Urja Khabar
Kathmandu: The year 2081 BS has been an encouraging period for Nepal’s energy development sector, marked not only by steady progress in electricity generation, transmission, and trade, but also by the initiation of several new and transformative undertakings.
According to the Nepal Electricity Authority (NEA), a total of 456 MW of electricity has been added to the national grid in this year alone. Moreover, for the first time, Nepal has begun exporting electricity to a third country—Bangladesh—via Indian transmission network. The government of Nepal (GoN) has also outlined an ambitious target of developing 28,500 MW of electricity by 2035. Significant strides have been made in the development of cross-border transmission infrastructure as well. The key achievements in the sector are highlighted below:
Additional Generation
From Baisakh to Chaitra 2081 BS (till April 13, 2025), electricity generation from 20 new projects contributed an additional 456.45 MW to Nepal’s national grid. Among these, 18 are hydropower and, 2 are solar power projects. During this period, 10 MW of electricity was added from solar, with the remainder coming from hydropower sources.
Energy Development Roadmap
In 2081 BS, the GoN introduced the Energy Development Roadmap, setting a visionary target of generating 28,500 MW of hydropower by 2035 AD. This roadmap outlines an ambitious plan to transform Nepal’s energy landscape, with 15,000 MW of the projected generation intended for export in neighbouring country and, 13,500 MW for domestic consumption.
To realize this vision, the roadmap proposes a significant scaling-up of the country’s current installed capacity—from the existing 3,500 MW to 28,500 MW—and aims to increase annual per capita electricity consumption from 400 units to 1,500 units. Furthermore, the roadmap seeks to boost electricity exports from 700 MW to 15,000 MW, and extend the total length of transmission lines from 6,507 circuit kilometers to 17,446 circuit kilometers.
Similarly, it targets an expansion of substation capacity from 13,050 MVA to 40,000 MVA, while achieving 100% electricity access across the country. In terms of consumption, the roadmap projects an increase in annual domestic electricity demand from 12,700 GWh to 40,710 GWh.
To accomplish these goals, the roadmap incorporates legal and policy reforms, as well as extensive development of infrastructure for generation, transmission, and distribution. It emphasizes the need for adequate financial investment and skilled human resources, alongside strategic electricity trade programs. Supporting this vision, the government has also prepared an Energy Development Action Plan, which outlines the steps required to mobilize an estimated investment of USD 46.5 billion (around NPR 64 trillion) by 2035. If implemented as planned, this roadmap has the potential to fundamentally reshape Nepal’s energy sector and significantly contribute to its economic growth.
Electricity Export to Bangladesh
In a historic first, Nepal began exporting electricity to Bangladesh in 2081 BS. On 20 Kartik 2081, Nepal exported 40 MW of electricity to Bangladesh from 12:30 PM to midnight, using the Indian transmission network.
The symbolic launch was jointly inaugurated by Nepal’s Minister for Energy, Water Resources, and Irrigation Deepak Khadka, India’s Minister of Power Manohar Lal Khattar, and Bangladesh’s Energy Advisor Mohammad Fouzul Kabir Khan. The electricity was transmitted via the Dhalkebar–Muzaffarpur 400 kV cross-border transmission line, further routed through Baharampur (India)–Bheramara (Bangladesh) transmission line.
Nepal is set to export electricity to Bangladesh again during the upcoming monsoon (starting June 15, 2025). Given Bangladesh’s growing interest in buying power from Nepal and India’s positive stance, this development is viewed as a highly promising move for Nepal’s electricity market.
High Voltage Cross-Border Lines
The Nepal-India Joint Secretary-Level Energy Committee Meeting, held in Falgun 2081, reached a major agreement on the development of high-capacity cross-border transmission lines. As per the agreement, the Nijgadh–Harinya–Motihari 400 kV and Kohalpur–Lucknow 400 kV lines are to be constructed by 2034–35 AD.
It was also decided to upgrade the Dhalkebar–Muzaffarpur 400 kV line with a higher capacity conductor, raising its transmission capacity from 800 MW to 1,000 MW. Furthermore, construction of the Inaruwa–Purnia 400 kV, Dododhara–Barely 400 kV, and Chamelia–Jaulijibi 220 kV double-circuit transmission lines is being pursued, with the latter expected to be completed by 2027.
Resolution of Tariff Disputes
A longstanding tariff dispute between NEA and industrial consumers over dedicated feedar and trunk lines is finally moving toward resolution. Following discussions on 11 April (29 Chaitra 2081), both parties agreed to a review mechanism, wherein 5% of the dues would be held as a guarantee. This paves the way for resolving an issue that had been under review by various parliamentary committees, the Cabinet, and the Lal Commission.
Private Sector engage in Transmission Line
For the first time in Nepal’s history, the private sector has been allowed to participate in transmission line construction. Under a Public–Private Partnership (PPP) model, the Rastriya Prasaran Grid Company Limited has advanced projects where developers of hydropower projects along specific corridors also hold shares in the transmission infrastructure.
One such agreement was signed on 17 December (2 Poush 2081) for the construction of the Tamor–Dhungesanghu 220 kV transmission line. This marks a new approach to developing transmission infrastructure in Nepal.
Collateral-Free Share Loans for the Poor
To revive the once-prominent People’s Hydropower Program, Minister Khadka introduced a policy reform enabling the poor and underprivileged to receive collateral-free loans ranging from NPR 200,000 to NPR 500,000 at subsidized interest rates to invest in hydropower shares.
DMS System
The Electricity Regulation Commission implemented an online Document Management System (DMS) this year, enhancing the transparency and efficiency of its services. Consumers can now track the status of their applications, identify any deficiencies in their documents, and receive service timelines—all from their home or office.
Electrification of Susta
For the first time ever, Susta—an area in Nawalparasi near the Indian border across the Narayani River—was connected to Nepal’s central electricity grid. An 11 kV distribution line was extended across the newly constructed Bholunge Bridge to bring electricity to the region.
Additional Progress
Beyond these milestones, dozens of other projects have made headway this year. Numerous hydropower projects are under development by the private sector, and new hydropower companies are being listed on the stock market almost daily. These developments are playing a vital role in expanding Nepal’s overall economy.
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