Nepal''s ambitious energy vision
A review of major national development documents and policy frameworks reveals a strong and consistent prioritisation of energy development, driven by goals of sustainability,
Nepal's projected investment to develop the energy sector, as outlined in the National Adaptation Plan (NAP), is estimated at approximately $6 billion. However, the contribution from Nepal's national budget remains relatively low.
Nepal is not attempting to put limitations on its energy growth, as it wants to become a major exporter of surplus power to neighbouring markets. Additionally, the country is poised to implement an intervention to increase the share of renewable energy (excluding large hydro power) to 10 percent of total installed capacity by FY 2028-29.
Nepal's heavy reliance on hydropower makes it vulnerable to seasonal variations, which means more reservoir-based projects are needed to cover dry-season shortages.
Nepal plans to increase its installed electric power capacity to 11,769 MW by FY 2028-29, with further expansion to 28,500 MW by 2035. This will be further heightened to a per capita power consumption of 700 kWh by FY 2028-29 and 1,500 kWh by 2030.
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