Nepal has resumed exporting electricity to India following a rise in river water levels triggered by recent rainfall, which has boosted the output of hydropower projects.

The Nepal Electricity Authority (NEA) began exporting surplus electricity to India from Saturday midnight, as production exceeded domestic consumption, according to NEA Executive Director Hitendra Dev Shakya.

Shakya said Nepal is exporting electricity to India's Energy Exchange Market during the morning and nighttime hours, when domestic demand is relatively low. However, electricity imports from India have continued during the daytime to meet peak demand.

"Since consumption drops during the night and morning, we are exporting electricity at those times. But as daytime consumption remains high, imports are still necessary," he said. He added that if production continues to rise, imports may be halted entirely, allowing for uninterrupted exports.

Currently, domestic electricity generation has reached around 1,500 megawatts, while peak demand in the evening climbs to approximately 2,000 megawatts. On Saturday night, Nepal exported 200 MW of electricity to India, followed by 150 MW on Sunday and 170 MW on Monday, according to the NEA.

Although the monsoon has yet to officially begin, rainfall across the country has increased due to the influence of westerly and local wind systems, as well as moisture-laden air from the Bay of Bengal and the Arabian Sea. This has increased river flows and enabled greater hydropower generation, the NEA said.

Nepal first entered the day-ahead market of India's Energy Exchange on May 1, 2021. While initially permitted only to import power, Nepal began exporting electricity on November 3, 2021. Since then, the country has been participating in India’s medium-term, day-ahead, and real-time electricity markets.

Meanwhile, under a tripartite agreement signed on October 4, 2023, Nepal plans to export 40 MW of electricity daily to Bangladesh starting June 15. However, NEA officials say the plan faces uncertainty due to the recent worsening of ties between India and Bangladesh, which may impact transmission arrangements.

Despite this, NEA spokesperson Rajabhai Shilpakar said preparations are underway to begin exports to Bangladesh as agreed, following the onset of the monsoon and further increase in electricity production.