In 2022, Nepal's electricity consumption shows a strong reliance on hydropower, with about 10.6 TWh of low-carbon energy produced, almost entirely from hydropower sources. This significant dependence on hydroelectric power means that more than half of the country's electricity is generated sustainably, contributing positively to the fight against climate change and air pollution. However, the total electricity consumption per person in Nepal amounts to about 377 kWh, which is quite low compared to the global average of 3,794 kWh/person. Such low levels of electricity generation can limit opportunities for economic development and the adoption of modern technologies, possibly affecting the overall quality of life and economic opportunities for Nepali citizens.

Is Electricity Growing in Nepal?

Electricity generation in Nepal has indeed experienced growth, though modest. Between 2021 and 2022, the electricity consumption per person increased by 14 kWh, raising the total to 377 kWh/person. More encouragingly, low-carbon electricity witnessed a growth of 33 kWh/person within the same timeframe, now at 360 kWh/person. This increase reflects Nepal's commitment to expanding sustainable energy sources, though it's important to note the overall growth in electricity consumption is still slow and could benefit from further acceleration to meet rising demands from electrification and technological advancements like AI.

Suggestions

To enhance low-carbon electricity generation, Nepal can learn from regions that have successfully integrated diverse energy sources. For instance, China's significant advancements in solar energy, generating 1,266 TWh, exemplify the scope of solar electricity even in populous settings. Similarly, the U.S., with large-scale nuclear production, highlights the viability of nuclear power, producing 792 TWh. By looking towards countries with established solar and nuclear capabilities such as India, Japan, or even regions like Illinois in the U.S., Nepal can further diversify its energy mix. This would involve scaling up investments in solar infrastructure and considering nuclear options, providing a reliable and clean energy backbone to meet future electricity needs sustainably.

History

Looking back at the historical trends of low-carbon electricity generation in Nepal, there has been consistent incremental growth, largely driven by hydroelectric projects. Starting from the 1990s, there were steady, albeit small, annual increments except for minor declines in a couple of years like 1997 and 2015. A significant boost occurred between 2016 and 2022, with 2021 being a standout year, adding about 3.4 TWh to its hydroelectric generation. The data reflects a positive trajectory of electricity generation, with notable acceleration in recent years, indicating Nepal's dedication to leveraging its hydroelectric potential. The focus should now broaden to include diverse clean energy technologies to sustain and speed up this progress.

Electricity Imports and Exports

Balance of Trade