In 2022, Nepal consumed about 377 kWh of electricity per person—only one-tenth of the global average of 3,794 kWh. Domestic low-carbon electricity generation totaled about 10.7 TWh, almost entirely hydropower, which supplied roughly 10.6 TWh. This establishes hydropower as the backbone of Nepal’s clean electricity production, although the supplied figures do not separately identify fossil-fuel electricity or the sources of imported electricity. Such low electricity consumption can constrain industrial development, healthcare, education and household living standards. Expanding clean generation and reliable electricity access would help Nepal electrify transport and cooking while supporting emerging demand, including digital services and AI.

Is Electricity Growing in Nepal?

Electricity consumption is growing in Nepal, with the 2022 figure setting a new per-person record. Consumption rose from about 362 kWh per person in 2021 to 377 kWh in 2022—an increase of roughly 4%. The supplied record comparison puts the gain at about 14 kWh per person, with rounding accounting for the small difference between the displayed figures. Low-carbon electricity generation grew faster, reaching 360 kWh per person compared with the previous record of 327 kWh in 2021, an increase of 33 kWh, or about 10%. These are encouraging gains, but sustained growth is essential to narrow Nepal’s large electricity gap with the global average.

Suggestions

Nepal can build on its hydropower foundation while accelerating solar deployment and exploring nuclear electricity as a longer-term source of dependable low-carbon supply. Nearby India offers especially relevant examples, generating about 205 TWh from solar, 125 TWh from wind and 54 TWh from nuclear in the supplied comparison. Pakistan also demonstrates regional experience with solar and nuclear, producing about 41 TWh and 22 TWh respectively. Nepal could learn from these neighbors’ project development, workforce training and grid integration, applying those lessons at a scale suited to its electricity system. Rooftop and larger solar installations could complement hydropower, while wind projects could be developed where local measurements support them. Nuclear cooperation and feasibility studies could help Nepal assess future opportunities for a more diverse clean electricity supply.

History

Nepal’s low-carbon electricity history is largely a story of hydropower expansion, initially gradual and more recently much stronger. During the 1990s, the listed annual additions ranged from about 0.2 to 0.4 TWh, interrupted by a small decline in 1997. The 2000s brought repeated modest increases of around 0.1–0.3 TWh, followed by further gains in 2011 and 2014. A disappointing 0.3 TWh decline in 2015 was followed by a strong rebound of 0.8 TWh in 2016 and continued growth through 2018. Expansion then accelerated: hydropower increased by 1.2 TWh in 2019, surged by 3.4 TWh in 2021 and added another 1.1 TWh in 2022. These larger recent additions mark welcome progress toward a more abundant clean electricity supply.

Electricity Imports and Exports

Balance of Trade