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Nepal’s electricity exports have continued to grow, generating more than Rs 5.09 billion in revenue in recent months, but severe flood damage to hydropower infrastructure has raised concerns over the sustainability of the country’s expanding power export drive.

Of the total electricity exported, 421.62 million units worth more than Rs 3.64 billion were supplied to Bangladesh and the Indian states of Haryana and Bihar under bilateral power trading arrangements.

Nepal also exported 143.98 million units through India’s electricity exchange market, earning approximately Rs 1.44 billion in revenue.

The growing export momentum, however, has been disrupted by the devastating Bhotekoshi floods of August 26, which caused extensive damage to hydropower infrastructure in Rasuwa and Nuwakot. The disaster forced Nepal to halt electricity exports to Bangladesh.

The Nepal Electricity Authority (NEA) is now awaiting approval from India to resume power exports to Bangladesh using electricity generated by other hydropower projects.

The floods damaged infrastructure associated with 11 hydropower projects with a combined generation capacity of 405 MW, along with a 25 MW solar project in Rasuwa and Nuwakot. The damage has disrupted power generation and transmission facilities at a time when Nepal is seeking to expand its presence in regional electricity markets.

The disruption has also highlighted the vulnerability of Nepal’s power infrastructure to extreme weather events. With hydropower increasingly emerging as a major export commodity, prolonged damage to generation and transmission facilities could affect the country’s ability to maintain reliable electricity supplies for cross-border trade, according to sector’s experts.

Nepal’s latest export figures underscore the increasing economic importance of electricity exports. At the same time, the flood damage has exposed infrastructure risks that could pose challenges to the country’s ambitions to expand regional power trade in the coming months.