Nepal’s ambitious plan to raise its electricity generation capacity to 30,000 megawatts within the next decade is being seen as achievable, but only if backed by a clear roadmap and faster execution.
Despite vast hydropower potential, the country continues to struggle with energy security. Current installed capacity stands at around 4,000 MW, with surplus electricity exported during the monsoon. However, Nepal still relies on imports in the dry season to meet nearly a third of its demand, exposing gaps in long-term planning.
The government’s new target aligns with earlier plans to significantly scale up energy production by the mid-2030s. Experts say the goal is realistic, especially considering projects already in the pipeline. Power purchase agreements and proposed projects together indicate potential capacity nearing 27,000 MW, even before major reservoir-based projects are included.
Still, challenges remain. Limited transmission infrastructure, delays in project financing, and policy hurdles have slowed progress. Many hydropower projects face uncertainty due to rigid contract terms, delays in transmission line construction, and lack of guaranteed power evacuation.
There is also a growing call to expand the role of the private sector, not just in generation but also in electricity trade. At present, Nepal Electricity Authority remains the sole buyer and distributor, limiting market flexibility.
Regional geopolitics continues to shape Nepal’s energy future. Restrictions in cross-border electricity trade, particularly with India, have affected export potential, especially for projects involving foreign investment.
To meet its target, the government is being urged to prioritise transmission development, streamline approvals, and adopt faster implementation models. Without coordinated action, delays in one area could trigger a chain reaction across the sector.
As Nepal looks to reduce fuel imports and strengthen its economy, the success of its energy ambitions may depend less on potential and more on political will and execution.
