NEA spends Rs 67.68 billion on electricity from private producers in a year

Kathmandu / Aug 18: The Nepal Electricity Authority (NEA) spent Rs 67.68 billion to purchase electricity from private-sector power producers in the Fiscal Year (FY) 2025/26, accounting for nearly 58 percent of its total electricity procurement expenses.

According to the NEA’s annual report, the public enterprise spent Rs 117.38 billion on electricity purchase from private producers, its subsidiary companies and India during the review year. Of this amount, Rs 67.68 billion went to private-sector power producers, Rs 17.86 billion to NEA subsidiary companies and Rs 10.56 billion for electricity imported from India.

The NEA purchases electricity from domestic hydropower projects to meet the country’s electricity demand and exports surplus power to India. It also imports electricity from India when domestic generation is insufficient.

During FY 2025/26, the NEA generated 2,803 GWh of electricity from its own power plants. It purchased 3,826 GWh from its subsidiary companies and 10,825 GWh from private-sector producers, while importing 1,171 GWh from India. Electricity purchased from private producers made up the largest share of the authority’s total power procurement.

Meanwhile, the NEA generated Rs 148.62 billion in revenue from electricity sales during the year, marking a significant increase from the previous fiscal year. Domestic electricity sales contributed Rs 119.31 billion, while electricity exports to India generated Rs 29.31 billion.