Nepal’s Installed Power Capacity Reaches 4,296 MW

Nepal’s total installed electricity generation capacity has reached 4,296 megawatts (MW), according to the Ministry of Energy, Water Resources and Irrigation.

The installed capacity includes electricity generated by the Nepal Electricity Authority and private sector power producers, excluding projects currently under testing and alternative energy sources. The Ministry projected that the country’s total installed capacity would exceed 4,500 MW by the end of the current fiscal year.

The Ministry stated that hydropower projects with a combined capacity of around 3,000 MW are currently under construction, while another 3,000 MW worth of projects are in the pipeline and preparing to enter the construction phase.

Most of Nepal’s power plants are run-of-the-river projects that generate electricity at full capacity during the monsoon, enabling the country to meet domestic demand and export surplus electricity to India and Bangladesh. However, lower river flows during winter reduce generation, forcing Nepal to import electricity to meet domestic demand.

Nepal’s peak electricity demand currently stands at around 2,200 MW, which domestic production is able to meet during the dry season.

The government recently unveiled the ‘Energy Consumption and Export Strategy, 2083’, aiming to generate 24,500 MW of electricity over the next decade through investments from the government, public sector agencies, and private developers.

The new strategy marks a downward revision from the previous administration’s ‘Energy Development Roadmap 2081’, which had targeted 28,500 MW of electricity generation by 2035. The revised plan lowers the target by 4,000 MW, reflecting a more moderate approach to expanding Nepal’s energy sector by fiscal year 2035/36.

According to the Ministry, around 7,360 circuit kilometres of transmission lines of 66 kV and above have been completed so far, along with substations with a total capacity of 14,323 MVA. Likewise, around 8,225 circuit kilometres of 33 kV transmission lines and substations with a capacity of 3,308 MVA have been constructed.

The Ministry said electricity leakage across the country has been reduced to 12.5 percent due to government initiatives and a special campaign launched by the Nepal Electricity Authority. It added that technical losses would be gradually reduced further through substation expansion, transmission line upgrades, and other technical measures.

Per capita electricity consumption has reached 450 kilowatt-hours, while electricity access through the national grid and alternative energy sources has reached 99 percent of the population, the Ministry said.

Solar power generation capacity has reached 62.7 MW, while micro and small hydropower projects generate 55.3 MW of electricity.

In the irrigation sector, irrigation facilities cover 1.59 million hectares of land, according to the Ministry. Of the total irrigable land, 532,090 hectares currently have year-round irrigation facilities. – With inputs from RSS