---
title: "Nepalese electricity sector scenario"
subject: "Power Plant Design"
chapter: 1
key: "semester_8/power_plant_design:nepal-electricity-scenario"
source: https://www.bctengineer.com/q/semester_8/power_plant_design/nepal-electricity-scenario
site: BCT Engineering
---

# Nepalese electricity sector scenario

Power Plant Design · Chapter 1: Energy Sources and Electric Power Generation

- Asked in: 2080 Chaitra, 6 marks
- Video: [Electricity Development in Nepal: Challenges, Opportunities & History ⚡Sujan Khanal](https://www.youtube.com/watch?v=fW_3kymYUrA) — Sujan Khanal
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/power_plant_design/nepal-electricity-scenario
- Whole chapter: https://www.bctengineer.com/md/semester_8/power_plant_design/chapter-1

## Question

Present scenario of Nepalese electricity sector for this decade.

## Short answer

Nepal’s electricity sector has shifted from chronic load shedding to seasonal surplus, with over 3000 MW installed (95% ROR hydro). Peak demand exceeds 2000 MW, per-capita use ~400 kWh, and nearly full electrification. Wet-season surplus is exported to India and Bangladesh, while dry-season deficits require imports; a 400 kV grid and storage projects aim to balance annual trade and reach 28,500 MW by 2035.

## Answer

Nepal's electricity sector in this decade is moving from **chronic shortage (load shedding until 2016/17)** to **surplus in the wet season and export**, with hydropower as the backbone. The figures below are approximate, as per recent NEA annual reports and the Ministry of Energy, Water Resources and Irrigation (MoEWRI).

#### Generation
- Installed capacity has grown from about 1,100 MW (2017) to well over 3,000 MW in recent years, and keeps rising every year.
- Hydropower gives about 95% of the capacity; most of it is **run-of-river (ROR/PROR)**. Solar is growing (a few hundred MW), and there is a little thermal (diesel) kept as standby.
- Independent Power Producers (IPPs) now own more capacity than NEA itself. Big recent projects include Upper Tamakoshi (456 MW), Kulekhani III, Rasuwagadhi, Solu Dudhkoshi, Upper Trishuli 3A and many IPP plants.

#### Demand and consumption
- Peak demand has crossed about 2,000 MW, and per-capita consumption is around 400 kWh/year (still low compared to South Asia).
- About 99% of households have access to electricity.
- The government promotes electric cooking (induction stoves), electric vehicles and industrial use to absorb the surplus.

#### Seasonal mismatch
- Because most plants are ROR, Nepal has **surplus in the wet season** (Jun–Oct) and **deficit in the dry season** (Dec–Apr), when power is imported from India.
- Storage projects (e.g. Tanahu 140 MW, Budhigandaki, Dudhkoshi storage) are planned to fix this.

#### Cross-border trade
- Since 2021 Nepal exports power to India through the Indian Energy Exchange and bilateral deals, and exports to Bangladesh through the Indian grid started in 2024.
- Nepal and India signed a long-term agreement (2024) targeting export of 10,000 MW within ten years.

#### Transmission and policy
- The 400 kV backbone (Dhalkebar–Muzaffarpur, Hetauda–Dhalkebar–Inaruwa, Butwal–Gorakhpur under construction) is being built to evacuate and export power.
- The Energy Development Roadmap and Action Plan (2080 BS) targets about **28,500 MW by 2035**, with about 15,000 MW for export.

#### Challenges
Transmission delays, spill of energy in the wet season, low domestic demand, high PPA cost, dry-season import dependence, and climate risks (floods, GLOFs, sediment).

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What is the share and type of hydropower in Nepal's capacity?
   A. About 50%, mostly storage
   B. About 95%, mostly run-of-river
   C. About 95%, mostly storage
   D. About 20%, mostly solar
   Answer: B. Hydropower gives about 95% of capacity and most plants are run-of-river. (Key point: Generation mix)

2. Why does Nepal have a wet-season surplus and dry-season deficit?
   A. Demand is only in winter
   B. Most plants are run-of-river with low dry-season flow, so import is needed
   C. Solar fails in monsoon only
   D. Transmission is absent
   Answer: B. ROR plants produce much less in the dry season, so Nepal imports from India in Dec-Apr. (Key point: Seasonal mismatch)

3. Which projects are planned to fix the dry-season deficit?
   A. More ROR plants
   B. Diesel plants
   C. Storage projects such as Tanahu and Budhigandaki
   D. Nuclear plants
   Answer: C. Storage projects can hold wet-season water for dry-season use. (Key point: Fixing deficit)

4. What does the Energy Development Roadmap target?
   A. About 28,500 MW by 2035, with about 15,000 MW for export
   B. 10,000 MW by 2025
   C. 3,000 MW by 2030
   D. All for domestic use
   Answer: A. The roadmap targets about 28,500 MW by 2035 with about 15,000 MW for export. (Key point: Policy target)

## Related in Power Plant Design

- [World renewable energy scenario](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Aworld-renewable-scenario) — Power Plant Design, chapter 1
- [Nepal electricity demand, supply and trend](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Anepal-demand-supply-trend) — Power Plant Design, chapter 1
- [World renewable trends and impact on Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Aworld-renewable-trend-nepal) — Power Plant Design, chapter 1

## Related in other subjects

- [Report on electricity demand-supply mismatch](https://www.bctengineer.com/question.md?key=semester_5%2Fcommunication_english%3Areport-electricity-demand-supply-mismatch) — Communication English, chapter 9
- [Major electricity sources and sustainability](https://www.bctengineer.com/question.md?key=semester_4%2Fpower_system_analysis_i%3Aelectricity-sources-sustainability) — Power System Analysis I, chapter 1
