Key Takeaways
- • Nepal exported electricity worth Rs. 5.09 billion (approximately $38.2 million USD equivalent) during the Bhadra period (August 17 to September 16, 2026), totaling 565.60 million units to India and Bangladesh.
- • Bilateral agreements accounted for 421.6 million units generating Rs. 3.64 billion in revenue, while Indian Energy Exchange trading generated Rs. 1.45 billion from 143.9 million units, demonstrating diversified export channels.
- • Bangladesh electricity exports have been suspended following structural damage to the Chilime and Trishuli hydropower projects caused by the Bhotekoshi River flood on August 26, 2026, creating operational constraints on the tripartite supply arrangement.
- • The Nepal Electricity Authority is actively pursuing Indian regulatory approval to resume Bangladesh electricity supplies from alternative hydropower projects, indicating strategic coordination with cross-border energy trading partners.
Summary
Nepal generated Rs. 5.09 billion in electricity export revenue during the one-month Bhadra period (August 17 to September 16, 2026), according to the Nepal Electricity Authority. The export volume of 565.60 million units was distributed across two primary sales mechanisms: bilateral agreements and the Indian Energy Exchange market. This dual-channel approach reflects Nepal's growing integration into South Asian energy markets and its capacity to monetize hydroelectric surplus production.
Bilateral agreements with India dominated export activity, accounting for 74.6% of total volume (421.6 million units) and generating Rs. 3.64 billion in revenue. The remaining 143.9 million units (25.4% of volume) were transacted through India's Energy Exchange, yielding Rs. 1.45 billion. This revenue split indicates differential pricing between negotiated long-term contracts and spot market trading, with bilateral arrangements commanding premium valuations.
A significant operational disruption emerged mid-period when the Bhotekoshi River flood on August 26, 2026, caused structural damage to the Chilime and Trishuli hydropower projects, prompting immediate suspension of electricity exports to Bangladesh. The NEA has requested Indian regulatory approval to resume Bangladesh supply flows from alternative hydroelectric facilities, underscoring the infrastructure vulnerability and the tripartite arrangement's reliance on specific generation assets. This suspension represents material revenue risk to Nepal's cross-border energy trade until infrastructure remediation and approvals are secured.
The export data demonstrates Nepal's strategic role as a regional power supplier within South Asia's energy framework. Continued export growth depends on hydropower asset availability, regulatory coordination across borders, and sustained demand from India and Bangladesh markets.
Bilateral agreements with India dominated export activity, accounting for 74.6% of total volume (421.6 million units) and generating Rs. 3.64 billion in revenue. The remaining 143.9 million units (25.4% of volume) were transacted through India's Energy Exchange, yielding Rs. 1.45 billion. This revenue split indicates differential pricing between negotiated long-term contracts and spot market trading, with bilateral arrangements commanding premium valuations.
A significant operational disruption emerged mid-period when the Bhotekoshi River flood on August 26, 2026, caused structural damage to the Chilime and Trishuli hydropower projects, prompting immediate suspension of electricity exports to Bangladesh. The NEA has requested Indian regulatory approval to resume Bangladesh supply flows from alternative hydroelectric facilities, underscoring the infrastructure vulnerability and the tripartite arrangement's reliance on specific generation assets. This suspension represents material revenue risk to Nepal's cross-border energy trade until infrastructure remediation and approvals are secured.
The export data demonstrates Nepal's strategic role as a regional power supplier within South Asia's energy framework. Continued export growth depends on hydropower asset availability, regulatory coordination across borders, and sustained demand from India and Bangladesh markets.
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