Nepal has significant potential for hydropower but currently relies heavily on biomass. Per capita energy consumption is low but rising. The domestic energy sector faces challenges including high fossil fuel imports and an energy crisis. Renewable energy such as solar and hydropower are being developed but Nepal remains a net electricity importer. Energy efficiency improvements could reduce oil imports and costs. The COVID-19 pandemic has reduced energy demand and revenue. The government is working to expand generation and transmission infrastructure to increase access to electricity.

1. Energy Scenario of Nepal
Mohammad Abul Hasan Khan

2. Energy Introduction of Nepal
• Biomass, hydroelectricity, petroleum products, natural gas, and coal
are the major energy resource of Nepal.
• 42,000MW is feasible with no environmental hazards.
• However, 82% of the population use solid fuels such as coal, dung and
wood as cooking energy. 78% population have access to electricity.
• Peak load is 1,320 MW as on July 2019.
• Per capita energy consumption 245 kWh and expected to be 700 kWh
in nest 5 years whereas 1500 kWh in next 10 years.
• Last year Nepal spent almost NRP 20 Arab importing electricity from
India, on top of the NPR 90 Arab in petroleum.
Source: - Economic Survey 2018/19 and NEA Annual Report 2019

3. Energy consumption (kWh per capita)
(Source – https://www.worldometers.info/ & IEA)
17.70%
0.37%
2.83%
2.11%
0.01%
0.50%
0.27%
0.01%
5.2000%
0.0277%
0.5466%
0.2434%
0.0105%
0.0248%
0.0658%
0.0042%
Population Share Energy Consumption Share
0
100
200
300
400
500
600
700
800
900
kWh
Bangladesh India Sri Lanka Nepal Pakistan

4. Sector-wise Electricity Consumption (GWh)
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
2013/14 2014/15 2015/16 2016/17 2017/18 2018/19*
Household Industry Commerce Other
Linear (Household) Expon. (Household) Expon. (Industry)
Source: - NEA Annual Report 2019

5. Status of Renewable Energy
• About 18.0 % of the total population has access
to electricity from renewable energy sources and
36.0 percent of the population has used clean
renewable energy for various purposes.
• A total of 3,414 bio-gas plants have been
installed.
• 33,455 domestic solar power plants, 14,945
improved stoves and 111 improved water mills
have been installed.
Source: - Economic Survey 2018/19
30.6 MW
26.5 MW
24.0 MW
25.0 MW
26.0 MW
27.0 MW
28.0 MW
29.0 MW
30.0 MW
31.0 MW
micro and small
hydro projects
Solar and Wind
projects
Alternative Energy

6. Status of Renewable Energy
1. Solar
• Annual sunshine 300
days.
• 54 MW capacity of Solar
power plant
• DoED has approved
survey licenses for 21
locations with combined
capacity of 317.14 MW.
2. Biogas
• Biomass comprises wood,
agricultural residues and
dung
• 95% of the biomass is
predominantly and
traditionally used for
households purpose.
• 40 % of the firewood
comes from the
sustainable supply
3. Fossil Fuel
• Petroleum (imported from
India) is the second largest
energy fuel in Nepal after
firewood.
• It is 8% of primary energy
consumption in Nepal.
• Coal stands for 2 % of the total
energy consumption and
mainly used for heating &
boiling process.

7. ENERGY MIX IN NEPAL
Source: - http://energyefficiency.gov.np/downloadthis/final_data_book__11_june_2014.pdf
83.40%
5.90%
7.50%
1.90% 1.30%
Final Energy Consumption Mix
Residential
Industry
Transport
Commercial and
public services
Agriculture/Fore
stry80.40%
2.80%
4.10%
11.60%
1.10%
Primary Energy Supply Mix
Biomass
Hydro
Coal
Petroleum
Products
Natural Gas

8. Hydro Power Plants Under Construction
S.No Under Construction Capacity (kW)
1 Upper Tamakoshi Hydropower Project 456,000.00
2 Tanahu Hydropower Project 140,000.00
3 Kulekhani III HEP 14,000.00
4 Rahuganga HEP 40,000.00
5 Upper Sanjen 14,600.00
6 Sanjen 42,500.00
7 Rasuwagadi 111,000.00
8 Madhya Bhotekoshi 102,000.00
9 Upper Trishuli 3B 37,000.00
Total 957,100.00
Source: - NEA Annual Report 2019

9. Impact of COVID-19 on Energy Sector
• Before the COVID-19, a projection had led to
about 1,000 MW of capacity addition from
50 new projects which has dropped to
about 355 MW of capacity from 30 projects
in total against the backdrop of the COVID-
19 outbreak.
• The demand has dropped significantly,
about 25 per cent off from the pre-corona
peak
• NEA’s monthly revenue is shrinking by
around NPR 1.8 Arab in the present context
0 GWh
5 GWh
10 GWh
15 GWh
20 GWh
25 GWh
Normal condition Lockdown Condition
Daily Energy Consumption (GWh)
Source: - https://thehimalayantimes.com/opinion/covid-19-in-nepals-power-sector/

10. Core Sector Issues, Constraints, and Opportunities
1. Energy Crisis - Nepal has faced an unprecedented energy crisis due to
the acute shortage of power and petroleum products. This energy crisis
has seriously constrained economic and social development.
2. High Dependence on Import for Fossil Fuel Supply, and Inadequate
Storage Capacity - Nepal’s oil storage capacity is just enough for 20 days
of national sales, compared with 270 days in Israel, 240 days in Korea,
and 137 days in USA.
3. Inadequate Power Supply Systems - Despite its abundant hydropower
resources and significant potential to export electricity, Nepal is a net
importer of electricity. Timely commissioning of transmission lines.

11. Provisions in FY 2077/78
Monthly Electricity Consumption Discount Rate
Small Household
users
upto 10 kWh 100%
upto 150 kWh 25%
upto 250 kWh 15%
Khane Pani and Irrigation Community
Free Demand Charge
and convenience on
electricity bill
During the lockdown period, the production based
industries impacted by Covid-19
Free Demand Charge
and 50% on electricity
use at off peak hours
Source: - http://moewri.gov.np/storage/listies/May2020/Budget-Speech-2077-078-MOEWRI.pdf

12. Provisions in FY 2077/78
Source: - http://moewri.gov.np/storage/listies/May2020/Budget-Speech-2077-078-MOEWRI.pdf
• In FY 2077/78, 1300 MW of electricity from Upper Tamakoshi, Rashuwagadhi,
Upper Sanjen, Middle Bhotekoshi, and small & Medium hydro projects of Private
Investors will be added to the national transmission.
• The construction of interstate 400 kV transmission line will be started from
Anarmani, Jhapa to Kanchanpur, Mahendranagar, Ramphendi-Ratamate-Hetauda
and Lapsiphendi-Ratamate-Damauli-Butwal and Dhalkebar-Mujaffarpur. The
construction of Butwal-Gorakhpur, Lamki-Bareli and Galchi-Kerung division
transmission line will also be started.
• The increment in electricity consumption will be encouraged. Incentives will be
provided to the user of electrical household appliances including induction stove,
operation of electrical means of transportation, energy consuming industries and
the industries using energy during off peak hours.

13. Energy Intensity Trend in Selected Countries
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1990 1995 2000 2005 2008 2011 2014
Toe/$’000
World Nepal Bangladesh Sri Lanka
Expon. (World) Linear (Nepal) Expon. (Sri Lanka)
Nepal’s energy
intensity is about
four times higher
than the world
average, largely
because of
inefficiencies in
energy
consumption.
-25%
-20%
-15%
-10%
-5%
0%
Japan South Africa Germany China India Mexico
%age of Oil import reduction due to Efficiency gains
Source: - IEA

14. Energy Efficiency Stars highlighted by
the red color
indicates the star
rating.
Yearly Electricity
consumption in kWh.
The less units, less is
the energy
consumption and
smaller is the
electricity bill.
Explanation of the
application, brand,
model and year of
manufacturing.
Indian BEE level as
identification of the
authenticity

15. Energy Efficiency
How much can you save per year? How long is the payback period?

16. Why Energy Efficiency?

17. General Energy Saving Tips at Home
1. Unplug Unused Electronics
2. Wash Full Loads - When doing laundry, make sure every load is a full load.
3. Turn Off the Lights
4. Switch Light Bulbs
5. Set The Temperature
6. Energy Star Products

18. Comparison of LPG vs Induction Stove
LPG (14.2 kg) Induction (1 kWh)
Energy Content (in kWh) 144,146 kCal = 167.6 kWh 1 kWh
Energy Cost NPR 1375 = NPR 8.20 /kWh NPR 10.5/kWh
Efficiency 45% 85%
Energy consumption for
heating 10 ltrs of Water
1.94 kWh 1.09 kWh
Cost for Heating 10 ltrs of
Water
NPR 16 NPR 11
Savings NPR 0 NPR 5

19. Comparison of LPG vs Induction Stove
Features Induction Stove LPG Gas Stove
Energy Efficiency 80-90% 40-50%
Safety High Moderate
Weight & Space Requirement Low High
Comfortability High Low
Maintenance Low High
Capital Cost Moderate High
Recurring Cost Low Moderate
Induction cooktop is a better option if safety, efficiency and
operating costs (LPG may be comparable in some areas)

20. Comparison of Electric and Diesel Vehicle
Creta Diesel Tata Nexon EV
Vehicle Type Diesel Electric
Power Capacity 115 PS 129 PS
Milage 21.6 kmpl 0.1 kWh/km
Fuel/Energy Consumption
(for 50,000 km of running)
2400 ltrs 5000 kWh
Fuel/Energy Rate 85 NPR/ltr 10.5 NPR/kWh
Fuel/Energy Cost NPR 2,04,000 NPR 52,500
Cost Saving NPR 0
NPR 1,51,500
(1780 ltrs of Diesel)
Emission High No Emission

21. Energy Efficiency in Industries
Energy efficiency Nepalese industries could save about 160,000 MWh hours electricity
every year which is equivalent to the annual consumption for 215,000 Nepalese
households.

22. Energy Efficiency in Industries
Thermal energy the saving potential is about 8 Giga Joule which is equivalent to the
import of 215 Billion liters of Diesel.

23. Energy Saving Opportunities in Industries
• Take Advantage of Consumption Periods
• Compressed Air Systems
• Upgrade your Equipment
• Improve Process Heating

24. Conclusion
1. The energy generation and consumption of Nepal is
increasing.
2. There is enormous potential of energy efficiency
3. With increased energy efficiency, the oil import will reduce.

25. Thank You Very Much
for your Kind
Attention
Mohammad Abul Hasan Khan
9857037787