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Economy & Business25 Oct 2026 · about 6 min

Nepal resumes power exports to Bangladesh after flood disruption

The brief

Nepal resumed sending 40 megawatts of electricity to Bangladesh after flood damage had interrupted the supply. The restart matters because it restores a regional power trade arrangement and gives Nepal another outlet for surplus electricity produced during the monsoon. The electricity travels through India’s transmission network rather than directly between Nepal and Bangladesh. The article identifies India’s network as the route for the Bangladesh exports and says India’s Central Electricity Authority approved the revised generating plants. This approval allowed Nepal to use replacement sources. The approved replacements were Solu Khola and Kabeli B1. Nepal’s five-year agreement with Bangladesh provides 40 megawatts each year from June 15 to November 15. Renewed exports help Nepal manage monsoon surpluses and support wider regional electricity trade, even as floods have damaged plants and transmission infrastructure.

01

What electricity export did Nepal resume, who is receiving it, and why does the power travel through India’s transmission network?

Nepal resumed sending 40 megawatts of electricity to Bangladesh after flood damage had interrupted the supply. The restart matters because it restores a regional power trade arrangement and gives Nepal another outlet for surplus electricity produced during the monsoon.

The electricity travels through India’s transmission network rather than directly between Nepal and Bangladesh. The article identifies India’s network as the route for the Bangladesh exports and says India’s Central Electricity Authority approved the revised generating plants. This approval allowed Nepal to use replacement sources.

The approved replacements were Solu Khola and Kabeli B1. Nepal’s five-year agreement with Bangladesh provides 40 megawatts each year from June 15 to November 15. Renewed exports help Nepal manage monsoon surpluses and support wider regional electricity trade, even as floods have damaged plants and transmission infrastructure.

02

Why had the electricity supply been interrupted, and which hydropower plants were approved to replace the flood-damaged Trishuli and Chilime plants?

The electricity supply stopped because the August 26 Bhotekoshi flood damaged the Trishuli and Chilime hydropower plants. Both plants had been approved to supply Bangladesh, so their damage disrupted Nepal’s scheduled exports. The disaster also partly affected electricity sales to Haryana under separate bilateral agreements.

Nepal then sought approval to use different generating plants. India’s Central Electricity Authority approved electricity from Solu Khola and Kabeli B1 for Bangladesh. These plants replaced the previous designations for Trishuli and Chilime. The revised approvals allowed exports to restart through India’s transmission network.

The change shows that cross-border electricity sales depend on both available generation and regulatory approval. Lower Modi Khola was separately cleared to supply Haryana. Devighat was also among the previous designations replaced by the new approvals, according to the article’s description of the revised arrangement.

03

How much electricity is 40 megawatts, and how significant is that amount for Nepal’s electricity exports?

A megawatt measures the rate at which electricity can be produced or delivered. Therefore, 40 megawatts describes the power flowing to Bangladesh at a given moment under Nepal’s seasonal agreement. The actual amount of energy depends on how long that rate is maintained.

For scale, maintaining 40 megawatts for one hour would deliver 40 megawatt-hours of energy. Maintaining it for 24 hours would deliver 960 megawatt-hours. These examples explain the unit, but the article does not state how continuously the full 40 megawatts flows each day.

The figure is significant because it is the full annual Bangladesh export commitment identified in the five-year agreement. It also represents a dependable regional outlet for Nepal’s monsoon surplus. However, the article does not provide a percentage comparing 40 megawatts with Nepal’s total exports or generation.

04

Why was approval from India’s Central Electricity Authority necessary for Nepal to sell electricity to Bangladesh?

Nepal’s electricity was not simply sent from its plants to Bangladesh independently. It moved through India’s transmission network, so the relevant Indian authority had to approve the generating sources connected with that cross-border transaction. The Central Electricity Authority’s decision made the revised supply arrangement valid.

After the flood, the authority approved Solu Khola and Kabeli B1 for Bangladesh. It also cleared Lower Modi Khola to supply Haryana. These approvals replaced the earlier designations involving Trishuli, Chilime and Devighat. This was the regulatory mechanism that enabled Nepal to resume exports using undamaged or available alternatives.

The article does not describe every technical or legal requirement behind India’s approval. It does show that cross-border power trade involves more than producing electricity. Plants, transmission routes and official permissions must align before electricity can be sold to another country.

05

How does Nepal turn surplus monsoon-season hydropower into export revenue, and what are the differences between bilateral contracts and India’s day-ahead and real-time electricity markets?

Nepal first meets domestic electricity demand, then exports surplus hydropower generated during the monsoon. This turns water availability into foreign-exchange revenue instead of leaving excess generation unsold. The arrangement also connects Nepal with India’s regional electricity system.

Under medium-term bilateral agreements, Nepal supplies Haryana and Bihar from June to October each year. These contracts set named buyers and agreed sales arrangements. Remaining electricity is sold through the Indian Energy Exchange, or IEX, in day-ahead and real-time markets. Day-ahead trading schedules power before delivery, while real-time trading adjusts sales closer to actual delivery.

The article reports that about two-thirds of electricity exported to India from mid-September to mid-October was sold under bilateral agreements. The rest went through IEX. During that period, Nepal exported 633.986 million units and earned Rs5.925 billion, showing how both channels convert seasonal surplus into revenue.

06

What happens to Nepal’s electricity trade and export earnings when floods damage hydropower plants or transmission infrastructure?

Flood damage can interrupt electricity trade in two ways. It can shut hydropower plants that produce approved export power, and it can damage transmission infrastructure needed to move electricity. The result may be lower or suspended exports to particular buyers, as happened after the Bhotekoshi flood.

Trishuli and Chilime were damaged, suspending Bangladesh exports. Other plants approved for India also shut down, affecting sales. Nepal responded by securing approval for Solu Khola and Kabeli B1 for Bangladesh, while Lower Modi Khola was cleared for Haryana. These changes restored some trading capacity.

The reported outcome was mixed but financially strong. From mid-September to mid-October 2026, Nepal exported 633.986 million units to India and earned Rs5.925 billion. That was Rs962 million more than the same period last year and Rs832.5 million above the preceding month, despite the flood damage.

07

What is hydropower, and how do flowing water, generating plants, transmission lines, and electricity markets work together to deliver power across countries?

Hydropower uses flowing or falling water to turn turbines connected to generators. The generator produces electricity, and transmission lines carry that electricity over long distances. In Nepal’s case, hydropower plants produce the supply, while India’s transmission network carries some exports toward Bangladesh.

The key mechanism is coordination. Water availability supports generation, plants produce power, and transmission infrastructure moves it to another market. A contract can assign electricity to a buyer such as Bangladesh, Haryana or Bihar. If power remains available, it can instead be offered through India’s day-ahead or real-time electricity markets.

The article shows why every link matters. Floods damaged plants and transmission infrastructure, disrupting exports. India’s Central Electricity Authority then approved replacement plants, allowing trade to resume. Nepal exported after meeting domestic demand, using regional contracts and markets to sell monsoon-season surplus.

08

What does Nepal’s five-year seasonal electricity export agreement with Bangladesh mean, and how does the June 15-to-November 15 supply period work?

The agreement means Nepal and the Bangladesh Power Development Board have a planned, recurring electricity trade arrangement. Signed on October 3, 2024, it lasts five years. Nepal supplies Bangladesh with 40 megawatts each year under the agreement.

Supply is seasonal, running from June 15 to November 15. This period covers part of Nepal’s monsoon season, when hydropower generation can produce surplus electricity after domestic needs are met. The electricity travels through India’s transmission network, linking the three countries in the trade route.

The arrangement does not mean Bangladesh receives the contracted supply throughout the whole calendar year. It defines a yearly five-month window. Flood damage interrupted the arrangement when Trishuli and Chilime were affected, but India’s approval of Solu Khola and Kabeli B1 allowed Nepal to resume the 40-megawatt exports.

This brief was written by AI from the original reporting and checked by other models. Names, figures and quotes come from the source; read it for full context.

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