Kathmandu, Nepal – Nepal is set to significantly increase its electricity imports from India, planning to procure up to 1,100 megawatts (MW) during the upcoming dry season, spanning from December to May 2027. The move comes as recent devastating floods and heavy monsoon rains have severely damaged the nation's critical hydropower infrastructure, causing a substantial loss in domestic generation capacity.
Hydropower Projects Hit by Natural Disasters
According to the Nepal Electricity Authority (NEA), approximately 640 MW of Nepal's total 3,740 MW operating generation capacity has been knocked offline. Flash floods on August 26 impacted several hydropower plants and associated infrastructure around Bhotekoshi, accounting for about 450 MW of the lost capacity. Further exacerbating the situation, the 190 MW Kaligandaki hydropower project suffered damage between September 24 and 27 due to heavy monsoon downpours.
Addressing the Dry Season Demand Gap
The planned imports are crucial for Nepal to bridge the anticipated gap between domestic supply and demand, particularly during the dry months when its run-of-the-river projects naturally generate less electricity. NEA spokesperson Rajan Dhakal highlighted that while some imports will be needed after November, the peak demand period is expected between February and May.
Seasonal Energy Dynamics and India's Role
Nepal's reliance on hydropower means its energy landscape is highly seasonal. During the monsoon season, when rivers are full, the country often generates a surplus and exports electricity to India. Currently, Nepal is exporting between 600 MW and 700 MW to its southern neighbor. However, as river levels fall in the dry season, Nepal reverses this flow, turning to imports to meet its domestic needs.
India has progressively expanded access to its electricity market for Nepal, facilitating cross-border energy trade. This expanded access has allowed Kathmandu to sell its surplus hydropower, a crucial revenue stream, and now enables it to secure vital imports during times of scarcity.
Outlook on Restoration and Future Supply
The NEA anticipates that some of the damaged plants will be restored following repairs. Approximately 160 MW of capacity from the Bhotekoshi-affected projects could be back online by February, with the 190 MW Kaligandaki project also expected to resume generation within a couple of months. These restorations could alleviate some pressure on Nepal's power supply as seasonal demand reaches its peak.