Kathmandu - Nepal has made remarkable progress in expanding clean energy access, with over 95 percent of households now connected to electricity. The country’s energy mix is approximately 98 percent renewable, largely driven by hydropower, positioning Nepal as one of the leading nations in South Asia in terms of clean energy reliance.
According to the Nepal Electricity Authority, Nepal currently has more than 1,142 MW of installed hydropower capacity generated from over 88 operational plants. In addition, projects exceeding 5,000 MW are under construction, signaling a significant boost in future domestic supply and cross-border electricity trade potential.
Hydropower Driving the Energy Transition
Hydropower remains the backbone of Nepal’s electricity sector. With vast river systems flowing from the Himalayas, the country continues to harness its natural resources to expand generation capacity while maintaining a low-carbon profile.
Micro-Hydro Strengthening Rural Electrification
In rural and remote regions, more than 11,300 micro-hydro projects-ranging from 32 kW to 345 kW-are supplying electricity to communities beyond the national grid. These decentralized systems have played a critical role in improving livelihoods, supporting small enterprises, and enhancing access to education and healthcare services.
Rapid Growth in Solar Energy
Solar energy is expanding rapidly across the country. Thousands of households have adopted rooftop solar systems, with more than 4,142 solar systems and over 12,686 rooftop units installed in recent reporting periods.
Large-scale grid-connected solar projects are also emerging. The 10 MW Dhalkebar Solar Power Plant is now operational, marking a significant milestone in diversifying Nepal’s renewable energy portfolio beyond hydropower.
Clean Cooking and Emission Reductions
Nepal is also advancing clean cooking initiatives. More than 4,300 new household biogas plants have been installed, alongside over 23,000 electric cookstoves distributed in recent years. These efforts contribute to reducing indoor air pollution and lowering dependency on traditional biomass fuels.
Through more than eight carbon-related projects, Nepal has reportedly reduced approximately 6.68 million metric tons of CO₂ emissions, reinforcing its commitment to climate action.
Toward Carbon Neutrality by 2045
Nepal has set an ambitious target to achieve carbon neutrality by 2045. Continued investment in hydropower, solar energy, decentralized systems, and clean cooking technologies will be central to meeting this goal.
Energy experts emphasize that while generation capacity is expanding rapidly, strengthening transmission infrastructure, improving grid stability, investing in storage solutions, and enhancing regional energy cooperation will be essential for long-term sustainability.
Nepal’s clean energy transition presents a compelling model for developing countries seeking to balance economic growth with environmental responsibility.
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