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Efforts to deepen regional power connectivity have opened up the possibility of Nepal exporting surplus electricity to Sri Lanka through India, potentially expanding the country's cross-border energy trade beyond existing markets.

Nepal could export surplus hydropower to Sri Lanka through a proposed submarine electricity transmission link between India and Sri Lanka.

The prospect was discussed during the 19th Power Secretaries' Roundtable (PSRT19) held in Mumbai, India, on October 9-10. According to the Ministry of Energy, Water Resources and Irrigation (MoEWRI), energy officials and experts from across South Asia deliberated on a potential roadmap for transmitting Nepal's electricity to Sri Lanka via India's power grid.

Addressing a session on regional integration and grid interconnection, Sunil Paudel, joint secretary at the MoEWRI, highlighted opportunities to expand regional electricity trade through interconnected power networks.

"We have already completed the grid code harmonization process between Nepal and India. An ambitious plan is now being pursued to establish a submarine electricity transmission link between India and Sri Lanka," Paudel said.

He said preparations are also underway to harmonize grid codes between India and Sri Lanka. Once the two countries establish an interconnection, Nepal's surplus electricity could potentially be supplied to the Sri Lankan market through India.

Nepal's delegation to the roundtable was led by MoEWRI Secretary Jagadishwar Karmacharya and Joint Secretary Paudel. Nepal Electricity Authority Executive Director Dirghayu Kumar Shrestha and Director Tharka Bahadur Thapa also participated in the meeting.

Participants stressed the need for enhanced regional energy cooperation and drew lessons from electricity market integration efforts in Southeast Asia. Established in 2014, the roundtable serves as a platform for South Asian energy officials to discuss regional connectivity and cross-border power trade.

The meeting also reviewed winter energy challenges facing Nepal and India. Officials noted that hydropower generation in the region could be affected by weather-related factors, including the potential impact of a Super El Nino.

Nepal shared measures being adopted to address winter electricity shortages and manage peak demand. Officials said floods and landslides have damaged several hydropower projects and associated infrastructure. Preparations are underway to connect the Liping Khola hydropower project and other private-sector projects to the national grid by mid-November.

The additional supply is expected to help offset an estimated winter electricity shortfall of 70-75 MW in the Kathmandu Valley. Peak demand will be managed through the peaking capacity of the Upper Tamakoshi Hydropower Project, the Kulekhani reservoir-based plants and electricity imports from India.

Nepal's cross-border electricity transmission capacity with India has reached 1,650 MW. New transmission lines, including Chameliya-Jauljibi, Inaruwa-Purnia and Dododhara-Bareilly, are under development and are expected to further expand electricity trade between the two countries.

The roundtable also discussed the existing 500 MW trilateral electricity trade arrangement involving Nepal, India and Bangladesh. Bangladesh has expressed interest in supplying solar power to Nepal during the winter season and importing Nepal's hydropower during the monsoon.

Climate-related disasters, including floods, landslides and glacial lake outburst floods, also featured prominently in the discussions. Nepal highlighted Prime Minister Balen Shah’s proposal at the United Nations General Assembly for a trilateral cooperation mechanism involving Nepal, China and India, alongside the establishment of a regional early warning system.

The discussions underscored the growing importance of regional cooperation in strengthening energy security, improving power system resilience and expanding electricity markets across South Asia.