India’s rising power demand offers Nepal a market—but not forever
Summary
India’s surging power demand could create a major export market for Nepali electricity, but experts warn Nepal must secure long-term agreements and diversify beyond a single buyer. Rapid growth in India’s solar, nuclear and storage capacity, along with Nepal’s stalled PPAs and transmission bottlenecks, could limit Nepal’s advantage over time.
Key Points
- India’s electricity demand is projected to more than double by 2035-36, opening a potentially large market for Nepali hydropower exports.
- Energy experts say Nepal must lock in long-term power purchase agreements and diversify markets beyond India before the opportunity narrows.
- Nepal has already invested heavily in hydropower, but stalled PPAs and weak transmission infrastructure are slowing expansion and exports.
- India’s rapid shift toward solar, battery storage, pumped storage and nuclear power may reduce future reliance on Nepali surplus electricity.
