Overview of Nepal Electricity

Nepal is a South Asian landlocked country. It has a huge hydropower potential as it is the second highest country in water resources after Brazil. Himalayan country Nepal is blessed with Koshi, Gandaki and Karnali river systems and other rivers hurtling from northern Himalayas towards southern plains and thence entering India. Theoretical hydropower potential of these rivers is estimated to be around 83,000 MW, which is the 2nd highest figure in the world. In fact, the perennial nature of Nepal's rivers and the steep gradient of the country's topography provide ideal conditions for the development of some of the world's largest hydroelectric projects in Nepal.

The annual peak power demand of the Integrated Nepal Power System (INPS) in fiscal year 2013/14 is estimated to be 1,201 MW. But the total power supplied is only 791 MW out of which 436.4 MW was contributed by Electricity Department hydro, 22 MW by Electricity Department thermal, 216.4 MW by IPP hydro and the rest 116.2 MW was imported from India. In comparison to preceding fiscal year, the annual peak power demand of the INPS grow by 9.7%.

Due to sound operation of the power system, the maximum load shedding hours was 12 per day tentatively. Electricity Department resorted to all possible means to minimize load shedding; including purchase of all excess energy from the IPPs, operation of costly diesel plants for our country and all possible import under power exchange agreement and power trade with India.

Total energy sales including sales to India was 3,447.58 GWh in fiscal year 2013/14. This is a growth by 9.1 % in the sales figure of fiscal year 2012/13. Sales to India however declined to 3.32 GWh from 3.6 GWh in fiscal year 2012/13.

The total number of consumers including community and bulk buyer (India) consumer categories at the end of fiscal year 2013/14 reached 2.71 million. Out of the total number of consumers of 2.71 million, the domestic consumer category alone accounted for 2.56 million (94.37%).