Kathmandu, October 6, 2024 – Nepal’s electricity grid is experiencing unprecedented demand, as the nation witnesses rapid urban growth, industrial expansion, and a rise in household electrification. The Nepal Electricity Authority (NEA) has confirmed that electricity consumption has reached an all-time high this month, driven by both residential and commercial sectors, as well as the upcoming festive season.
To meet the growing demand, the NEA is fast-tracking infrastructure upgrades and expanding capacity, relying heavily on the country’s hydropower potential. Currently, hydropower accounts for over 90% of Nepal’s electricity generation, but the increasing load on the grid has highlighted the need for more efficient distribution and generation strategies.
“We are facing record levels of electricity demand, and our grid is under pressure, especially during peak hours,” said Pradeep Thike, managing director of the NEA. “While we’ve made substantial improvements in the grid and reduced reliance on power imports, there is still work to be done to ensure stable supply across all regions.”
The government is also pushing forward with several major hydropower projects, such as the 900 MW Arun III and the 1,200 MW Budhi Gandaki projects, which are expected to boost the national grid significantly in the coming years. In the meantime, the NEA has been importing electricity from neighboring India to fill the gap, ensuring continuous supply and avoiding load-shedding.
However, the aging transmission infrastructure remains a bottleneck. In some regions, especially in the remote areas of western and far eastern Nepal, residents still face challenges with power cuts and voltage fluctuations. To address this, the NEA has initiated several transmission line upgrades and plans to introduce smart grid technologies that will help balance load distribution more effectively.
Environmental sustainability has also come into the spotlight, as Nepal continues to emphasize its commitment to clean energy. Hydropower development remains at the center of the country’s energy strategy, and the government is also exploring the potential of solar energy and wind power to diversify the energy mix in the long term.
In addition to expanding production, energy efficiency initiatives are being promoted to curb unnecessary electricity usage. The NEA has launched a nationwide campaign encouraging the use of energy-efficient appliances and advocating for responsible energy consumption, particularly as the Dashain and Tihar festivals approach, when power usage typically spikes.
Despite the challenges, experts believe that Nepal’s energy sector is on the right track. “With strategic planning and continuous investment in infrastructure, Nepal has the potential to not only meet its domestic energy needs but also become a key energy exporter in the region,” said energy analyst Surya Pradhan.
As the country moves toward energy security, both the government and the public are urged to collaborate in ensuring that Nepal’s growing energy needs are met sustainably and efficiently, helping power the nation’s economic and social development.
