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Nepal Nepal, officially the Federal Democratic Republic of Nepal, is a landlocked country in South Asia. It is mainly situated in the Himalayas, but also includes parts of the Indo-Gangetic Plain. It borders the Tibet Autonomous Region of China Ch ...
is a country enclosed by land, situated between
China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
and
India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...
. It has a total area of 148,006.67 square kilometers and a population of 29.16 million. It has a small economy, with a
GDP Gross domestic product (GDP) is a monetary measure of the total market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic performance o ...
of $42 billion in 2024, amounting to about 1% of
South Asia South Asia is the southern Subregion#Asia, subregion of Asia that is defined in both geographical and Ethnicity, ethnic-Culture, cultural terms. South Asia, with a population of 2.04 billion, contains a quarter (25%) of the world's populatio ...
and 0.04% of the World's GDP. Nepal's total energy consumption in 2019/2020 was 14.464 million tons of oil equivalent, increased from 10.29 Mtoe in 2012. Electricity consumption was 3.57 
TWh TWH or twh could refer to: * Tai Dón language, a language of Vietnam, Laos, and China * Tai Wo Hau station, Hong Kong; MTR station code * Tennessee Walking Horse, a breed of horse * Toronto Western Hospital, a hospital in Toronto, Canada * Tun ...
. The energy mix is dominated by traditional sources like
firewood Firewood is any wooden material that is gathered and used for fuel. Generally, firewood is not heavily processed, and is in some sort of firelog, recognizable log or branch form, compared to other forms of wood fuel like pellet fuel, pellets. ...
and agricultural residue (68.7%), most of this primary energy (about 80%) represents solid biofuels used in the residential sector (for heating, cooking etc.). Smaller shares of energy come from commercial sources like
petroleum Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring un ...
and
coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other Chemical element, elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal i ...
(28.2%) and renewable sources.AEPC, A. E. P. C. (2021). Annual Report. About 23% of the electricity is imported, with the rest almost completely supplied by
hydroelectricity Hydroelectricity, or hydroelectric power, is Electricity generation, electricity generated from hydropower (water power). Hydropower supplies 15% of the world's electricity, almost 4,210 TWh in 2023, which is more than all other Renewable energ ...
. Nepal also exports hydroelectricity to
India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...
in the
wet season The wet season (sometimes called the rainy season or monsoon season) is the time of year when most of a region's average annual rainfall occurs. Generally, the season lasts at least one month. The term ''green season'' is also sometimes used a ...
. Nepal has no known major oil,
gas Gas is a state of matter that has neither a fixed volume nor a fixed shape and is a compressible fluid. A ''pure gas'' is made up of individual atoms (e.g. a noble gas like neon) or molecules of either a single type of atom ( elements such as ...
, or
coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other Chemical element, elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal i ...
reserves, and its position in the
Himalayas The Himalayas, or Himalaya ( ), is a mountain range in Asia, separating the plains of the Indian subcontinent from the Tibetan Plateau. The range has some of the Earth's highest peaks, including the highest, Mount Everest. More than list of h ...
makes it hard to reach remote communities. Consequently, in the absence of the energy grid reaching remote locations, most Nepali citizens have historically met their energy needs with biomass, human labor, imported kerosene, and/or traditional vertical axis water mills. Energy consumption per capita is thus low, at one-third the average for Asia as a whole and less than one-fifth of the world average. The country has considerable hydroelectricity potential. The commercially viable potential is estimated at 44 GW from 66 hydropower sites. In 2010, the electrification rate was only 53% (leaving 12.5 million people without electricity) and 76% depended on wood for cooking. With about 1
toe Toes are the digits of the foot of a tetrapod. Animal species such as cats that walk on their toes are described as being ''digitigrade''. Humans, and other animals that walk on the soles of their feet, are described as being ''plantigrade''; ...
for every $1,000 of
GDP Gross domestic product (GDP) is a monetary measure of the total market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic performance o ...
, Nepal has the poorest
energy intensity Energy intensity is a Measurement, measure of the efficient energy use, energy inefficiency of an Economic system, economy. It is calculated as units of energy per unit of GDP (Gross Domestic Product) or some other measure of economic output. Hi ...
among all south Asian countries. The country has therefore very large energy efficiency potential.


Oil products

Petroleum Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring un ...
is the second largest energy fuel in Nepal after firewood and accounts for 11% of primary energy consumption in the country. All petroleum products are imported from
India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...
. At the moment, the import of petroleum products is transacted exclusively between the Nepal Oil Corporation and the
Indian Oil Corporation Indian Oil Corporation Limited (IOCL or IOC), trading as IndianOil, is an Indian multinational oil and gas company under the ownership of the Government of India and administrative control of the Ministry of Petroleum and Natural Gas. It is ...
. 75% of the imports are diesel,
kerosene Kerosene, or paraffin, is a combustibility, combustible hydrocarbon liquid which is derived from petroleum. It is widely used as a fuel in Aviation fuel, aviation as well as households. Its name derives from the Greek (''kērós'') meaning " ...
and
gasoline Gasoline ( North American English) or petrol ( Commonwealth English) is a petrochemical product characterized as a transparent, yellowish, and flammable liquid normally used as a fuel for spark-ignited internal combustion engines. When for ...
. Due to the high energy demand in the country, the dependence on petroleum imports is increasing. 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.


Biomass

Biomass Biomass is a term used in several contexts: in the context of ecology it means living organisms, and in the context of bioenergy it means matter from recently living (but now dead) organisms. In the latter context, there are variations in how ...
is by far the most important primary energy source in Nepal. Biomass comprises wood, agricultural residues and dung. One major problem with this is that burning these biomass substances for cooking is a common practice (87.3%) and thus exposes those living in the house to harmful air pollutants. Those who cook and live a substantial amount of time in the household (often women and children) are exposed to these pollutants and incur a high risk of acute respiratory infection. In addition, the burning of these biomass fuels often emits large quantities of greenhouse gases (GHGs) into the outside air. One study in a mountain village of Nepal showed that carbon emissions from traditional cooking methods were around 8 tons per person per year.


Biogas

The farming system in Nepal is heavily dependent on livestock, with at least 1.2 million households owning cattle and buffalo. The
biogas Biogas is a gaseous renewable energy source produced from raw materials such as agricultural waste, manure, municipal waste, plant material, sewage, green waste, Wastewater treatment, wastewater, and food waste. Biogas is produced by anaerobic ...
potential is therefore high and is estimated to be at least one million household-size plants, 57% located in the
Terai The Terai or Tarai is a lowland region in parts of southern Nepal and northern India that lies to the south of the outer foothills of the Himalayas, the Sivalik Hills and north of the Indo-Gangetic Plain. This lowland belt is characterised by ...
plains, 37% in the hills and 6% in remote hills. According to Nepal's '' Alternative Energy Promotion Centre'', as of July 2011, 241,920
biogas plants Anaerobic digestion is a sequence of processes by which microorganisms break down biodegradable material in the absence of oxygen. The process is used for industrial or domestic purposes to Waste management, manage waste or to produce fuels. Mu ...
were installed in more than 2,800 Village Development Committee areas and in all 75 Districts under their Biogas Support Program. Biogas uses anaerobic digestion, in which microorganisms break down organic matter into methane and carbon dioxide without oxygen.David Fulford, Small-scale rural biogas programmes a handbook (Rugby, England]: Rugby, England : Practical Action Publishing, 2015) A positive byproduct of biogas is that excess wastes produced by the system can be used as organic fertilizer. Biogas as an alternative energy source helps reduce dependence on low grade energy sources (biomass) which pose significant health risks and contribute to Greenhouse gas emissions, GHG emissions. The Nepalese have reported barriers to biogas implementation, including the large upfront capital costs, the inability of traditional biogas systems to operate in cold and mountainous climates, and the isolation of villages making installation logistics more difficult.


Renewable energy

Renewable energy in Nepal comes from hydropower, solar energy, biomass, biogas, and wind energy.


Solar

Nepal has favorable solar resources, receiving average solar radiation of 3.6 to 6.2 kW/m2/day. Sunshine duration is around three hundred days per year or 6.8 hours per day, equivalent to approximately 2100 hours annually. This indicates good potential for solar power generation across most regions in Nepal.Bhattarai, U., Maraseni, T., Apan, A., & Devkota, L. P. (2023). Rationalizing donations and subsidies: Energy ecosystem development for sustainable renewable energy transition in Nepal. Energy Policy, 177, 113570. Nepal's favorable solar resources have attracted interest in solar technology due to their relatively low upfront costs and fast installation. As a result, some solar applications like household lighting, water pumping, water treatment, domestic space, and water heating have been used in Nepal over the past few decades. Although the solar technology implementation in Nepal has been a small, isolated system, extensive integration is possible into the national grid. It might contribute significantly to fulfilling overall energy demand in Nepal. The Government of Nepal plans to develop a large-scale 250 MW solar project in the Tarai plains, including a 20 MW storage systemNEA/GoN, N. E. A. (2023). Energy Synopsis Report 2023.


Hydropower

Nepal Nepal, officially the Federal Democratic Republic of Nepal, is a landlocked country in South Asia. It is mainly situated in the Himalayas, but also includes parts of the Indo-Gangetic Plain. It borders the Tibet Autonomous Region of China Ch ...
has a highly mountainous landscape, with elevations rising from 60 meters above sea level to 8848 meters within an average north-south distance of less than 150km. An annual water discharge of 225 billion cubic meters flows out of the country, supplemented by high hydraulic heads.Authority, N. E. (2020). Nepal Electricity Authority a year in review—The fiscal year 2019/2020. In: Kathmandu. Nepal is often called the "water tower of
South Asia South Asia is the southern Subregion#Asia, subregion of Asia that is defined in both geographical and Ethnicity, ethnic-Culture, cultural terms. South Asia, with a population of 2.04 billion, contains a quarter (25%) of the world's populatio ...
" due to its vast water resources. The country's rugged topography, numerous rivers and streams with 6000 a total length of about 45,000 km, lends itself to
hydropower Hydropower (from Ancient Greek -, "water"), also known as water power or water energy, is the use of falling or fast-running water to Electricity generation, produce electricity or to power machines. This is achieved by energy transformation, ...
generation. Hydroelectric potential in Nepal is approximately 83000 Megawatts, of which 45,000MW are economically and technically viable. Around 86% of Nepal's population has access to grid
electricity Electricity is the set of physical phenomena associated with the presence and motion of matter possessing an electric charge. Electricity is related to magnetism, both being part of the phenomenon of electromagnetism, as described by Maxwel ...
, while 10% depend on off-grid distributed generation, mainly from
renewables Renewable energy (also called green energy) is energy made from renewable natural resources that are replenished on a human timescale. The most widely used renewable energy types are solar energy, wind power, and hydropower. Bioenergy and ...
; between 2018 and May 2022, Nepal doubled its installed capacity from 1,069 MW to 2,100 MW. Continuing capacity expansion can be used to address long-suppressed domestic demand, replace imported fossil fuels, and export to the South Asian region.PROJECT, U. U. N. (2022). Tariff-based competitive procurement of solar power in Nepal. D. C. LLP

/ref> The rivers of Nepal can be broadly classified into three types according to their origins: #The four central river systems of the country: Koshi, Gandaki, Karnali, and Mahakali. All of them originate from
glaciers A glacier (; or ) is a persistent body of dense ice, a form of rock, that is constantly moving downhill under its own weight. A glacier forms where the accumulation of snow exceeds its ablation over many years, often centuries. It acquires ...
and snow-fed lakes. #Rivers originating from the Mahabharat range, including Babai, West Rapti, Bagmati, Kamala, Kankai, and Mechi. #Streams and rivulets originating from the Chure hills; these rivers cause flash floods during monsoon rains but have very little or no flow during the dry season. At present, about 10% of the total rainfall in Nepal falls as
snow Snow consists of individual ice crystals that grow while suspended in the atmosphere—usually within clouds—and then fall, accumulating on the ground where they undergo further changes. It consists of frozen crystalline water througho ...
. Around 23% of the country's land area is above the enduring snow line at 5000 meters.
Glaciers A glacier (; or ) is a persistent body of dense ice, a form of rock, that is constantly moving downhill under its own weight. A glacier forms where the accumulation of snow exceeds its ablation over many years, often centuries. It acquires ...
cover about 3.6 percent of Nepal's total area. Nepal has 3,252
glaciers A glacier (; or ) is a persistent body of dense ice, a form of rock, that is constantly moving downhill under its own weight. A glacier forms where the accumulation of snow exceeds its ablation over many years, often centuries. It acquires ...
spanning an area of 5,323 square kilometers, with an ice reserve of around 481 cubic kilometers. The country also has 2,323
glacial lakes A glacial lake is a body of water with origins from glacier activity. They are formed when a glacier erodes the land and then melts, filling the depression created by the glacier. Formation Near the end of the last glacial period, roughly 10,0 ...
encompassing 75 square kilometers. Small-scale
hydroelectricity Hydroelectricity, or hydroelectric power, is Electricity generation, electricity generated from hydropower (water power). Hydropower supplies 15% of the world's electricity, almost 4,210 TWh in 2023, which is more than all other Renewable energ ...
generation in Nepal dates back to the 1960s, when the government promoted subsidies for remote installations. The semi-government Nepal Electricity Authority is responsible for significant
hydropower Hydropower (from Ancient Greek -, "water"), also known as water power or water energy, is the use of falling or fast-running water to Electricity generation, produce electricity or to power machines. This is achieved by energy transformation, ...
projects. The Alternative Energy Promotion Centre (AEPC) was established as an autonomous institution in 1996 to promote large-scale sustainable
renewable energy Renewable energy (also called green energy) is energy made from renewable resource, renewable natural resources that are replenished on a human lifetime, human timescale. The most widely used renewable energy types are solar energy, wind pow ...
use under the Ninth National Plan. It has been mandated to advance various renewable energy technologies in Nepal. The AEPC is the government agency responsible for promoting renewable energy technologies. It provides subsidies and technical assistance to community and regional government offices. The Nepal Micro-Hydro Development Association represents around 60 microhydropower companies in the country.Butchers, J., Williamson, S., Booker, J., Tran, A., Karki, P. B., & Gautam, B. (2020). Understanding the sustainable operation of micro-hydropower: A field study in Nepal. Energy for Sustainable Development, 57, 12-21. It advocates for these companies and regulates training for plant operators and managers. Locally, district coordination committees represent communities within a district. These committees usually provide financial support to renewable energy projects in their districts. Around 3300 micro-hydropower plants in Nepal are owned and operated by local communities. Most of these have been funded through AEPC subsidies. These projects are an option for increasing energy access in off-grid areas, especially in remote and rural areas, which supports the sustainable livelihood of people.
Micro hydro Micro hydro is a type of hydroelectric power that typically produces from 5 kW to 100 kW of electricity using the natural flow of water. Installations below 5 kW are called pico hydro. These installations can provide power to an ...
power benefits rural communities through increased income, reduced
fossil fuel A fossil fuel is a flammable carbon compound- or hydrocarbon-containing material formed naturally in the Earth's crust from the buried remains of prehistoric organisms (animals, plants or microplanktons), a process that occurs within geolog ...
reliance, and benefits to health and education. However, some projects face issues like poor maintenance, unequal benefit distribution, and insufficient income – reducing
sustainability Sustainability is a social goal for people to co-exist on Earth over a long period of time. Definitions of this term are disputed and have varied with literature, context, and time. Sustainability usually has three dimensions (or pillars): env ...
. The government of Nepal (GoN) has identified the development of
hydropower Hydropower (from Ancient Greek -, "water"), also known as water power or water energy, is the use of falling or fast-running water to Electricity generation, produce electricity or to power machines. This is achieved by energy transformation, ...
resources as the path to the country's economic development in the long term. Consequently, GoN has set a target to develop 15 GW in the next ten years and around 40 GW by 2040, which GoN plans to use mainly for domestic load demand and export to neighboring countries. GoN, government-owned entities, Independent Power Producers (IPPs), and internationally funded power producers are actively involved in the hydropower development in Nepal. However, developing a robust and reliable national
transmission Transmission or transmit may refer to: Science and technology * Power transmission ** Electric power transmission ** Transmission (mechanical device), technology that allows controlled application of power *** Automatic transmission *** Manual tra ...
network is essential to properly transmit, distribute, and export power generated from these hydroelectric plants (NEA/GoN, 2023). At present much attention and investment have been focused mainly on the development of hydroelectricity generation plants. Planned transmission system development has been a less discussed topic, resulting in an ad hoc approach to transmission system development. The Nepal Electricity Authority(NEA) is Nepal's sole operator and distributor of electricity. In 2022, NEA achieved a total installed capacity of 626.7 megawatts, generating 3,242.5 gigawatt-hours of electricity. There was a significant 14.61% increase in generation compared to the previous year. The peak annual national demand for electricity has reached 1,748 MW. During fiscal year 2078/79, Nepal exported 493.6 GWh of electrical energy. The only operating
thermal power A thermal power station, also known as a thermal power plant, is a type of power station in which the heat energy generated from various fuel sources (e.g., coal, natural gas, nuclear fuel, etc.) is converted to electrical energy. The heat ...
plant is the Hetauda diesel plant, with 14.41 MW capacity and generating 32.51 MWh of energy per year. There are currently eight active projects under development totaling 943.1 MW capacity, and 11 planned and proposed projects could add a further 3,450 MW. Independent Power Produces (IPP) also play a significant role. As of December 2022, IPP-installed projects have 17,09 MW capacity. There are 134 ongoing IPP projects with financial closure totaling 3,253.3 MW capacity. Additionally, there are 89 IPP projects under development without financial closure but with a potential capacity of 1,857.4 MW. The electrification rate in Nepal has notably improved in recent years, with access rising from 93% in 2020/21 to 94 % in 2021/22. The government aims to achieve 100% electricity access nationwide by 2024. In the wet season, Nepal exports its surplus hydroelectricity to India through Indian Energy Exchange. As of 8 June 2022, four of Nepal's hydroelectricity projects export a total of 234 MW of electricity to the Indian market.


Wind

Nepal has substantial
wind energy Wind power is the use of wind energy to generate useful work. Historically, wind power was used by sails, windmills and windpumps, but today it is mostly used to generate electricity. This article deals only with wind power for electricity ...
potential, with estimates of over 3000 MW total capacity. Around 448 MW is commercially viable for
electricity generation Electricity generation is the process of generating electric power from sources of primary energy. For electric utility, utilities in the electric power industry, it is the stage prior to its Electricity delivery, delivery (Electric power transm ...
. Shrestha, R. Y. (2009). Small-scale wind energy market and institutional model for Nepal. Wind Engineering, 33(2), 109-121. Nepal's wind energy potential is concentrated in the high mountains and mid-hills regions, with favorable sites over 3,300 meters above sea level. Despite low population density and arduous geographical conditions, Khumbu Region, Kagbeni, Chusang, Thakmarpha, and Khanjiroba are some of the high-potential mountain areas for wind energy. Bhattarai, U., Maraseni, T., Apan, A., & Devkota, L. P. (2023). Rationalizing donations and subsidies: Energy ecosystem development for sustainable renewable energy transition in Nepal. Energy Policy, 177, 113570. Despite having immense potential, there has yet to be much progress in developing wind energy in Nepal. The two 10 kW wind turbines installed by the Nepal Electricity Authority in Kagbeni, Mustang, in 1989 were destroyed within three months. Ghimire, M., & Poudel, R. C. (2010). Wind energy resource assessment and feasibility study of the wind farm in Kaligandaki riverbank of Mustang district. Nepal Journal of Science and Technology, 11, 159-166. During 2018, there were only 113.6 kW of total installed wind capacity, 65 kW from AEPC, 3.5 kW from Practical Action, and 45.1 kW from the private sector. Despite some small initiatives, Nepal has abundant wind energy resources that are primarily unutilized because of inadequate policies and insufficient Investment in the sector.AEPC, A. E. P. C. (2021). Annual Report.


Coal

The coal production in the nation was 7250.1 tons in FY 2076/77 BS. This value increased to 11303.9 tons in FY 2077/78 and dropped in FY 2078/79 to 6927.04 tons. A total of 9 licenses were issued in each fiscal year 2076/77 to 2078/79 for coal production. The leading consumer of coal in Nepal is the brick-manufacturing industry.


Other

In addition to traditional energy sources, Nepal has other potential resources, including municipal solid waste, industrial by-products like bagasse from sugar production, secondary wood sources such as logging residue and sawmill waste, furniture production scraps, and agricultural crop and bush residues. Hydrogen fuel is another potential energy source where research is ongoing. In conclusion, Nepal's renewable energy potential in hydropower, wind, and solar energy is extensive. High snow-covered mountains, glacial rivers, and high solar radiation show its higher potential. However, investment in such sources has been limited. So Nepal must focus on attracting investment, addressing infrastructure challenges, implementing supportive policies, and engaging with the local community. The transition to
renewable energy Renewable energy (also called green energy) is energy made from renewable resource, renewable natural resources that are replenished on a human lifetime, human timescale. The most widely used renewable energy types are solar energy, wind pow ...
is not only a
sustainable energy Energy system, Energy is sustainability, sustainable if it "meets the needs of the present without compromising the ability of future generations to meet their own needs." Definitions of sustainable energy usually look at its effects on the e ...
choice but also an opportunity for Nepal to enhance energy access, reduce its carbon footprint, and contribute to regional energy security.


See also

* Renewable energy in Nepal * Nepal Electricity Authority


References

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