Electricity in Nepal in 2022

As of 2022, electricity consumption in Nepal predominantly comes from low-carbon sources, primarily hydropower. Nepal generated approximately 10.7 TWh of low-carbon electricity, with hydropower accounting for almost all of it, at about 10.59 TWh. This indicates that Nepal has committed to utilizing clean energy sources, with close to none of its electricity coming from fossil fuels. However, given its population size and energy demand, the country's total electricity consumption is notably lower than the global average, which stands at 3813 watts per person. Such low levels of electricity generation can stifle economic growth, reduce the quality of life, and limit industrial development in Nepal. The deficiency in electricity generation means that many residents might face limited access to reliable power, affecting essential services and daily activities.

Suggestions

To increase its low-carbon electricity generation, Nepal can look towards expanding its energy portfolio by incorporating more wind and solar power. Countries like India and Brazil, which have similarities with Nepal in terms of developmental challenges, have successfully leveraged significant solar and wind capacities, generating 134 TWh and 108 TWh from these sources, respectively. Learning from these nations, Nepal can create favorable policies and investment incentives to attract technology and investments in solar and wind installations. By drawing from the experiences of countries with considerable advancements in clean energy, Nepal can accelerate the growth of its low-carbon electricity sector, diversify its energy mix, and reduce reliance on a single source of power.

History

The journey of low-carbon electricity in Nepal over the past decades shows a steady increase in hydropower generation. In the 1990s, hydropower generation saw modest growth with a few fluctuations, adding around 0.2 to 0.4 TWh every few years. The trend continued into the early 2000s, where small yet consistent increments were made almost annually. A notable dip occurred in 2015, followed by a significant rebound in subsequent years. The most remarkable growth appears to have happened from 2019 onwards, with a historic leap of 3.4 TWh in 2021 and an additional increase of 1.1 TWh in 2022. This historical trajectory highlights Nepal's ongoing progress in enhancing its low-carbon electricity capacity, laying a foundation for potential future diversification with wind and solar investments.

Electricity Imports and Exports

Balance of Trade

Data Sources