Nepal’s energy sector has undergone a dramatic transformation. For decades, the country suffered from severe load shedding. Fast forward to fiscal year 2023-24: Nepal became a net exporter of electricity.
According to the Nepal Electricity Authority (NEA), Nepal exported 94 billion units of electricity while importing 83 billion units, earning almost a million dollars in the last fiscal year.
The company generates more power in the wet season than it must purchase in the dry season when water resources diminish. Most Nepalese hydropower plants belong to the ‘run-of-the-river type’. Their output depends on how much water flows in the rivers that drive their production. When the local output falls below domestic needs, NEA must buy power from India. The going export rate is a bit lower than the current import rate, which used to be a lot higher. This, too, helps to create a much healthier energy trade balance.
