Patanjali Civil Services Academy

India–Nepal Electricity Cooperation [Prelims Bits]

Tags: Prelims Current events of national and international importance

Source: The Indian Express

India approved electricity exports to Nepal for 18 hours/day, from September 13–December 31, 2026, after floods damaged Nepal's hydropower infrastructure.
Export limit: 654 MW.

Power Transmission

Muzaffarpur–Dhalkebar: up to 600 MW, through 400 kV double-circuit line.
Tanakpur–Mahendranagar: up to 54 MW, through 132 kV single-circuit line.
Quantum for January 2027 onward to be reviewed in December 2026.

Why Nepal Needs Power

Flash floods damaged 13 hydropower plants, including under-construction projects, and a solar plant.
Nepal's domestic generation capacity reportedly declined by around 550 MW.
Cross-border power exports from Nepal to India fell by nearly 400 MW from previous peak levels of 900–1,000 MW.

India’s Power Situation

Nepal will receive power mainly during solar-generation hours (midnight–6 pm) when India has relatively greater daytime availability.
India's daytime solar surplus has sometimes required curtailment because the grid cannot absorb all available generation.
India faces tighter supply during evening/night, when solar generation declines.
Peak demand, September 10, 2026: ~269 GW, highest ever for September.
Gas-based generation rose 80.32% during September 1–9, while coal-based generation rose 25.30% year-on-year.

India–Nepal Electricity Trade

Trade is seasonal:
- Monsoon: Nepal generally has surplus hydropower and exports electricity to India.
- Dry/winter season: Nepal's hydropower generation declines and it imports electricity from India.
Normally, Nepal seeks Indian power imports around October; the 2026 request came earlier due to flood damage.

Q1. Consider the following statements regarding the 2026 India–Nepal electricity arrangement:

The additional electricity supply to Nepal was facilitated primarily because Nepal's hydropower generation had been affected by flood damage.
The approved arrangement allows Nepal to receive up to 654 MW through two transmission links.
The arrangement represents a permanent shift in Nepal's electricity trade from seasonal bilateral trade to year-round dependence on Indian electricity.

Which of the statements given above are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (a) 1 and 2 only

Explanation:

Statement 1 is correct: Floods damaged multiple hydropower projects and reduced Nepal's domestic generation capacity, prompting the early request for Indian power.
Statement 2 is correct: The approved export limit is 654 MW—600 MW through Muzaffarpur–Dhalkebar and 54 MW through Tanakpur–Mahendranagar.
Statement 3 is incorrect: The arrangement is temporary, covering September 13 to December 31, 2026, while India–Nepal electricity trade remains fundamentally seasonal.