Floods disrupt Nepal's electricity exports to Bangladesh
Nepal is seeking India’s approval to reroute power from other projects to Bangladesh after flood damage halted supplies.
Nepal's electricity exports have dropped sharply following devastating floods in the Bhotekoshi river system, with power supplies to Bangladesh effectively coming to a halt, reports The Kathmandu Post.
Nepal typically exports around 1,000 megawatts of electricity during the wet season. But following the 26 August floods, exports have fallen to about 650 MW as several hydropower plants have been forced to shut down or operate at reduced capacity.
Bangladesh has been among the hardest hit as it had only recently started receiving electricity from Nepal through India's power grid.
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Two hydropower plants authorised to supply electricity to Bangladesh — the 22.1 MW Chilime Hydropower Project and the 24 MW Trishuli Hydropower Project — have suffered flood damage and remained out of operation since last week.
Chilime was authorised to sell 21.4 MW to India, while Trishuli was approved to export 18.6 MW. Both plants were also cleared to supply electricity to Bangladesh through India. Nepal receives payment in US dollars for power sold to Bangladesh.
"Both projects supplying electricity to Bangladesh have been damaged, so we have asked India to allow electricity from another project to be sent as an alternative," said Dirghayu Kumar Shrestha, acting managing director of the Nepal Electricity Authority (NEA).
"At present, electricity exports to Bangladesh are effectively at zero," he said.
The floods have affected Nepal's power generation more broadly, with generation halted at 12 hydropower projects since the disaster.
The NEA has placed the Sanjen, Upper Sanjen and Salasungi projects in "isolated mode" after their transmission lines were damaged. Under this arrangement, the plants operate outside the national grid and generate electricity only for nearby areas.
Export approvals add to Nepal's power-trade problems
The decline in exports is not entirely attributable to the floods.
Nepal is also unable to export 73.75 MW from three hydropower projects to India because their export approvals have not been renewed.
The approval for the 38.8 MW Upper Chameliya Hydropower Project expired on 31 June, while those for the 24.25 MW Seti River and 10.70 MW Upper Tadi Khola projects expired on 31 July.
Until the approvals are renewed, the NEA cannot sell their combined 73.75 MW to India. Such approvals have to be renewed annually.
The situation highlights the challenges Nepal faces as it seeks to become a regional electricity exporter after years of depending on imports, particularly during the dry winter months.
India has so far authorised Nepal to export electricity generated by 37 hydropower projects with a combined capacity of around 1,200 MW. Chilime and Trishuli are among those projects.
Bangladesh power deal faces additional hurdles
Nepal's electricity trade with Bangladesh is subject to further constraints because the power must pass through India.
At a Nepal-Bangladesh energy secretary-level Joint Steering Committee meeting in Dhaka in November 2025, the two countries agreed to increase Nepal's electricity exports to Bangladesh by another 20 MW under their existing 40 MW arrangement.
They also agreed to initiate the necessary procedures. India, however, later said the additional 20 MW could not be exported because of insufficient transmission capacity.
Nepal again sought India's approval for the additional 20 MW at a Nepal-India energy secretary-level Joint Steering Committee meeting in June.
The NEA has also requested permission to export electricity from other projects, including the 456 MW Upper Tamakoshi Hydropower Project.
However, India has not approved electricity exports from projects involving Chinese investment, Chinese contractors or, in some cases, Chinese equipment.
During the monsoon, abundant water enables hydropower plants to generate surplus electricity for export. In the dry season, declining river flows combined with strong domestic demand force Nepal to import electricity from India.
The Bhotekoshi floods have disrupted this model just as Nepal would normally be maximising its electricity exports and earnings.
The NEA is now working to restore damaged generation and transmission infrastructure while seeking Indian approval to redirect electricity from other operational projects to Bangladesh.
