Kathmandu: Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has said the government is committed to developing the energy sector as a key driver of Nepal’s economic transformation. He stated that transmission lines, electricity distribution systems, irrigation infrastructure, and energy trade have been given top priority in the upcoming fiscal year.
Responding on Tuesday to questions raised during discussions on the Appropriation Bill 2026 in the National Assembly of Nepal regarding the Ministry of Energy, Water Resources and Irrigation, Minister Shrestha said the ministry is taking electricity supply issues seriously and is implementing immediate, medium-term, and long-term strategies to address them.
He noted that the ministry’s 1151 hotline and the 1150 hotline of the Nepal Electricity Authority operate 24 hours a day to respond to public complaints. According to the minister, around 18,300 complaints received over the past three months have been resolved.
Minister Shrestha said that although Nepal’s current electricity generation exceeds domestic demand, electricity supply has been affected in some areas due to aging transmission and distribution infrastructure, rapidly increasing electricity demand, and adverse weather conditions.
He said the government aims to complete 12 transmission lines during the next fiscal year, including nine 132 kV transmission lines, two 220 kV transmission lines, and the Nepal–India cross-border transmission line. A budget of NPR 46.25 billion has been allocated for the expansion and improvement of domestic and cross-border transmission and distribution systems.
On irrigation, the minister said the government has adopted a policy of prioritizing the timely completion of under-construction and nationally significant projects rather than launching new ones. The government aims to expand irrigation services to an additional 15,776 hectares of farmland in the coming fiscal year, increasing the country’s irrigated area coverage to 64 percent.
He added that detailed implementation plans, along with adequate budgets and performance indicators, have been prepared for major projects such as the Babai Irrigation Project, the Bheri-Babai Diversion Project, and the Sunkoshi-Marin Diversion Project. Priority will also be given to groundwater irrigation, deep tube wells, lift irrigation, small reservoirs, and river control programs in the Terai-Madhesh region.
Regarding power generation, Minister Shrestha said the government aims to increase Nepal’s total installed electricity generation capacity to 5,535 MW by the end of the next fiscal year. He noted that national electricity access has reached 97.6 percent, with a target of increasing it to 98.1 percent by the end of the upcoming fiscal year.
He said electricity services in the remaining unserved areas will be expanded through micro-hydropower, solar, wind, and other renewable energy sources.
The minister also emphasized that the focus should now shift beyond electricity generation to increasing domestic consumption and expanding energy trade. He said the government has begun implementing the Energy Consumption Growth and Export Strategy 2083, which aims to boost domestic electricity use while exporting surplus electricity generated during the monsoon season to regional markets.
Highlighting that Nepal has adopted a policy of electricity market liberalization for the first time, Minister Shrestha said the government is advancing legal provisions that will allow the private sector to trade electricity in both domestic and international markets. The proposed framework will also enable private investors to build transmission lines and engage in electricity trading through wheeling charges.
Jalasarokar
