Hydropower capacity hit, Nepal seeks advance power imports from India, Pg9

Key Highlights:

• Nepal has requested advance electricity imports from India starting September to mitigate a generation shortfall.
• This request follows recent flash floods on August 26, 2026, which severely damaged Nepal's hydropower facilities.
• Nepal's domestic power generation capacity has fallen by approximately 550 MW.
• India's cross-border power flow from Nepal has consequently reduced by about 400 MW from previous peak export levels.
• India is processing the request under an existing framework, assuring sufficient reserve capacity to meet its own domestic demand.

Detailed Insights:

• The flash floods, triggered by an ice-rock avalanche or glacier collapse, affected districts like Rasuwa, Nuwakot, and Dhading, damaging several hydropower projects including Chilime and Trishuli 3A.
• The total damage to hydropower and solar projects from the disaster is estimated at 748 MW.
• Electricity trade between Nepal and India is seasonal, with Nepal typically exporting surplus power during monsoon and importing during dry winter months.
• Nepal usually requests imports around October, but the recent disaster prompted an earlier request this year.
• The cross-border power trade is governed by agreements such as the Power Trade Agreement (PTA) signed in 2014 and a long-term deal from January 2024.
• Indian officials have stated that the reduction in imports from Nepal is temporary and will not impact India's grid stability or domestic electricity supply.

Key Concepts Involved:

• Hydropower: Electricity generated by harnessing the energy of flowing or falling water.
• Cross-border power trade: The exchange of electricity between two or more countries, often governed by bilateral agreements.
• Power Trade Agreement (PTA): A formal agreement between countries to facilitate the exchange and trade of electricity.