Nepal Energy Situation - Revision history

Hector Alfaro at 08:31, 28 August 2025

2025-08-28T08:31:04Z

Hector Alfaro: /* Introduction */

2025-08-28T08:26:50Z

Introduction

Ranisha: /* Institutionalizing Energy Efficiency */

2020-04-14T07:20:20Z

Institutionalizing Energy Efficiency

Ranisha at 11:41, 20 July 2018

2018-07-20T11:41:41Z

Ranisha at 19:11, 10 July 2018

2018-07-10T19:11:22Z

Shardul Tiware: /* Potential of Renewable Energy */

2016-05-03T05:35:31Z

Potential of Renewable Energy

Ranisha at 16:22, 9 December 2015

2015-12-09T16:22:20Z

Ranisha: /* Opportunities of Cogeneration */

2015-08-14T09:43:43Z

Opportunities of Cogeneration

Ranisha: /* Introduction */

2015-05-18T14:11:59Z

Introduction

Ranisha: /* Solar */

2015-04-13T13:24:50Z

Solar

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 = Introduction<br/> =
-[[ACCESS CSO - Nepal Energy Foundation|Nepal]] has no known major oil, gas, or coal reserves, and its position in the Himalayas makes it hard to reach remote and extremely remote communities. Consequently, most Nepali citizens have historically met their energy needs with biomass, human labor, imported kerosene, and/or traditional water-powered vertical axis mills, yet per capita energy consumption is thus “startlingly low” at one-third the average for Asia as a whole and less than one-fifth the worldwide average. In 2010, Nepal’s electrification rate was only 53 percent (leaving 12.5 million people without electricity) and 76 percent depended on fuelwood for cooking (meaning 20.22 million people placed stress on Nepali forests for their fuel needs). This situation has led some experts to call the country’s energy portfolio “medieval” in the fuels it uses and “precarious” in the load shedding that occurs throughout Kathmandu, due to an imbalance between electricity supply and demand. Nepal, however, has all it needs to escape these problems. Large markets for improved cookstoves, biogas digesters, and solar lanterns exist throughout the country. Independent scientific studies have calculated that the country could meet all if its own energy needs—indeed, even the potential needs of Nepal plus many of its neighbors—if it tapped its solar resources or its hydroelectric resources (and potentially its wind resources). These efforts could be complemented with attempts to strengthen energy efficiency planning, with significant potential for transmission upgrades and retrofits and more efficient lighting practices.<ref name="UNDP Country brief">_</ref>
+Nepal has no known major oil, gas, or coal reserves, and its position in the Himalayas makes it hard to reach remote and extremely remote communities. Consequently, most Nepali citizens have historically met their energy needs with biomass, human labor, imported kerosene, and/or traditional water-powered vertical axis mills, yet per capita energy consumption is thus “startlingly low” at one-third the average for Asia as a whole and less than one-fifth the worldwide average. In 2010, Nepal’s electrification rate was only 53 percent (leaving 12.5 million people without electricity) and 76 percent depended on fuelwood for cooking (meaning 20.22 million people placed stress on Nepali forests for their fuel needs). This situation has led some experts to call the country’s energy portfolio “medieval” in the fuels it uses and “precarious” in the load shedding that occurs throughout Kathmandu, due to an imbalance between electricity supply and demand. Nepal, however, has all it needs to escape these problems. Large markets for improved cookstoves, biogas digesters, and solar lanterns exist throughout the country. Independent scientific studies have calculated that the country could meet all if its own energy needs—indeed, even the potential needs of Nepal plus many of its neighbors—if it tapped its solar resources or its hydroelectric resources (and potentially its wind resources). These efforts could be complemented with attempts to strengthen energy efficiency planning, with significant potential for transmission upgrades and retrofits and more efficient lighting practices.<ref name="UNDP Country brief">_</ref>
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 = Introduction<br/> =
-Nepal has no known major oil, gas, or coal reserves, and its position in the Himalayas makes it hard to reach remote and extremely remote communities. Consequently, most Nepali citizens have historically met their energy needs with biomass, human labor, imported kerosene, and/or traditional water-powered vertical axis mills, yet per capita energy consumption is thus “startlingly low” at one-third the average for Asia as a whole and less than one-fifth the worldwide average. In 2010, Nepal’s electrification rate was only 53 percent (leaving 12.5 million people without electricity) and 76 percent depended on fuelwood for cooking (meaning 20.22 million people placed stress on Nepali forests for their fuel needs). This situation has led some experts to call the country’s energy portfolio “medieval” in the fuels it uses and “precarious” in the load shedding that occurs throughout Kathmandu, due to an imbalance between electricity supply and demand. Nepal, however, has all it needs to escape these problems. Large markets for improved cookstoves, biogas digesters, and solar lanterns exist throughout the country. Independent scientific studies have calculated that the country could meet all if its own energy needs—indeed, even the potential needs of Nepal plus many of its neighbors—if it tapped its solar resources or its hydroelectric resources (and potentially its wind resources). These efforts could be complemented with attempts to strengthen energy efficiency planning, with significant potential for transmission upgrades and retrofits and more efficient lighting practices.<ref name="UNDP Country brief">_</ref>
+[[ACCESS CSO - Nepal Energy Foundation|Nepal]] has no known major oil, gas, or coal reserves, and its position in the Himalayas makes it hard to reach remote and extremely remote communities. Consequently, most Nepali citizens have historically met their energy needs with biomass, human labor, imported kerosene, and/or traditional water-powered vertical axis mills, yet per capita energy consumption is thus “startlingly low” at one-third the average for Asia as a whole and less than one-fifth the worldwide average. In 2010, Nepal’s electrification rate was only 53 percent (leaving 12.5 million people without electricity) and 76 percent depended on fuelwood for cooking (meaning 20.22 million people placed stress on Nepali forests for their fuel needs). This situation has led some experts to call the country’s energy portfolio “medieval” in the fuels it uses and “precarious” in the load shedding that occurs throughout Kathmandu, due to an imbalance between electricity supply and demand. Nepal, however, has all it needs to escape these problems. Large markets for improved cookstoves, biogas digesters, and solar lanterns exist throughout the country. Independent scientific studies have calculated that the country could meet all if its own energy needs—indeed, even the potential needs of Nepal plus many of its neighbors—if it tapped its solar resources or its hydroelectric resources (and potentially its wind resources). These efforts could be complemented with attempts to strengthen energy efficiency planning, with significant potential for transmission upgrades and retrofits and more efficient lighting practices.<ref name="UNDP Country brief">_</ref>
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 *Liaise with the relevant government agencies and undertake consultation at relevant stages to develop ownership for the outputs of this assignment.
 *Review all relevant documents related to public and private expenditure for energy infrastructure, demand side management and energy efficiency for consistency. The documents may include, but not limited to :<br/>
 === Institutionalizing Energy Efficiency ===
 Nepal has been implementing energy efficiency measures for about two decades in different scales and at different levels, but as of today, does not have any nodal agency for addressing the issues of energy efficiency and leading the process of promoting and improving energy efficiency. The Ministry of Energy is currently working on the drafting of such a nodal government agency for energy efficiency that shall lead the initiation of a regulatory framework and facilitate the setting of energy efficiency promoting policies.
-<div>
+== Tariffs ==
 = References<br/> =
 <references />

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 {{CES Country|CES Country Name=Nepal
 |CES Country Capital=Kathmandu
-|CES Country Region South Asia =South Asia
+|CES Country Region South Asia=South Asia
 |CES Country Coordinates=27.7000° N, 85.3333° E
 }}
 = Introduction<br/> =
-Nepal has no known major oil, gas, or coal reserves, and its position in the Himalayas makes it hard to reach remote and extremely remote communities. Consequently, most Nepali citizens have historically met their energy needs with biomass, human labor, imported kerosene, and/or traditional water powered vertical axis mills, yet per capita energy consumption is thus “startlingly low” at one-third the average for Asia as a whole and less than one-fifth the worldwide average. In 2010, Nepal’s electrification rate was only 53 percent (leaving 12.5 million people without electricity) and 76 percent depended on fuelwood for cooking (meaning 20.22 million people placed stress on Nepali forests for their fuel needs). This situation has led some experts to call the country’s energy portfolio “medieval” in the fuels it uses and “precarious” in the load shedding that occurs throughout Kathmandu, due to an imbalance between electricity supply and demand. Nepal, however, has all it needs to escape these problems. Large markets for improved cookstoves, biogas digesters, and solar lanterns exist throughout the country. Independent scientific studies have calculated that the country could meet all if its own energy needs—indeed, even the potential needs of Nepal plus many of its neighbors—if it tapped its solar resources or its hydroelectric resources (and potentially its wind resources). These efforts could be complemented with attempts to strengthen energy efficiency planning, with significant potential for transmission upgrades and retrofits and more efficient lighting practices.<ref name="UNDP Country brief">_</ref>
+Nepal has no known major oil, gas, or coal reserves, and its position in the Himalayas makes it hard to reach remote and extremely remote communities. Consequently, most Nepali citizens have historically met their energy needs with biomass, human labor, imported kerosene, and/or traditional water-powered vertical axis mills, yet per capita energy consumption is thus “startlingly low” at one-third the average for Asia as a whole and less than one-fifth the worldwide average. In 2010, Nepal’s electrification rate was only 53 percent (leaving 12.5 million people without electricity) and 76 percent depended on fuelwood for cooking (meaning 20.22 million people placed stress on Nepali forests for their fuel needs). This situation has led some experts to call the country’s energy portfolio “medieval” in the fuels it uses and “precarious” in the load shedding that occurs throughout Kathmandu, due to an imbalance between electricity supply and demand. Nepal, however, has all it needs to escape these problems. Large markets for improved cookstoves, biogas digesters, and solar lanterns exist throughout the country. Independent scientific studies have calculated that the country could meet all if its own energy needs—indeed, even the potential needs of Nepal plus many of its neighbors—if it tapped its solar resources or its hydroelectric resources (and potentially its wind resources). These efforts could be complemented with attempts to strengthen energy efficiency planning, with significant potential for transmission upgrades and retrofits and more efficient lighting practices.<ref name="UNDP Country brief">_</ref>
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 == Energy Consumption ==
-Nepal's total energy consumption in 2010 was about 428 PJ (10,220 ktoe). New renewable energy sources (excluding large hydropower) such as biogas, micro hydro and solar energy contributed about 0.7% to the national balance in 2008/09 altogether. Although the share is still small, it has increased by 40 % since 2005.
+Nepal's total energy consumption in 2010 was about 428 PJ (10,220 ktoe). New renewable energy sources (excluding large hydropower) such as biogas, micro-hydro and solar energy contributed about 0.7% to the national balance in 2008/09 altogether. Although the share is still small, it has increased by 40 % since 2005.
 <ref name="UNDP Country brief">UNDP Sustainable Energy for All Country Brief Nepal, February 2013</ref>The use of primary energy sources is distributed as follows: <ref>Renewable Energy and Energy Efficiency Partnership (REEEP) Clean Energy Information Portal, Energy Profile Nepal (Vienna: REEEP Secretariat, 2012)</ref>
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 <div style="clear:both"></div><br/>
-Between 2001 and 2009, the total energy consumption was growing at a rate of 2.4 % per year in average. Although there is a considerable lack of efficiency in energy use, Nepal accounts for relatively low CO2 emissions compared to other countries in the region. The reason is the high proportion of renewable energy sources (biomass and hydro power) in primary energy consumption. 43.6 % (2009) of Nepalese population has access to electricity; 81.0 % (2012) depend on traditional fuels (wholly or partially).<ref name="UNDP Asia Pacific">_</ref>
+Between 2001 and 2009, the total energy consumption was growing at a rate of 2.4 % per year on average. Although there is a considerable lack of efficiency in energy use, Nepal accounts for relatively low CO2 emissions compared to other countries in the region. The reason is the high proportion of renewable energy sources (biomass and hydropower) in primary energy consumption. 43.6 % (2009) of Nepalese population has access to electricity; 81.0 % (2012) depend on traditional fuels (wholly or partially).<ref name="UNDP Asia Pacific">_</ref>
 Energy consumption in economic sectors (2010)<ref name="UNDP Country brief">_</ref>
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 <div style="clear:both"></div>82% of population use solid fuels (charcoal, coal, cropwaste, dung and wood) as cooking energy. In rural areas this percentage goes up to 90%, whereas only 33% of the urban dwellers use solid fuels for cooking. <ref>According to WHO 2010 http://apps.who.int/gho/data/?theme=country&vid=14500</ref><ref name="WHO 2007">WHO 2007</ref>
-There are several acitivites ongoing to improve the cooking situation in Nepal.<br/>
+There are several activities ongoing to improve the cooking situation in Nepal.<br/>
 <div>----
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 Biomass is by far the most important primary energy source in Nepal. Biomass comprises wood, agricultural residues and dung. 95 % of the biomass is predominantly and traditionally used for cooking and heating purposes in households.
-According to estimates by WECS the national biomass balance is in deficit: From 2000 to 2005 the deforestation rate was 2.1 % which was the highest rate in the region followed by Pakistan and Sri Lanka. The estimated wood consumption in 2005 was about 17 million tons. Over-exploitation of wood resources is declared to be approximately 10 million tons. This indicates that only about 40 % of the firewood comes from sustainable supply. However, there are clear regional differences. In the Terai region, only 19 % of consumption can re-grow sustainably, while this value reaches between 60 % and 80 % in the mountain regions. According to WECS, these figures are not certain and therefore only indicative.
+According to estimates by WECS the national biomass balance is in deficit: From 2000 to 2005 the deforestation rate was 2.1 % which was the highest rate in the region followed by Pakistan and Sri Lanka. The estimated wood consumption in 2005 was about 17 million tons. Over-exploitation of wood resources is declared to be approximately 10 million tons. This indicates that only about 40 % of the firewood comes from the sustainable supply. However, there are clear regional differences. In the Terai region, only 19 % of consumption can re-grow sustainably, while this value reaches between 60 % and 80 % in the mountain regions. According to WECS, these figures are not certain and therefore only indicative.
 Land Area Covered by Forest: 25.4%<br/>
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 Petroleum is the second largest energy fuel in Nepal after firewood and accounts for 8% of primary energy consumption in Nepal. All petroleum products are imported from India. The government has signed an agreement with the British company Cairns Energy PLC for petroleum exploitations but the exploitation works have not been initiated up to now.
-At the moment, the import of petroleum products is transacted exclusively between the “Nepal Oil Corporation” and the “Indian Oil Corporation”. 75 % of the imports are diesel, kerosene and gasoline. Due to the high energy demand in the country the dependence on petroleum imports is increasing. In 2006, Nepal had to spend 53 % of its foreign currency for importing petroleum products which is almost double than 2001. More than 62 % of the petroleum products are used in the transportation sector. Besides that, petroleum products constitute important energy sources for cooking purposes in households. The price rises during the last years made the import dependency more and more precarious for the economy of the country. The price instability also increased the vulnerability of households, especially of the urban poor, for which kerosene has become the principle source of cooking energy. The amount these households have to spend for kerosene has more than doubled from 2003 to 2009.
+At the moment, the import of petroleum products is transacted exclusively between the “Nepal Oil Corporation” and the “Indian Oil Corporation”. 75 % of the imports are diesel, kerosene and gasoline. Due to the high energy demand in the country the dependence on petroleum imports is increasing. In 2006, Nepal had to spend 53 % of its foreign currency for importing petroleum products which is almost double than 2001. More than 62 % of the petroleum products are used in the transportation sector. Besides that, petroleum products constitute important energy sources for cooking purposes in households. The price rises during the last years made the import dependency more and more precarious for the economy of the country. The price instability also increased the vulnerability of households, especially of the urban poor, for which kerosene has become the principal source of cooking energy. The amount these households have to spend on kerosene has more than doubled from 2003 to 2009.
-In recent years, subsidized fuels for cooking such as Liquefied Petroleum gas (LPG) have been utilized widely not only in urban but also in rural areas. But due to price rises in international oil markets, fossil fuels have become too costly. In 2010, the Nepal Oil Corporation reports that almost 40% of high speed diesel is used for electricity generation in captive gensets. As a result, diesel imports have therefore doubled from 2008 to 2010, creating opportunity costs of around NR 41 billion (US$ 490 million) annually.<ref name="UNDP Country brief">_</ref>
+In recent years, subsidized fuels for cooking such as Liquefied Petroleum Gas (LPG) have been utilized widely not only in urban but also in rural areas. But due to price rises in international oil markets, fossil fuels have become too costly. In 2010, the Nepal Oil Corporation reports that almost 40% of high-speed diesel is used for electricity generation in captive gensets. As a result, diesel imports have therefore doubled from 2008 to 2010, creating opportunity costs of around NR 41 billion (US$ 490 million) annually.<ref name="UNDP Country brief">_</ref>
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 {{CES Country|CES Country Name=Nepal
 |CES Country Capital=Kathmandu
-|CES Country Region=South Asia
+|CES Country Region South Asia =South Asia
 |CES Country Coordinates=27.7000° N, 85.3333° E
 }}
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 [[Nepal Energy Situation#toc|►Go To Top]]<br/>
 == Potential of Renewable Energy ==
 The potential is as follows (UNDP, 2012)<ref name="UNDP Asia Pacific">_</ref>:
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 <br/>
-<u>'''Nepalese hydropower potential in detail'''</u><ref>Surendra, K.C. et al. (2011). Current Status of Renewable Energy in Nepal: Opportunities and Challenges. Renewable and Sustainable Energy Reviews 15, pp. 4107-4117.</ref>:
+<u>'''Nepalese hydropower potential in detail'''</u><ref>Surendra, K.C. et al. (2011). Current Status of Renewable Energy in Nepal: Opportunities and Challenges. Renewable and Sustainable Energy Reviews 15, pp. 4107-4117.</ref>: This potential was not calculated by the cited paper. In fact it was done by Dr. Shrestha, as cited in that paper itself. This number is used bymany research papers. Could you please clarifiy why only this paper was cited and is it okay to do that?
 {| cellspacing="1" cellpadding="5" border="1" style="width: 500px"
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 | 42,133
 |}
 The theoretical overall potential is 83,290 MW and the technical feasible potential is 45,610 MW from which 42,133 MW is economically to realise.<br/>

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	Nepal has no known major oil, gas, or coal reserves, and its position in the Himalayas makes it hard to reach remote and extremely remote communities. Consequently, most Nepali citizens have historically met their energy needs with biomass, human labor, imported kerosene, and/or traditional water powered vertical axis mills, yet per capita energy consumption is thus “startlingly low” at one-third the average for Asia as a whole and less than one-fifth the worldwide average. In 2010, Nepal’s electrification rate was only 53 percent (leaving 12.5 million people without electricity) and 76 percent depended on fuelwood for cooking (meaning 20.22 million people placed stress on Nepali forests for their fuel needs). This situation has led some experts to call the country’s energy portfolio “medieval” in the fuels it uses and “precarious” in the load shedding that occurs throughout Kathmandu, due to an imbalance between electricity supply and demand. Nepal, however, has all it needs to escape these problems. Large markets for improved cookstoves, biogas digesters, and solar lanterns exist throughout the country. Independent scientific studies have calculated that the country could meet all if its own energy needs—indeed, even the potential needs of Nepal plus many of its neighbors—if it tapped its solar resources or its hydroelectric resources (and potentially its wind resources). These efforts could be complemented with attempts to strengthen energy efficiency planning, with significant potential for transmission upgrades and retrofits and more efficient lighting practices.<ref name="UNDP Country brief">_</ref>		Nepal has no known major oil, gas, or coal reserves, and its position in the Himalayas makes it hard to reach remote and extremely remote communities. Consequently, most Nepali citizens have historically met their energy needs with biomass, human labor, imported kerosene, and/or traditional water powered vertical axis mills, yet per capita energy consumption is thus “startlingly low” at one-third the average for Asia as a whole and less than one-fifth the worldwide average. In 2010, Nepal’s electrification rate was only 53 percent (leaving 12.5 million people without electricity) and 76 percent depended on fuelwood for cooking (meaning 20.22 million people placed stress on Nepali forests for their fuel needs). This situation has led some experts to call the country’s energy portfolio “medieval” in the fuels it uses and “precarious” in the load shedding that occurs throughout Kathmandu, due to an imbalance between electricity supply and demand. Nepal, however, has all it needs to escape these problems. Large markets for improved cookstoves, biogas digesters, and solar lanterns exist throughout the country. Independent scientific studies have calculated that the country could meet all if its own energy needs—indeed, even the potential needs of Nepal plus many of its neighbors—if it tapped its solar resources or its hydroelectric resources (and potentially its wind resources). These efforts could be complemented with attempts to strengthen energy efficiency planning, with significant potential for transmission upgrades and retrofits and more efficient lighting practices.<ref name="UNDP Country brief">_</ref>

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	The country also has a large market for solar water heaters, with 185,000 units installed and operating as of 2009.<ref name="UNDP Country brief">_</ref>		The country also has a large market for solar water heaters, with 185,000 units installed and operating as of 2009.<ref name="UNDP Country brief">_</ref>

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