India Boosts Nepal's Grid After Catastrophic Floods Cripple Hydropower

In an urgent move to help its flood-stricken neighbor, India has approved the immediate export of up to 654 megawatts (MW) of electricity to Nepal daily until December 31. This critical energy lifeline, effective from September 13, comes after devastating floods in late August wiped out a significant portion of Nepal's hydropower infrastructure, leaving thousands missing and triggering a severe power crisis just as the colder, drier season approaches. Nepal, which relies on hydropower for over 95% of its electricity, saw more than a dozen of its hydropower plants severely damaged or destroyed by the floods, triggered by a catastrophic ice-rock avalanche near the Nepal-Tibet border on August 26. The disaster caused an estimated Rs 134.69 billion (approximately $1 billion USD) in damages to the energy sector, severely cutting the country's domestic generation capacity by hundreds of megawatts and halting its usual monsoon season power exports to India. The approved supply, primarily through the critical Muzaffarpur-Dhalkebar 400 kV double-circuit line, underscores the deepening bilateral energy relations between the two nations, which have been targeting a significant increase in cross-border electricity trade. With Nepal now facing a projected winter power shortfall of 350-400 MW, India's proactive approval aims to prevent widespread outages during the upcoming dry season, a period when Nepal typically imports power due to reduced river flows. India's Ministry of Power has indicated that the quantum of power to be exported will be reviewed in December for the period starting January 2027, highlighting the temporary yet vital nature of this emergency aid. This swift response reinforces the long-term energy cooperation framework between India and Nepal, even as the Himalayan nation grapples with a massive rebuilding effort estimated to cost billions.