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Minister Biraj Bhakta Shrestha responding to lawmakers at the House of Representatives on Tuesday (August 18)

Minister of Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has said that rising electricity exports alone cannot be considered a complete measure of Nepal’s progress in the energy sector, stressing the need to address gaps in domestic consumption, transmission and distribution infrastructure.

Responding to lawmakers at the House of Representatives on Tuesday, Shrestha said the country earned Rs 29.324 billion by exporting electricity to India and Bangladesh in fiscal year 2025/26. He described the exports as a positive development but said they must be viewed alongside the sector’s broader challenges.

Shrestha said electricity generation exceeds domestic demand during the rainy season, while inadequate infrastructure limits domestic consumption, making exports necessary to prevent surplus power from being wasted.

In contrast, electricity generation declines during the dry season as river flows decrease, forcing Nepal to import electricity from India, he said.

He explained that Nepal’s hydropower system is predominantly run-of-river based, resulting in substantial seasonal fluctuations in generation.

Shrestha emphasized that electricity exports and domestic supply are not contradictory issues, calling for separate measures to address challenges related to generation, transmission and distribution.

He also stressed the need to expand infrastructure for greater domestic electricity consumption while increasing transmission and distribution capacity.