Government Unveils Ambitious Energy Strategy to Generate 24,500 MW by 2092/93

The Government of Nepal has officially launched the ‘Energy Consumption and Export Strategy, 2083’, setting an ambitious target to generate 24,500 megawatts (MW) of electricity by the fiscal year 2092/93 BS through investments from public, private, and government sectors.

The strategy incorporates a wide range of projects, those proposed, under study, under construction, and ready for development, while emphasizing a diversified energy mix that includes reservoir-based, semi-reservoir, and solar power projects.

Among the major highlights, the much-anticipated Budhigandaki Hydropower Project is expected to be completed by 2081 with a capacity of 1,200 MW. Other key projects include the 40 MW Raghuganga Hydropower Project, nearing completion, and the 140 MW Tahe Hydropower Project, targeted for completion by 2085/86. Several mid-sized projects such as Upper Modi A (42 MW), Upper Modi (18.2 MW), and Upper Trishuli 3B (37 MW) are also scheduled for completion in the coming years.

Large-scale projects like Upper Arun (161 MW) and Nalgad (417 MW) are set to be finalized soon, while Arun IV (490 MW) and Betan Karnali (439 MW) are expected to be completed by 2090. Similarly, Chainpur Seti (210 MW), Tamakoshi V (99 MW), Naumure (281 MW), and the massive Uttarganga Hydropower Project (828 MW) have been prioritized under the action plan.

The strategy also places strong emphasis on renewable energy expansion, including a 1,000 MW solar initiative to be led by the Nepal Electricity Authority, targeted for completion by 2085. Private sector-led solar projects will complement this effort, contributing to a broader energy mix.

Additionally, projects with a combined capacity of 3,500 MW led by government entities and 14,000 MW backed by the Independent Power Producers' Organization Nepal are expected to be completed within the same timeframe.

To support growing production and export, the government plans to construct 14 domestic and 10 cross-border transmission lines, alongside completing an underground distribution system by 2085.

The strategy further includes measures to boost domestic electricity consumption, such as promoting electric cooking through subsidies, expanding EV charging infrastructure, replacing coal-based boilers with electric systems, and electrifying irrigation in agriculture. Special electricity tariffs will also be introduced for energy-intensive industries like fertilizer production and data centers.

Overall, the strategy aims to ensure reliable electricity supply, strengthen energy trade, and position Nepal as a key regional energy exporter.