India Approves Up To 654 MW Additional Electricity Supply To Nepal For Winter

India has approved the supply of up to 654 megawatts of additional electricity to Nepal for 18 hours a day until the end of December, providing Nepal with additional power support as the country prepares for lower domestic electricity production during the winter.

The approval comes after the devastating Bhotekoshi floods of August 26 damaged several hydropower projects and transmission infrastructure, reducing Nepal’s electricity generation capacity. The damage has created an estimated power shortage of around 350 MW to 400 MW.

According to India’s Ministry of Power, electricity can be supplied to the Nepal Electricity Authority for 18 hours each day, from midnight until 6 pm. The approval is effective from September 13 through December 31, 2026.

Up To 654 MW Approved Through Two Transmission Lines

Of the total approved capacity, up to 600 MW can be supplied through the Muzaffarpur Dhalkebar 400 kV double circuit transmission line.

Another 54 MW can be supplied through the Tanakpur Mahendranagar 132 kV single circuit transmission line.

This means Nepal has approval to import up to 654 MW during the permitted hours. However, the figure represents the maximum approved capacity and does not necessarily mean Nepal will purchase the full amount every hour.

The amount of electricity Nepal actually imports will depend on domestic production, demand and other conditions in the power system.

India is expected to review the amount of electricity that can be supplied from January 2027 in December this year.

Floods Created Major Power Shortage

The additional electricity has become particularly important following severe damage caused by the August 26 Bhotekoshi floods.

Twelve operational power projects with a combined generation capacity of more than 400 MW were affected.

At least six projects, including Trishuli 3A, Devighat, Middle Trishuli Ganga and the Nuwakot Solar Electricity Project, were completely damaged, according to the Independent Power Producers’ Association Nepal.

Upper Trishuli 1, Rasuwagadhi, Rasuwa Bhotekoshi, Langtang Khola, Chilime and Maillung Khola were among the projects that suffered partial damage.

The floods also damaged transmission lines, access roads and other important infrastructure needed to operate and repair the projects.

The disaster caused an estimated Rs 134.69 billion in damage to Nepal’s energy sector, according to the government’s Rapid Damage and Needs Assessment. The government estimates that restoring energy and power grid systems will require around Rs 390.62 billion.

It remains unclear how quickly all the damaged power projects will return to operation.

Nepal Could Face Winter Electricity Shortage

Nepal produces most of its electricity from hydropower. Generation is normally higher during the rainy season because rivers carry more water.

Production drops during the dry winter months as river levels fall. Nepal therefore regularly imports electricity from India during winter to meet domestic demand.

This year, the damage caused by the floods has increased concerns about the winter supply.

Dirghayu Kumar Shrestha, acting managing director of the Nepal Electricity Authority, said Nepal had requested additional electricity from India to meet expected demand during the dry season.

India subsequently approved the request.

The additional supply could help Nepal manage peak electricity demand while damaged hydropower plants are repaired and domestic generation falls during winter.

Nepal Is Still Exporting Electricity To India

Despite preparing to import more electricity during winter, Nepal is currently exporting power to India.

Nepal was exporting around 500 MW to the Indian electricity market as of the latest update because the rainy season was still continuing and domestic hydropower production remained relatively high.

The situation highlights Nepal’s seasonal electricity cycle. The country can have surplus electricity during periods of high river flow but face shortages when water levels fall during winter.

The newly approved imports are therefore intended mainly for the coming dry season rather than Nepal’s current electricity needs.

Nepal And India Expanding Electricity Trade

The latest decision is also part of growing electricity cooperation between Nepal and India.

At the 13th Nepal India Energy Secretary level Joint Steering Committee meeting in July, India agreed to allow Nepal to export up to 1,650 MW of electricity to the Indian market.

The two countries had earlier signed a long term power trade agreement in January 2024 with a target of enabling Nepal to export up to 10,000 MW of electricity to India over a decade.

Several cross border transmission lines are also being developed to increase the amount of electricity that can move between the two countries.

For Nepal, the latest approval provides an important backup option as it enters a difficult winter following major damage to its hydropower infrastructure.

If damaged projects cannot return to production quickly, electricity imported from India could play a major role in reducing the gap between domestic production and demand through the end of the year.