India Cuts Power Supply Hours to Nepal, Increases Import Capacity

Kathmandu — India has reduced the number of hours Nepal can import electricity while increasing the total volume available for purchase, introducing a mixed impact on Nepal’s energy management. Under the new arrangement, Nepal will now be allowed to import electricity for only 16 hours per day, although the maximum import capacity has been raised to 950 MW.According to the Nepal Electricity Authority, the revised provision comes as India renewed its approval for Nepal to purchase electricity through its Indian Energy Exchange (IEX) market. Previously, Nepal was allowed to import up to 654 MW of electricity around the clock.As per the updated schedule, Nepal will be able to import electricity 24 hours a day from April 1 to April 15. However, from April 16 to April 30, imports will be limited from 2 AM to 6 PM, and from May to August, from 4 AM to 8 PM. India has historically restricted electricity supply during nighttime and peak demand hours, and the new schedule continues that trend.In terms of supply sources, Nepal can import up to 600 MW through the Dhalkebar–Muzaffarpur 400 kV cross-border transmission line, 50 MW from Uttar Pradesh, and between 220 MW (April–May) to 300 MW (subsequent months) from Bihar.Currently, Nepal imports around 400 MW of electricity on average. During the dry season, when river flows decline and domestic hydropower generation drops, reliance on electricity imports becomes essential to meet demand.Officials suggest that India’s decision to reduce supply hours may also be influenced by global factors, particularly rising tensions in the Middle East affecting fuel supply and increasing domestic electricity demand within India.Although reduced nighttime imports could create challenges in managing domestic demand, the Authority has indicated that alternative arrangements are in place. Nepal is already importing 180 MW of electricity round-the-clock under an agreement with India’s Power Trading Company (PTC India). Additionally, provisions exist to procure extra electricity through the Nepal–India Power Exchange Committee (PEC) if needed.To manage supply efficiently, the Authority plans to import more electricity during daytime and store water in reservoir and semi-reservoir hydropower projects, allowing increased generation during the evening. However, with rising temperatures, electricity demand is expected to reach up to 2,400 MW, which could strain the system.Despite these challenges, the Authority remains confident that overall supply can be managed. Officials note that domestic power generation is expected to increase by the end of Jestha (mid-June), and surplus electricity may even be exported from Asar (mid-June/July) onward, easing long-term pressure on the energy sector.