September 3, 2026: Nepal has completely halted electricity exports to Bangladesh after severe flash floods damaged several hydropower plants, disrupting the country’s ability to supply power through the regional grid.
The disruption is particularly linked to damage caused by recent flooding in the Bhotekoshi river system, according to a report published by The Kathmandu Post.
Nepal typically exports around 1,000 megawatts of electricity during the monsoon season. Following the floods, however, the country’s total electricity exports have fallen to around 650 megawatts.
Dighayu Kumar Shrestha, acting managing director of the Nepal Electricity Authority, said the August 26 floods damaged the 22.1-megawatt Chilime Hydropower Project and the 24-megawatt Trishuli Hydropower Project, both of which had been authorised to supply electricity to Bangladesh.
As a result, Nepal’s electricity exports to Bangladesh have effectively fallen to zero.
As an alternative, Nepal has sought India’s permission to transmit electricity generated by other hydropower plants to Bangladesh, Shrestha said.
The electricity export arrangement from Nepal to Bangladesh through India’s transmission network was launched recently, allowing Nepal to earn revenue in U.S. dollars. However, the latest floods have disrupted operations at at least 12 hydropower plants across Nepal.
The Sanjhen, Upper Sanjhen and Salasungi hydropower projects have also been disconnected from the national grid and are currently supplying electricity locally.
Nepal is facing another setback as it remains unable to export an additional 73.75 megawatts because India has not renewed export approvals for several projects.
The export authorisations for the Upper Chameliya, Seti River and Upper Tadi Khola hydropower projects have expired, but India’s Central Electricity Authority has yet to renew them.
Meanwhile, Bangladesh and Nepal had agreed in a meeting held in Dhaka in November 2025 to increase Nepal’s electricity supply to Bangladesh by another 20 megawatts. However, India did not approve the proposal because of limitations in transmission capacity.
India has also reportedly raised objections to purchasing electricity from hydropower projects involving Chinese investment, contractors or equipment. One of the major projects affected by this issue is the 456-megawatt Upper Tamakoshi Hydropower Project.
Former Nepali energy minister Kulman Ghising said Kathmandu needs to intensify bilateral discussions at the diplomatic level to secure electricity export approvals and renew existing authorisations.
Despite the current disruption, Nepal has emerged as an increasingly important power exporter in the region. During the 2025–26 fiscal year, the country exported electricity worth 29.32 billion Nepali rupees to India and Bangladesh.
Even after importing electricity during the dry season, Nepal recorded a power-trade surplus of 19.09 billion rupees during the same period.
The latest floods, however, have exposed the vulnerability of Nepal’s hydropower infrastructure to extreme weather events while also highlighting the importance of cross-border transmission arrangements for the country’s growing electricity-export ambitions.
Source: The Kathmandu Post