Nepal’s Electricity Dilemma: Selling Cheap, Buying Costly
Biratnagar, February 25, 2025 – Nepal’s hydropower resources have begun to illuminate more than just homes and businesses; they now represent an increasingly valuable source of national revenue. Yet, beneath the glow of export earnings lies a growing concern: the enduring price disparity between electricity Nepal sells to India and the significantly higher rates it pays when buying power back during the dry season. This tension not only weakens short-term financial gains but also hinders the nation’s capacity to nurture a sustainable industrial landscape. In the first five months of the current fiscal year, coinciding with the monsoon months of Shrawan through Mangsir in 2081 B.S., the Nepal Electricity Authority reported the export of 1.76 billion units of surplus electricity to India. These sales generated NPR 13.04 billion in revenue, translating to an average of NPR 7.39 per unit . Yet, as the rivers wane and dry season descends, the NEA is compelled to import electricity at consid...