nepal Electricity Authority (NEA) show that Nepal has achieved a new milestone in its energy sector. During the review year FY 2025/26, Nepal earned a total of Rs. 29.32 billion from electricity exports to India and Bangladesh, representing a 67.96 percent increase compared to the previous fiscal year.

According to NEA data, Nepal exported 2.3829 billion units (kWh) of electricity in FY 2024/25, generating Rs. 17.46 billion in revenue. In the review year FY 2025/26, export volume increased by 62.89 percent to 3.877492 billion units. The historic export earnings were achieved by selling electricity at an average price of Rs. 7.56 per unit through the Indian Energy Exchange (IEX-DAM and IEX-RTM), NVVN, and the trilateral power trade arrangement with Bangladesh.

While export earnings surged to a record high, Nepal’s electricity imports from external sources declined significantly during the review year. In FY 2024/25, Nepal imported 1.6804 billion units of electricity, spending Rs. 12.92 billion. In FY 2025/26, import volume fell by 31.57 percent to 1.1498 billion units. Consequently, total import expenditure dropped to Rs. 10.56 billion, a decline of 18.29 percent from the previous fiscal year.

After deducting the total electricity import cost of Rs. 10.56 billion from export earnings of Rs. 29.32 billion, Nepal recorded a net electricity trade surplus of Rs. 18.76 billion in FY 2025/26. In comparison, the net trade surplus in FY 2024/25, stood at only Rs. 4.54 billion, meaning the surplus increased by 313 percent - more than four times - in the review year.

The sharp rise in domestic hydropower generation, expansion of cross-border transmission infrastructure, and effective energy management have strengthened Nepal’s position as a self-reliant and profitable electricity-exporting nation in South Asia.

Nepal Purbadhar