Current Energy Scenario of Nepal and Its Future Implication


Authors: Suman Budhathoki, Chumpol Yuangyai, Saroj Gyawali, and Kuaanan Techato
Page Range: 121-141
Published in: International Journal of Energy, Environment, and Economics, Volume 29 Issue 2
ISSN: 1054-853X

ISBN: N/A Category:

Table of Contents


In an eleven-decade-long history of electricity generation in Nepal, the installed capacity of different energy sources reached approximately 2000 MW in September 2021. Currently, around 50,000 MW energy projects mainly hydropower projects are in different stages from issued construction license to issued survey license status. Despite this huge energy potential, the per capita electricity consumption of Nepal is just below 350 kWh which is almost 10 times less than the world’s average per capita electricity consumption in 2018. The average annual electricity consumption growth increased at the rate of 10% in ten years. The residential and industrial sectors shared almost similar electricity consumption in recent years despite residential consumers being dominant in Nepal. Different studies for energy demand and consumption were carried out in Nepal. However, the projected data in previous studies were not close to real conditions. This study suggested a new approach where under-construction projects need to be analyzed with the actual physical progress of projects in a real situation while forecasting energy generation and consumption. Generally, other studies considered socio-economic and population growth parameters only.

Keywords: electricity generation, consumption, energy scenario, Nepal