Nepal's Transformation into an Electricity Exporter

Nepal has transitioned from relying on India for electricity to becoming a significant electricity exporter with the ability to supply 941 MW, thanks to a strategic overhaul in its hydropower sector. The framework for this shift began with a power trading agreement signed in 2014, allowing Nepal to sell surplus energy through platforms like the Indian Energy Exchange. By investing heavily in hydropower infrastructure and attracting nearly $2 billion in foreign investments, Nepal has harnessed its extensive river systems, particularly during the monsoon season, to maximize electricity generation. The launch of the Upper Tamakoshi Hydropower Project in 2021 was a pivotal moment, drastically increasing Nepal's capacity and leading to a remarkable growth in exports from just 39 MW to nearly 1000 MW in just three years.