Kathmandu: Nepal’s electricity production capacity has surged to 3,157 megawatts (MW), marking a notable increase of approximately 1,700 MW over the past three years, according to the latest data from the Nepal Electricity Authority (NEA).
The NEA’s records reveal that Nepal’s total production capacity has expanded by about 2,300 MW over the past eight years. In comparison, the installed capacity stood at 855.88 MW by the end of the fiscal year 2014/15.
Hydropower plants dominate the energy landscape, contributing 95 percent of the total installed capacity. The remaining capacity includes 53 MW from thermal plants, 107 MW from solar energy, and 6 MW from biomass.
Of the 2,991 MW of installed hydropower capacity, private sector investments account for approximately 1,900 MW, while the NEA and its subsidiaries contribute the rest.
Kulman Ghising, managing director of the NEA, reported that peak electricity demand has risen to 2,650 MW, a substantial increase from around 40 MW five decades ago.
Ghising highlighted a significant rise in power purchase agreements (PPAs), with the NEA signing agreements for 10,300 MW to date, compared to just 2,800 MW eight years ago. This growth is attributed to government policies that encourage private sector involvement in hydroelectricity production.
Currently, hydropower projects with a combined capacity of 7,000 MW are under construction. Additionally, around 10,000 MW of projects are in the process of signing PPAs, and the NEA is seeking agreements for 800 MW of solar power.
Looking ahead, the NEA aims to increase Nepal’s electricity production capacity to 10,000 MW by the fiscal year 2028/29. Projects nearing completion include 270 MW led by the NEA’s subsidiary Chilime Hydropower Company, with plans for another 300 MW soon.
The NEA has also initiated the construction of several key projects: 42 MW Upper Modi A, 18.2 MW Upper Modi, 210 MW Chainpur Seti, and 99 MW Tamakoshi V. Notably, financial closures have been completed for the 1,063 MW Upper Arun and 670 MW Dudhkoshi Storage Hydropower plants.