Kathmandu Eyes Regional Energy Market as Dams Produce Excess Power

Nepal is generating more hydropower than its domestic demand during the monsoon season, leading it to ramp up cross-border energy sales. According to the Nepal Electricity Authority (NEA), over 500 MW is being exported to India, and talks are underway with Bangladesh for seasonal supply.

With 6,000 rivers crisscrossing the country, Nepal has untapped capacity exceeding 40,000 MW. A trilateral cooperation model between India, Nepal, and Bangladesh is now being considered, which could set a benchmark for South Asian energy security.

Indian northeastern states and Bangladesh’s northern grid areas are expected to benefit directly, making this a cross-border initiative with long-term strategic value.