Kathmandu: Nepal generated a record Rs 29.32 billion from electricity exports during the fiscal year 2025/26 (FY 2082/83), marking the country's highest annual earnings from cross-border power trade. Strong growth in domestic hydropower production, coupled with lower electricity imports, enabled Nepal to record a net energy trade surplus of Rs 18.76 billion, according to the Nepal Electricity Authority (NEA).
The NEA said Nepal exported 3.88 billion units (kWh) of electricity to India and Bangladesh during the fiscal year through the Indian Energy Exchange, NVVN and the trilateral electricity trading arrangement with Bangladesh. Power was sold at an average price of Rs 7.56 per unit, pushing total export earnings to their highest level on record.
Electricity exports increased sharply compared to the previous fiscal year. Export revenue rose by nearly 68 percent, while the volume of electricity sold abroad climbed by about 63 percent year-on-year. The figures reflect Nepal's expanding ability to market surplus hydropower as new generating capacity comes online and regional trading opportunities continue to widen.
At the same time, electricity imports declined significantly. Nepal imported 1.15 billion units of electricity during the fiscal year, a decrease of around 32 percent from the previous year. As import volumes fell, spending on imported electricity also dropped to Rs 10.56 billion, reducing pressure on foreign currency reserves and strengthening the country's overall energy trade balance.
The combination of higher exports and lower imports has transformed Nepal's electricity trade performance. After deducting import expenses from export earnings, the country recorded a net surplus of Rs 18.76 billion, more than four times higher than the Rs 4.54 billion surplus achieved in the previous fiscal year. The sharp improvement highlights how rapidly Nepal's energy sector is shifting from reducing import dependence to generating export income.
According to the NEA, several structural factors contributed to the record performance. Increased hydropower generation, expansion of cross-border transmission infrastructure with India, broader access to regional electricity markets and improvements in grid operation all supported higher exports. The start of electricity exports to Bangladesh under a trilateral agreement also diversified Nepal's export market beyond India for the first time.
The latest figures underline a broader transformation in Nepal's energy economy. Rather than allowing surplus wet-season electricity to go unused, Nepal is increasingly converting excess generation into export revenue while reducing costly imports during periods of domestic supply shortages. This shift strengthens foreign exchange earnings, improves the trade balance and enhances the commercial viability of the country's expanding hydropower industry.
Energy officials expect export volumes to continue rising as more hydropower projects currently under construction begin commercial operation in the coming years. To support that expansion, Nepal is prioritising long-term electricity purchase agreements with India and Bangladesh, along with additional cross-border transmission infrastructure. The record export earnings suggest Nepal is steadily evolving from a traditional electricity importer into an emerging regional exporter of clean hydropower.
