The Nepal government has sought advance approvals to import electricity from India starting in September to address a generation shortfall caused by recent floods. This request comes earlier than usual, as electricity trade between Nepal and India is typically seasonal, with Nepal exporting surplus power during the monsoon and importing electricity during the dry winter months.
Context
Normally, Nepal makes such requests for electricity imports from India around October. However, the recent flash floods have significantly damaged the country’s power generation capacity, prompting the government to act sooner this year. According to Indian government officials, the request is being processed under an existing framework for cross-border power supply arrangements.
Developments
Indian authorities are working to facilitate the additional electricity required by Nepal. Assessments indicate that Nepal’s domestic power generation capacity has fallen by approximately 550 megawatts (MW) due to damage to hydropower facilities. Consequently, cross-border power flow to India has decreased by around 400 MW from previous peak export levels of 900-1,000 MW.
Despite this reduction, officials have stated that the shortfall is temporary and does not necessitate any exceptional emergency procurement or alternative arrangements to meet India’s domestic demand. India has sufficient reserve capacity to manage the reduction in imports from Nepal without affecting grid stability or domestic electricity supply.
