Nepal Renews Electricity Import Agreement with India, Secures Import of 554 Megawatts

In a crucial move to address the pressing issue of electricity scarcity during the dry season, Nepal has renewed its electricity import agreement with India, securing the import of 554 megawatts. The renewal comes as a relief for Nepal, which faces a decline in domestic hydroelectric production during this period.

Chandan Kumar Ghosh, spokesperson for the Nepal Electricity Authority, confirmed the renewal of the contract for a duration of three months. This agreement, typically renewed annually, has been extended for a shorter period this time, reflecting the urgency to meet Nepal’s immediate energy needs.

Effective from the second week of Ashadh, Nepal has resumed importing electricity from India under the renewed terms. The Ministry of Energy, Water Resources, and Irrigation disclosed that Nepal now has the capacity to import 554 megawatts of electricity from India, ensuring a sustained flow of power into the country.

The power trade agreement between Nepal and India, initially signed in 2078 BS, laid the foundation for the exchange of electricity between the two nations. This recent renewal reinforces the bilateral cooperation in the energy sector, emphasizing the mutual benefits derived from the cross-border electricity trade.

With Nepal’s reliance on hydroelectricity, the dry season poses significant challenges due to reduced water flow in rivers, impacting domestic power generation. Thus, the timely renewal of the electricity import agreement with India provides a vital lifeline for Nepal’s energy security during this period of heightened demand.