The Government of Nepal has formally received the Energy Consumption Enhancement and Export Strategy, 2083, aimed at strengthening domestic electricity consumption and expanding Nepal’s clean energy exports to regional markets. According to a press release issued by the Ministry of Energy, Water Resources and Irrigation on Baisakh 10, 2083 BS, the strategy was submitted to the Energy Minister by a high-level committee coordinated by Joint Secretary Sandeep Kumar Dev. The committee was established following a ministerial-level decision on Chaitra 16, 2082 BS, in accordance with Action Point 74(a) of the government’s 100-Point Governance Reform Action Plan, approved by the Cabinet on Chaitra 13, 2082 BS. The strategy also incorporates the related provisions of Action Point 74(c), positioning the energy sector as a major driver of Nepal’s economic transformation.
A central priority of the strategy is to increase domestic electricity consumption by replacing LPG in household cooking, promoting electric vehicles in public and private transportation, and substituting electricity for fossil fuels used in industries. The framework also proposes making electricity tariffs more consumer-friendly, modernizing the distribution network through smart grid technology, increasing the proportion of reservoir-based hydropower projects to strengthen energy security, and expanding the national electricity transmission network throughout the country. These measures are intended to encourage greater use of domestically generated electricity and reduce dependence on imported energy sources.
The strategy further outlines a roadmap to export Nepal’s clean electricity to regional markets through cross-border transmission lines, with particular emphasis on supplying electricity during high-value evening peak-demand periods to maximize economic returns. It prioritizes private-sector participation in electricity trading, structural reforms at the Nepal Electricity Authority and the resolution of legal and regulatory challenges affecting electricity trade. The document also identifies potential risks associated with achieving its strategic objectives and proposes management measures to minimize their impact.
The high-level committee included representatives from the Ministry of Energy, Water Resources and Irrigation, Electricity Regulatory Commission, Department of Electricity Development and Nepal Electricity Authority. The ministry expressed confidence that successful implementation of the strategy could help reduce Nepal’s trade deficit, strengthen energy self-reliance and support the development of a green economy. However, the press release confirms the strategy’s formal submission to the minister rather than its final approval or implementation, and it does not disclose specific numerical targets for electricity consumption or exports.
