World renewable trends and impact on Nepal

World electricity generation from renewables has grown very fast in the last decade, led by solar and wind, and this trend is clearly affecting Nepal's power sector as well. Figures are approximate, as per IRENA, IEA and NEA reports.

World trend

• Renewable share in world electricity rose from about 22% (2014) to about 30–32% (2023–24). Over 80% of new capacity each year is renewable (about 470 GW in 2023 and about 580 GW in 2024).
• Solar PV is the fastest growing (over 2,000 GW); wind is over 1,000 GW; hydro (~1,400 GW) remains the largest renewable source by energy.
• Solar cost fell about 85–90% and wind about 60–70%; batteries became cheap enough for grid storage.
• Policies: Paris Agreement, net-zero targets, COP28 pledge to triple renewables by 2030, carbon markets.
• Old coal plants are being retired in Europe and the USA; electric vehicles and heat pumps are increasing demand for clean power.

Is it impacting Nepal? Yes

1. Solar growth: Grid-connected solar farms (Nuwakot, Devighat, Bhairahawa and many IPP plants), rooftop net-metering and solar irrigation pumps have started; NEA has called PPAs for hundreds of MW of solar.
2. Hydro as clean export: India and Bangladesh need renewable power to meet climate targets, so Nepal's hydropower has a market. Nepal now exports in the wet season and has a long-term deal for 10,000 MW with India.
3. Hybrid and storage: Falling battery prices encourage solar–hydro hybrids and battery storage to balance ROR output; pumped storage is being studied.
4. Electrification policy: Following the world trend, Nepal promotes EVs (low customs duty), electric cooking and green hydrogen studies to use clean power at home.
5. Finance: Climate funds, green bonds and carbon credits (e.g. biogas and micro-hydro CDM projects) support renewable projects.
6. Off-grid: Cheap solar home systems and mini-grids (AEPC programmes) have brought power to remote villages.

Limits

Nepal's mix is already about 95% renewable (hydro), so the main effect is diversification and export rather than replacing fossil plants. Wind is still at pilot level.