India will import solar energy from Nepal, which will also join the International Solar Alliance (ISA), which is led by India. This is one of the main takeaways from Nepal’s Prime Minister’s three-day visit to India. The delegation level meetings between Indian Prime Minister and Nepalese Prime Minister resulted in several major decisions, including a rise in Indian firms’ participation in Nepal-based hydropower projects from here on. The Upper Tamakoshi Hydropower Project in Nepal, with a capacity of 456 MW, became online in 2021, making Nepal an electric surplus country.

The Indian Prime Minister informed Nepal’s Prime Minister that India has approved a plan for power imports from Nepal, which would help Nepal’s economic progress. According to reports, India’s Foreign Secretary believes the two countries will work together on power harvesting, generating, transmission, and trading. He also stated that the joint vision statement on power cooperation will serve as a blueprint for future energy cooperation.

According to the International Renewable Energy Agency (IRENA), Nepal is largely reliant on renewable energy, with hydropower accounting for the majority of it. Hydropower accounts for 96 per cent of the renewable electricity produced in the country in 2020, while solar systems account for 4 per cent. By the end of 2020, it will have a solar power capacity of 60 MW, with a further 10 MW planned for that year.