page_title: Nepal
section_title: Energy
hierarchical_section_title: Nepal / Infrastructure / Energy
caption_attribution_description: English: the tailrace of the power station
context_page_description: Nepal, officially the Federal Democratic Republic of Nepal, is a country in South Asia. It is mainly in the Himalayas, but also includes parts of the Indo-Gangetic Plain. It is the 49th largest country by population and 93rd largest country by area. It is landlocked, and borders China in the north and India in the south, east and west, while Bangladesh is located within only 27 km of its southeastern tip and Bhutan is separated from it by the Indian state of Sikkim. Nepal has a diverse geography, including fertile plains, subalpine forested hills, and eight of the world's ten tallest mountains, including Mount Everest, the highest point on Earth. Kathmandu is the capital and the largest city. Nepal is a multiethnic country with Nepali as the official language.
  The name "Nepal" is first recorded in texts from the Vedic period of the Indian subcontinent, the era in ancient India when Hinduism was founded, the predominant religion of the country. In the middle of the first millennium BCE, Gautama Buddha, the founder of Buddhism, was born in Lumbini in southern Nepal. Parts of northern Nepal were intertwined with the culture of Tibet.
context_section_description: The bulk of energy in Nepal comes from biomass (80%) and imported fossil fuels (16%). Most of the final energy consumption goes to the residential sector (84%) followed by transport (7%) and industry (6%); the transport and industry sectors have been expanding rapidly in recent years. Except for some lignite deposits, Nepal has no known oil, gas or coal deposits. All commercial fossil fuels (mainly oil, LPG and coal) are imported, spending 129% of the country's total export revenue. Only about 1% of the energy need is fulfilled by electricity. The perennial nature of Nepali rivers and the steep gradient of the country's topography provide ideal conditions for the development of hydroelectric projects. Estimates put Nepal's economically feasible hydro-power potential at approximately 42,000 MW. However, Nepal has been able to exploit only about 1,100 MW. As most of it is generated from run-of-river (ROR) plants, the actual power produced is much lower in the dry winter months when peak demand can reach as high as 1,200 MW, and Nepal needs to import as much as 650 MW from India to meet the demands. Major hydro-power projects suffer delays and setbacks. Nepal's electrification rate (76%) is comparable to that of other countries in the region but there is significant disparity between the rural (72%) and urban (97%) areas.  The position of the power sector remains unsatisfactory because of high tariffs, high system losses, high generation costs, high overheads, over staffing, and lower domestic demand.
caption: Middle Marsyangdi Hydroelectric Dam. Nepal has significant potential to generate hydropower, which it plans to export across South Asia
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