Nepal will be importing up to Rs 654 MW of electricity from India during this winter, with the southern neighbor expressing its consent to increase electricity supply to the Himalayan country.

As the Nepal Electricity Authority (NEA) faces challenges to ensure smooth electricity supply in the upcoming dry season due to disruption in power production by a number of power plants including the Upper Tamakoshi Hydropower Project, India’s accord has given the authority some respite.

Chandan Kumar Ghosh, spokesperson for the NEA, said India on Wednesday expressed its consent to increase electricity supply to Nepal. “With the new development, Nepal can now import up to 654 MW of electricity when needed,” said Ghosh.

By renewing a medium-term agreement on cross-border electricity trade with Nepal on March 28, 2024, India agreed to allow Nepal to import 554 MW of electricity from the Indian market. However, the southern neighbor imposed a condition that it would be selling its electricity to Nepal only during the day time (from 6 am to 6 pm).

By extending the quota for electricity trade, India has also shown flexibility in trading hours. According to the NEA, India has now allowed Nepal to purchase electricity for 20 hours a day. India however has put restrictions on providing electricity during peak evening hours from 5 pm to 9 pm. The new provision will be into effect till March 15, 2025.

As most of the hydropower projects across the country are run-of-the-river in nature, Nepal faces a heavy decline in the production of electricity in its hydropower projects with the onset of winter. The NEA has projected production of just 1,100 MW of electricity during winter this year, despite having a total installed capacity of 3,200 MW across the country.

Although the new provision on electricity imports from India could help the NEA to manage electricity supply to its customers to some extent, the power-utility still faces challenges as India is reluctant to provide electricity during the peak hours.

Electricity production from the 456 MW Upper Tamakoshi Hydropower Project, one of the biggest power plants, has completely stopped since the September floods devastated the project. Although the maintenance has been started, the project is estimated to take another 8-10 months to come into full-fledged operation.