Nepal’s Electricity Consumption Triples in 8 Years, Challenges Emerge

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Kathmandu, 25 August 2024. Since the end of load-shedding in the country and the regular supply of electricity, the consumption of electricity (energy) has increased three times.
In the fiscal year (2072-073), 3.72 billion units of energy were consumed, and in the last fiscal year 2080-081, it reached 10.2 billion units. In the period of eight years, electricity consumption in the country has reached 6.51 billion units. Eight years ago, the growth rate of electricity consumption was negative.
Last year, 4 billion 31 million units of electricity were consumed by households and 3.69 billion units by industrial customers. The rest of the electricity was consumed by customers of other groups. The per capita energy consumption reached 400 units by last year, which was 131 units eight years ago.
Eight years ago, even during the rainy season, there was 8 hours of load shedding every day. It was predicted that load shedding would be required for 14 hours a day in winter. From Kartik 2073, the load shedding of the consumer side of the major cities of the country and then of the industrial customer was ended successively through the Kathmandu valley. The entire country was declared free from load shedding from Baisakh 2075.
8 years ago only 58 percent of households had access to electricity. Now electricity has reached 99 percent. 97 percent of the households that have access to electricity are consuming electricity from the national grid and 2 percent from off-grid small hydropower, solar energy, etc. A year ago, the number of electricity customers was around 300,000, but now it has reached 5935,000, including community ones.
Managing Director of Nepal Electricity Authority, Kulman Ghising, said that after the end of load shedding, electricity consumption has increased since sufficient continuous power supply started.
“Large and small industries are receiving continuous electricity supply, during this period, the loads of industries have been approved, the use of electrical appliances for household purposes including cooking has increased, the use of electric vehicles in private and public transport is increasing, electrification has been done extensively, due to which internal electricity has increased. Consumption is increasing,’ said Executive Director Ghising.
With the increase in electricity demand every year, challenges have been added to electricity supply. After solving such challenges and problems, the main cities of the country with reliable, quality and safe electricity supply to consumers have been divided into 11 clusters and a master plan of transmission and distribution structure that can supply the demand until 2050 has been prepared and gradually. It has been implemented.’
He mentioned that work is being done to increase the consumption of electricity internally, reduce imports by increasing production and increase exports.

Electricity consumption which was 3.72 billion units in FY 2072/073 increased by 28.47 points to 4.77 billion units in FY 2073/074. Electricity consumption was 5.56 billion units in 2074/075, 6.30 billion units in 2075/076, 6.42 billion units in 2076/077, and 7.28 billion units in 2077/078.
Similarly, in 2078-079, 8.84 billion units of electricity were consumed, in 2079-080, 9.35 billion units and in 2080-81, 10.2 billion units of electricity were consumed. Compared to the year 2079-80, electricity consumption has increased by about 10 percent in the year 2080-81.
In the last year, the peak demand (time of high demand for electricity) increased by 11.34 percent compared to the previous year 2079-80. The highest demand for electricity in the country was recorded on May 16 last year. On that day, the peak demand reached 2,212 megawatts.
Although electricity is exported to India for 6 months of the rainy season, in winter, the electricity production of the river-flowing hydropower projects decreases, and electricity has to be imported to meet domestic demand for a few months. However, the amount of energy imported into the system is decreasing. Last year, the share of imported energy in the system was 14.68 percent. Which is 8.57 percentage points less than the previous year. Electricity export has increased by 44 percent.
Last year, 1 billion 900 million units or 16 billion 93 million rupees worth of electricity was imported from India. But during this period, 1.95 billion units of electricity were exported to India and the income was 17.6 billion rupees. Last year, Nepal became a net exporter of electricity from being a net importer of electricity by exporting more than 13 million rupees more than imports.