Nepal resumes power exports to Bangladesh after flood disruption

Nepal resumed exporting 40 megawatts of electricity to Bangladesh through India’s transmission network on Friday evening, after the August 26 Bhotekoshi flood damage to two hydropower plants disrupted supplies.

The exports had been suspended after the disaster damaged the Trishuli and Chilime hydropower plants, both of which had been approved to supply electricity to Bangladesh.

Nepal Electricity Authority (NEA) Managing Director Dirghayu Kumar Shrestha said exports resumed after India’s Central Electricity Authority approved electricity generated by other hydropower plants for supply to Bangladesh.

Under the revised arrangement, electricity from the Solu Khola and Kabeli B1 hydropower plants has been approved for export to Bangladesh, while the Lower Modi Khola plant has been cleared to supply Haryana.

The new approvals replace the previous designations for the Trishuli, Chilime and Devighat hydropower plants, reports the Kathmandu Post.

Shrestha said the resumption of exports to Bangladesh, alongside continued electricity sales from other projects despite flood damage to hydropower plants and transmission infrastructure, was an important development for Nepal’s electricity trade.

The renewed exports are expected to help Nepal manage surplus electricity generated during the monsoon and expand regional power trade, he said.

The NEA and the Bangladesh Power Development Board (BPDB) signed a five-year agreement on October 3, 2024, for seasonal electricity exports. Under the agreement, Nepal supplies 40 megawatts of electricity to Bangladesh each year from June 15 to November 15.

Meanwhile, the NEA exported electricity worth Rs5.925 billion to India between mid-September and mid-October 2026, earning more than in the same period last year and the preceding month despite flood damage to several hydropower projects.

According to data from the NEA’s Load Dispatch Centre, Nepal exported 633.986 million units of electricity to India during the period, generating Rs5.925 billion in revenue. Floods had forced some hydropower plants that had received approval to supply electricity to India to shut down, affecting exports.

Export earnings were Rs962 million higher than the Rs4.963 billion recorded during the same period last year and Rs832.5 million above the Rs5.0925 billion earned between mid-August and mid-September this year.

The electricity was sold through two channels. Under bilateral power sales agreements, Nepal supplied electricity to the Indian states of Haryana and Bihar. The remaining power was sold at competitive rates through the day-ahead and real-time markets of the Indian Energy Exchange (IEX).

The NEA exports surplus electricity generated during the monsoon after meeting domestic demand. Under medium-term bilateral power sales agreements, Nepal supplies electricity to Haryana and Bihar from June to October each year.