India Renewed Export Approvals for Nepali Hydropower
The decision allows Nepal to continue supplying 98 megawatts of electricity to the Indian market.
Updated on Oct. 6, 2026 in Utilities
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India has officially renewed export approvals for four Nepali hydropower projects, enabling the continued sale of 98 megawatts of electricity. These specific projects were previously pending authorization following the expiration of their annual export permits.
Why it matters
The authorization ensures stable energy trade between the two nations, supporting Nepal's ongoing electricity export goals. This regulatory process is essential for maintaining the continuous flow of power into the Indian grid.
The renewed projects include Upper Chameliya, Seti river, Upper Tadi Khola, and Upper Dordi A, which together provide 98 megawatts of capacity. Nepal currently exports an average of 600 megawatts daily to India.
The players
Nepal Electricity Authority
This government entity is responsible for the generation, transmission, and distribution of electricity across Nepal.
The details
Export approvals for these facilities require annual renewal, a process confirmed by the Nepal Electricity Authority following notifications from Indian authorities. While these four projects have been cleared for operation, recent flood damage has impacted the output of other facilities like the Trishuli, Chilime, and Devighat hydropower projects, resulting in a total capacity loss of 431.1 megawatts.
Timeline
The Upper Chameliya export approval expired in June 2026.
Seti river and Upper Tadi Khola approvals expired on July 31, 2026.
The Upper Dordi A export approval expired in August 2026.
Indian authorities informed Nepal of the renewals in September 2026.
Nepal's import permission for 654 MW expires in January 2027.
Market Landscape
This renewal follows the framework established by the Nepal-India Power Trade Agreement, which serves as the primary mechanism for regional energy integration. Strengthening this utility partnership positions Nepal to expand its energy exports to neighboring markets like Bangladesh.
These export renewals help stabilize regional energy supplies, potentially mitigating price volatility for electricity consumers. Consistent cross-border power flows support the reliability of the grid infrastructure across both nations.
The takeaway
Reliable cross-border energy trade relies heavily on the consistent renewal of complex regulatory permits. Maintaining these approvals is crucial for regional utilities to manage both supply demands and infrastructure recovery efforts.
Further reading
For more information on the evolving regional energy infrastructure, visit our Utilities section.
Source note: This article includes information reported by Kathmandupost.
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