Nepal can now export over 450 MW of electricity to India, which has agreed to purchase power generated by two additional hydropower projects in Nepal. According to the Nepal Electricity Authority (NEA), India has agreed to buy the power generated by two more projects: Kabeli B 1 (24.25MW) and Lower Modi (24.25MW) (19.4MW).

Nepal has temporarily ceased exporting power due to reduced output, but it will be able to sell more when it resumes shipment to India during the forthcoming wet season.

Previously, Nepal was permitted to sell up to 408 MW of power from eight projects in the Indian market.

Nepal has exported power worth over Rs 12 billion since India first allowed Nepal's power projects to sell in the Indian market in November last year. According to the NEA, since it commenced exporting power in early June this year, it has earned Rs 11.16 billion from power trade.

On December 16, a Nepali delegation visited India to participate in the South Asia (BBIN) Power Summit on grid connectivity organised by the Confederation of Indian Industries (CII). Indian officials informed the delegation that work is underway to approve more Nepali projects with a combined capacity of 150MW.

Ashish Garg, vice-president of the Independent Power Producers’ Association of Nepal, said officials from the Central Electricity Authority of India have notified that the approval process for an additional 150MW was underway.

The NEA has projected there would be an addition of 705MW to the country’s power system by the end of the current fiscal year 2022-23. Currently, Nepal’s power projects have an installed capacity of over 2,200 MW.

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