Nepal’s electricity use triples

Per capita energy consumption reached 400 units in the last fiscal year, according to data released by the Nepal Electricity Authority (NEA). Following the end of load shedding in the country and the regular supply of electricity, energy consumption has tripled. 

In the fiscal year 2015/16, energy consumption was 3.72bn units, but by 2023/24, it had increased to 10.2bn units. Over the span of eight years, the country’s energy consumption grew by 6.51bn units. Last year, 4.31bn units were consumed domestically, while industrial consumers used 3.69bn units. Eight years ago, per capita energy consumption was just 131 units.

Eight years ago, there was eight hours of daily load shedding even during the rainy season, with projections of up to 14 hours per day in winter. Starting in Oct 2016, load shedding was eliminated for domestic consumers in the Kathmandu Valley and gradually in other major cities, followed by the end of load shedding for industrial consumers. By April 2022, the entire country was declared load shedding-free.

At that time, only 58 percent of households had access to electricity. Today, electricity reaches 99 percent of households, with 97 percent connected to the national grid and two percent powered by small hydropower, solar energy, and other sources. The number of electricity consumers has grown from around 3m to approximately 5.9m, including community users.

NEA’s Managing Director, Kul Man Ghising, attributes the increase in energy consumption to the regular supply of electricity following the end of load shedding. “Industries are receiving a consistent electricity supply, and their loads are being approved. There is also an increasing use of electricity for household purposes, such as cooking, and in both private and public vehicles. Electrification has been rising rapidly, resulting in increased energy consumption,” Ghising said. “Each year, with rising demand for electricity, the challenges in supply increase. To provide reliable, standard, and safe electricity, major cities have been divided into 11 clusters, and a plan for transmission and distribution infrastructure to meet demand until 2050 has been prepared and is being gradually implemented.”

Electricity consumption, which was 3.72bn units in 2015/16, increased by 28.47 percent to 4.77bn units in 2016/17. Consumption reached 5.56bn units in 2017/18, 6.3bn units in 2018/19, 6.42bn units in 2019/20, and 7.28bn units in 2020/21. In 2021/22, 8.84bn units were consumed, 9.35bn units in 2022/23, and 10.2bn units in 2023/24.

Electricity consumption increased by about 10 percent in 2023/24 compared to 2022/23. The peak demand for electricity in 2023/24 rose by 11.34 percent compared to the previous year, with the highest demand recorded on May 30, 2023, at 2,212 megawatts.

Although Nepal exports electricity to India for six months during the rainy season, winter sees a decrease in production from run-of-river hydropower projects, necessitating imports to meet domestic demand. However, the amount of imported energy is decreasing. Last year, imported energy accounted for 14.68 percent of the system’s supply, an 8.57 percent reduction from the previous year.

Electricity exports increased by 44 percent in the last fiscal year. About 1.9bn units of electricity worth Rs 16.93bn were imported from India, but 1.95bn units worth Rs 17.06bn were exported, making Nepal a net exporter of electricity by a margin of over Rs 130m.