Energy Sector Synopsis Report, 2022

Government of Nepal
Water and Energy Commission Secretariat

Singha Durbar, Kathmandu, Nepal
Energy Sector Synopsis Report 2021/2022

WECS 03/077/078
Prepared by
Vision Plus Design and Services Pvt. Ltd
Madhyapur Thimi, Bagmati Province, Nepal
June 2022
NEPAL ENERGY SECTOR SYNOPSIS
REPORT - 2022
Energy Resource and Consumption in Nepal in 2019, 2020, 2021
Water and Energy Commission Secretariat

Singhadurbar, Kathmandu, Nepal
2022
Nepal Energy Sector Synopsis Report - 2022
Contents
Contents..................................................................................................................................... i
List of Figures ......................................................................................................................... iv
List of Tables ........................................................................................................................... vi
Abbreviations ....................................................................................................................... viii
Executive summary ................................................................................................................. ix
1 Introduction ...................................................................................................................... 1
1.1 Country Profile .......................................................................................................... 2
1.2 Demography .............................................................................................................. 3
1.3 Economy .................................................................................................................... 3
1.4 Energy and related policies........................................................................................ 6
1.5 SAARC energy outlook ........................................................................................... 11
2 Methodology .................................................................................................................. 14
2.1 Energy supply potential estimation ......................................................................... 15
Traditional Energy ........................................................................................... 15
Commercial Fuels ............................................................................................ 16
Modern Renewables ......................................................................................... 17
2.2 Sectoral energy demand calculation ........................................................................ 19
2.3 Preparation of data acquisition formats ................................................................... 19
2.4 Data collection ......................................................................................................... 19
2.5 Data analysis ............................................................................................................ 20
2.6 Reporting outline ..................................................................................................... 21
3 Energy Supply in Nepal ................................................................................................. 22
3.1 Energy supply system .............................................................................................. 22
3.2 Conventional Energy Resources .............................................................................. 22
Forest resources ................................................................................................ 22
Agricultural Residue ........................................................................................ 30
Animal waste .................................................................................................... 32
Other Energy Sources....................................................................................... 34
3.3 Modern Renewable Energy Resources and Technologies ...................................... 34
Solar ................................................................................................................. 34
Micro and Pico hydro ....................................................................................... 37
Biogas ............................................................................................................... 39
i
Wind ................................................................................................................. 40
Organic Municipal Waste................................................................................. 42
3.4 Commercial Energy Resources ............................................................................... 42
Electricity ......................................................................................................... 42
Coal .................................................................................................................. 45
Petroleum ......................................................................................................... 47
4 Energy Consumption in Nepal ....................................................................................... 49
4.1 Energy Consumption by Fuel Types ....................................................................... 49
Energy Consumption in 2021........................................................................... 49
Energy consumption in 2019 and 2020 ............................................................ 50
4.2 Energy Consumption by Sectors ............................................................................. 51
Sectoral energy consumption in 2021 .............................................................. 51
Sectoral energy consumption in 2019 and 2020 .............................................. 51
Agriculture ....................................................................................................... 52
Commercial ...................................................................................................... 53
Industrial........................................................................................................... 54
Residential ........................................................................................................ 55
Transport .......................................................................................................... 56
Construction and Mining.................................................................................. 57
5 Energy Indicators ........................................................................................................... 59
6 Energy Balance .............................................................................................................. 61
7 Energy Pricing ................................................................................................................ 65
7.1 Electricity Pricing .................................................................................................... 66
8 Provincial Energy Synopsis ........................................................................................... 68
8.1 Province 1 ................................................................................................................ 68
Energy Supply in Province 1 ............................................................................ 68
Energy Consumption in Province 1 ................................................................. 71
8.2 Madhesh Province ................................................................................................... 76
Energy supply in Madhesh Province ................................................................ 76
Energy Consumption in Madhesh Province ..................................................... 78
9 Conclusions .................................................................................................................... 82
References .............................................................................................................................. 84
ANNEX .................................................................................................................................. 87
ii
Annex I. GDP Structure ..................................................................................................... 88

Annex II. Forest Data ......................................................................................................... 89
Annex III. Agriculture Data ............................................................................................... 90
Annex IV. Animal waste Data ........................................................................................... 92
Annex V. Solar PV systems and Projects .......................................................................... 94
Annex VI. Waste Data ....................................................................................................... 97
Annex VII. Hydropower Plants .......................................................................................... 99
Annex VIII. Petroleum Data ............................................................................................ 101
Annex IX. Energy Consumption ...................................................................................... 103
Annex X. Sectoral Energy Consumption ......................................................................... 104
Annex XI. Energy conversion table ................................................................................. 107
iii
List of Figures
Figure 1-1 Provincial Population, Household number, and Household size in 2021 ............................. 3
Figure 1-2 GDP growth rate (MoF 2022) ............................................................................................... 4
Figure 1-3 GVA structure by sectoral groups ......................................................................................... 4
Figure 1-4 GVA growth rates by sectoral groups ................................................................................... 5
Figure 1-5 Province-wise contribution to GDP (CBS, 2022) ................................................................ 5
Figure 1-6 Provincial mix of establishments in 2018 ............................................................................. 6
Figure 1-7 Share of Establishments by industrial divisions .................................................................... 6
Figure 2-1 Methodological framework ................................................................................................. 14
Figure 3-1 Energy resources system currently being adopted in Nepal................................................ 22
Figure 3-2 Land cover map of Nepal .................................................................................................... 23
Figure 3-3 Proportion of Land Cover in each Physiographic Region ................................................... 24
Figure 3-4 Community Forest Coverage in different Provinces .......................................................... 25
Figure 3-5 Proportion of Sustainable Annual Wood Yields in Provinces ............................................ 27
Figure 3-6 Proportion of different Provinces with different Physiographic Regions in Sustainable
Annual Wood Yields............................................................................................................................. 28
Figure 3-7 Community Forest Contribution to Sustainable Annual Wood Yields ............................... 29
Figure 3-8 Fuelwood sales trend ........................................................................................................... 29
Figure 3-9 Status of agricultural residue production............................................................................. 31
Figure 3-10 Energy potential from of agricultural residue ................................................................... 32
Figure 3-11 Status of animal waste production .................................................................................... 33
Figure 3-12 Energy potential from animal waste (dry dung) ................................................................ 33
Figure 3-13 Sugarcane and bagasse production .................................................................................... 34
Figure 3-14 Global Horizontal Irradiation - long-term average of daily and yearly totals. Source:
SolarGIS................................................................................................................................................ 35
Figure 3-15 Installation of solar home systems until 2021 ................................................................... 35
Figure 3-16 Installation of Institutional Solar PV Systems until 2021 ................................................. 36
Figure 3-17 Installation of solar drinking water and irrigation systems until 2021 .............................. 36
Figure 3-18 Installation of micro-hydro systems until 2021 ................................................................. 38
Figure 3-19 Installation of IWM until 2021.......................................................................................... 38
Figure 3-20 Installation of domestic biogas plants until 2021 .............................................................. 40
Figure 3-21 Installation of large biogas plants until 2021 .................................................................... 40
Figure 3-22 Mean annual generalized wind power density for Nepal. ................................................. 41
Figure 3-23 Provincial electrification status (MoF, 2021) ................................................................... 45
Figure 3-24 Petroleum products import in different FY in different provinces .................................... 48
Figure 3-25 Petroleum products Sales in different FY in different provinces ...................................... 48
iv
Figure 4-1 Energy Consumption Categorization .................................................................................. 49

Figure 4-2 Energy consumption in 2019, 2020, and 2021 .................................................................... 51
Figure 4-3 Energy consumption by sectors in 2021.............................................................................. 51
Figure 4-4 Sectoral energy in 2019, 2020 and 2021 ............................................................................. 52
Figure 4-5 Energy consumption by fuel types agricultural sector in 2021 ........................................... 52
Figure 4-6 Energy consumption by fuel group in Agricultural sector in 2019, 2020 and 2021 ........... 53
Figure 4-7 Energy consumption by fuel types Commercial sector in 2021 .......................................... 53
Figure 4-8 Energy consumption by fuel group in Commercial sector in 2019, 2020 and 2021 ........... 54
Figure 4-9 Energy consumption by fuel types Industrial sector in 2021 .............................................. 54
Figure 4-10 Energy consumption by fuel group in Industrial sector in 2019, 2020 and 2021 ............. 55
Figure 4-11 Energy consumption by fuel types Residential sector in 2021.......................................... 55
Figure 4-12 Energy consumption by fuel group in Residential sector in 2019, 2020 and 2021 ........... 56
Figure 4-13 Energy consumption by fuel types Transport sector in 2021 ............................................ 56
Figure 4-14 Energy consumption by fuel group in Transport sector in 2019, 2020 and 2021 ............. 57
Figure 4-15 Energy consumption by fuel types Construction and Mining sector in 2021 ................... 57
Figure 4-16 Energy consumption in Construction and Mining sector in 2019, 2020 and 2021 ........... 58
Figure 8-1Electricity sales in Province 1 in 2075 (NEA, 2019) ........................................................... 70
Figure 8-2: Energy Consumption Share in Province 1 by Sectors........................................................ 72
Figure 8-3: Energy Consumption Share in Province 1 by Energy Types ............................................. 72
Figure 8-4: Energy Consumption Share in Province 1 by physiological region ................................... 73
Figure 8-5: Total final energy demand in Province 1 ........................................................................... 75
Figure 8-6: Electricity Consumption in Madhesh Province in 2075 (NEA, 2019) ............................... 77
Figure 8-7: Energy Consumption Share in Madhesh Province by Sectors ........................................... 79
Figure 8-8: Energy Consumption Share in Madhesh Province by Energy Types ................................ 79
Figure 8-9 Total final energy demand in Madhesh Province ................................................................ 81
v
List of Tables
Table 1-1 Key Plans and Policies in Energy Sector ................................................................................ 9
Table 2-1 Residue to Product ratio and Net calorific value .................................................................. 16
Table 2-2 Dry dung yield from livestock by topographic region.......................................................... 16
Table 3-1 Forest areas by province ....................................................................................................... 23
Table 3-2 Forest Cover (ha) inside and outside the Protected Area by Physiographic Region ............ 24
Table 3-3 Time Series Forest and Shrub Land Area of the Country ................................................... 25
Table 3-4 Total above-ground air-dried and total above-ground oven-dried Biomass ......................... 26
Table 3-5 Sustainable Fuelwood Supply and Energy in 2014 ............................................................. 26
Table 3-6 Sustainable Wood and Energy Supply in different Provinces of various Physiographic
Regions ................................................................................................................................................. 27
Table 3-7 Annual Sustainable Fuelwood Supply and Energy by the Community Forest in 2014........ 28
Table 3-8 Supply of forest products by each Province in 2075/2076 ................................................... 30
Table 3-9 Status of Fuelwood Productions and Sales in Fiscal Year 2073/74 by authority ................. 30
Table 3-10 Sales of fuelwood from community forests and private forests ......................................... 30
Table 3-11 Installation of solar drinking water and irrigation systems until 2021 ............................... 37
Table 3-12 Theoretical potential of hydropower in Nepal ................................................................... 43
Table 3-13 Distribution of gross hydropower potential among different provinces based on 3 major river
basin ...................................................................................................................................................... 43
Table 3-14 Total hydropower plant installations .................................................................................. 44
Table 3-15 Summary of Coal Reserve in different Parts of the Country .............................................. 45
Table 3-16 Coal Production and Import in Nepal in tons ..................................................................... 46
Table 3-17 NOC Storage Capacity in different Locations of the Country............................................ 47
Table 4-1 Energy Consumption in 2021 ............................................................................................... 50
Table 5-1 Final energy intensities ......................................................................................................... 59
Table 5-2 Consumer indices for electricity for NEA distributed electricity ......................................... 60
Table 5-3 Energy share with respect to national consumption ............................................................. 60
Table 6-1 Energy Balance for year 2021 .............................................................................................. 62
Table 7-1 Energy pricing for cooking ................................................................................................... 65
Table 7-2 Recent Trend of Petroleum Fuel Price.................................................................................. 66
Table 8-1Forest Area and Actual Fuelwood Produced ......................................................................... 68
Table 8-2Petroleum sales in 2075-76 in Province 1 ............................................................................. 69
Table 8-3Number of Modern Renewable Technologies Installed in Province 1 (AEPC, 2019) .......... 71
Table 8-4: Energy Consumption in Province 1 by Sector and Fuel Type (TJ) ..................................... 74
vi
Table 8-5Forest Area and Actual Fuelwood Produced ......................................................................... 76

Table 8-6Petroleum sales in 2075-76 in Madhesh Province ................................................................. 77
Table 8-7Petroleum Number of Modern Renewable Technologies Installed in Madhesh Province
(AEPC, 2019)........................................................................................................................................ 78
Table 8-8: Energy Consumption in Madhesh Province by Sector and Fuel Type (TJ) ........................ 80
vii
Abbreviations
AEPC Alternative Energy Promotion Centre
CAGR Cumulative Annual Growth Rate
CBS Central Bureau Of Statistics
Cu.m Cubic Meter
DOED Department of Electricity Development
FY Fiscal Year
GDP Gross Domestic Product
GHG Greenhouse Gases
GJ Giga Joule
GVA Gross Value Added
GW Gigawatt
HH household
ICS Improved Cooking Stove
IPP Independent Power Producers
ISPS Institutional Solar Photovoltaic Systems
IWM Improved Water Mill
Kg kilogram
kL kiloliter
kW Kilowatt
kWh kilowatt hour
kWp Kilowatt peak
LCEDS Low Carbon Economic Development Strategies
LED Light Emitting Diode
LNG Liquefied Natural Gas
LPG Liquefied Petroleum Gas
MHP Micro Hydro Project
MJ Mega Joule
MoALD Ministry of Agriculture and Livestock Development
MTOE Million Tons of Oil Equivalent
MW Megawatt
MW Megawatt
NEA Nepal Electricity Authority
NOC Nepal Oil Corporation
O&M Operation and Maintenance
PA Protected Area
PJ Petajoule
PVPS Photovoltaic Pumping System
RETs Renewable Energy Technologies
RPR Residue-to-product ratio
SDG Sustainable Development Goals
SHS Solar Home System
TOE Tons of Oil Equivalent
TWh terawatt hour
WECS Water and Energy Commission Secretariat
WPD Wind Power Density
viii
Executive summary
Energy consumption information is one of the significant indicators of the country’s development
status. The energy-related database provides crucial insights for developing specific starategies,
provincial targets and integrating them to reach the national goal. Thus, a well-organized energy
database is a basis for policy formulation and sustainable energy planning. In this context, this Energy
Sector Synopsis Report provides status of energy sector in Nepal.
The overall energy consumption of Nepal is largely dominated by the use of biomass a non-
commercial energy form in case of Nepal. Energy sources are still dominated by traditional sources
(fuelwood, agri-residue, and animal waste). However, the shift to commercial energy (coal, petroleum
products, and electricity) is evident and the renewable energy sources are also increasing. Consumption
of electricity has also increased at good pace lately.
The supply and consumption situations of energy by fuel types and economic sectors were prepared
for FY 2075/76, 2076/77, and 2077/78 along with the energy balance that gives a snapshot of the
energy situation in Nepal. The six major energy-consuming economic sectors include residential,
commercial, industry, transport, agriculture, and construction & mining. The energy types are classified
under renewables and non-renewables. The renewables are further divided into conventional resources
that include fuelwood, agri-residue, animal waste, and other biomass) and new renewables that include
electricity generation systems from hydro, solar, and wind. Non-renewables include coal and
petroleum products. The energy supply and consumption data were collected from different energy
institutions such as the Ministry of Forest and Environment (MoFE), Ministry of Agriculture and
Livestock Development (MoALD), Department of Forest and Soil Conservation (DoFSC), Department
of Electricity Development (DoED), Department of Custom (DoC), Alternative Energy Promotion
Centre (AEPC), Nepal Oil Corporation (NOC), Nepal Electricity Authority (NEA), etc.
Supply Situation
Traditional Resources
One of the primary energy resources used in Nepal is t h e forestry sector. According to the study,
Forest covers 40.36% of the total area of Nepal. The Bagmati Province of the country has the highest
total forest area (17.55%) while Madhesh Province has the lowest forest coverage area (4.37%).
Similarly, out of the total forest, 37.80% lies in the Middle Mountain physiographic region, 32.25% in
the High Mountains and High Himal, 23.04% in Churia, and 6.90% in the Terai indicating that majority
of the forest areas are found in Middle Mountain and High Mountain. The annual energy potential of
the sustainable fuelwood is estimated to be 203 PJ with Province 1 contributing the highest sustainable
annual fuelwood yield (25.42%).
Based on the data and calculations, the country has a total of 2.98 million ha of accessible forest area
which accounts for 50.05% of the country’s forest. The sustainable fuelwood supply in the country is
estimated to be 12.15 million tons in 2014 as per DFRS. The Province wise supply potential is as shown
in Figure 1.
ix
Figure 1: Proportion of Sustainable Annual Wood Yields in Provinces
Another traditional biomass used as an energy source is agri-residue. As more than 60% population is
directly involved in agriculture, the agri-residue production mainly from cereal crops also forms one of
the major sources of energy mostly in rural areas. Based on the crop production, the potential agri-
residue for 2019 was estimated to be 23 million tons which grew at the rate of 4% to 26 million tons in
2021. The potential energy supply from agri-residue was estimated at 406 million GJ, 416 million GJ,
and 442 million GJ in 2019, 2020, and 2021 respectively.
Dry dung is another traditional biomass used as an energy source mainly in rural areas. The dung yield
from the livestock was estimated to be 6.8 million tons in 2019. This potential grew at only 0.35% in
2020 (6.84 million tons). However, in 2021, with the effect of the pandemic being lower, it is
approximated to be about 6.9 million tons in the year 2021 at a cumulative growth rate of 1.12%. The
energy potential from the dry dung was about 101.6 million GJ in the year 2019, which grew to 102
million GJ in 2020 and 103 million GJ in 2021.
Modern Renewables
According to the Solar and Wind Energy Resource Assessment(SWERA) by the Alternative Energy
Promotion Centre (AEPC), the commercial potential on-grid solar PV system in Nepal is estimated to
be 2,100MW. To date, there have been about 961 thousand residential Solar PV systems installed, most
of which are installed in the hilly region, particularly in the Lumbini and Karnali provinces. In addition
to small isolated systems, large utility-scale plants are also being installed. NEA operates about 1.35
MW plants while IPPs operate about 21 MW of solar plants.
As of 2018, the installed micro-hydropower plants have contributed up to 38 MW of power in total.
More than 1,800 MHPs provide electricity to 344 thousand households in the remote areas of Nepal.
MHPs have been providing service to the remote areas where the access to grid electricity is poor which.
Biogas is another renewable resource with a high potential for energy production. The number of
households with the potential for installation of a household biogas system is about 1.9 million, which
represents about 42% of the total households in Nepal. The installation is dominated by Terai and Hilly
belts due to the availability of a sufficient amount of feedstock and a favourable temperature. In the
case of wind energy, the potential supply in Nepal is estimated to be 3000MW. But 113.6 kW has been
harnessed to date and 5MW capacity is under construction in different parts of Nepal. The solar wind
hybrid mini-grid system installed in Nepal reached 1500kW as of 2022.
Organic municipal waste is another source of modern renewables. According to research, Kathmandu
has the potential of producing 1745 MWh of electricity from waste, Lalitpur Sub Metropolitan City has
the potential of 278 MWh, and Pokhara has the potential of producing 244 MWh of electricity from
x
waste. As per the 2020 report on Waste Management baseline study by CBS, the average organic waste
per municipality amounted to about 1,200 tons. According to a recent study, 130294 m3 of biogas can
be generated by utilizing 100% of the organic fraction of municipal solid waste(OFMSW) in
Kathmandu. The biogas produced can be used to fill up 21,045 LPG cylinders per day which can save
NRs 515 million.
Commercial Energy Resources

Nepal Electricity Authority is the sole organization responsible for the operation and distribution of
electricity supply in the country. As per NEA 2021, the total installed capacity developed by NEA
stands at 582 MW. NEA’s hydropower plants including small power plants generated a total of 2,810.74
GWh of electricity in FY 2020/21, a slight decrease of 6.96 % over the generation of 3021.04 GWh in
FY 2019/20. As of February 2022, The total installed capacity from hydropower plants is 2023 MW.
In addition, there is 53.4 MW from thermal power plants and 49.76 MW from grid-connected solar
power plants. The total installed capacity thus reached 2,205 MW by February 2022. As of June 2022,
the peak demand is 1864 MW whereas the national demand is 1564 MW, and the remaining is exported
to the neighboring country.
The primary production of coal is about 10.9 thousand tons whereas 2 million tons of coal are imported
to meet the demand in the country, which are mainly used in brick manufacturing industries.
Nepal Oil Corporation is the only organization responsible for the import and distribution of petroleum
products in Nepal. The NOC has current storage facilities of 68 thousand KL for all essential petroleum
fuels except for LPG. The impact of COVID is visible in petroleum imports in 2020 which shows a
more than 10% decrease in petrol, diesel, and kerosene and a significant reduction of 31% in ATF
imports compared to 2019. On the contrary, there is an increase in LPG consumption of 5% as most of
the activities are limited to the household.
Consumption Situation
Energy use is classified as traditional commercial and renewables forms. The energy consumption by
fuel types in 2021 shows the dominance of traditional energy with 66% share and that of commercial
and renewables share (excludes electricity) reached 31% and 2.4% respectively. Compared to 2009, the
traditional energy shares however decreased from 87% whereas there is an increase in commercial and
renewable shares. The total energy consumption in 2021 has increased to 626 PJ from 566PJ (163 TWh)
in 2020 and 589 PJ (157 TWh) in 2019. The decrease in energy consumption in 2020 is mainly due to
lower consumption of petroleum products as most of the economic activities which are the major
consumer of petroleum products halted due to the nationwide lockdown during the COVID pandemic.
The energy consumption decreased by 4% in 2020 compared to 2019 which regain its momentum to
achieve a 11% growth rate in 2021 compared to 2020.
xi
Agricultural Residue
3.0%
Animal Waste
2.9%
Petroleum Products
14.3%
626 PJ
Fuelwood (174 TWh) Coal
60.4% 9.3%
LPG
3.5%
Electricity
Renewables 4.2%
2.4%
Figure 2: Energy consumption by fuel types in 2021
The energy consumption by fuel type in three consecutive years is shown in Figure 3. It shows the
dominance of traditional biomass in overall consumption in all years. The increased share of traditional
biomass in 2020 is due to a decrease in other commercial energy consumption as a result of reduced
economic activities in the year.
66%
18%
2%
9%
4%
2021 626
71%
14%
8%
4%
3%
2020 566
68%
19%
7%
4%
2%
2019 589
0 100 200 300 400 500 600 700

GJ Thousands
Traditional biomass Petroleum products Coal Electricity Renewables
Figure 3: Energy consumption by fuel types in 2019, 2020, and 2021
The sectoral energy consumption has changed over the last decade. Residential sector consumption
decreased from 89% in 2009 to 63% in 2021 due mainly to the growth in economic activities, use of
modern technologies, and energy efficiency improvement. Industry sector consumption has increased
significantly to 18% followed by the commercial sector (7%), transport (9%) agriculture (1.6%), and
construction and mining (0.8%) in 2021. The effect of growing economic activities is seen mainly in–
the industrial, commercial, transport, and agriculture sector. Apart from these, the share of energy
xii
consumption is reaching 1% in the construction and mining sector – a significant sector in national
development
Transport
9.0%
Construction and
mining
0.8%
Residential
63.2% Agriculture
626 PJ 1.6%
(174 TWh)
Commercial
7.0%
Industry
18.3%
Figure 3: Energy consumption by sectors in 2021
The sectoral energy consumption in 2019, 2020, and 2021 is shown in Figure 4. There is a 4% decrease
in energy consumption in 2020 as the COVID hit most of the economic activities to halt. In contrast,
agriculture and residential sectors show 4% and 2% growth in 2020 being the former a subsistence
activity of Nepalese livelihood. Wherein there is an 11% growth in energy consumption in 2021
compared to 2020 as the impact of COVID lessened and economic activities resumed. In industry,
transport, and construction, and mining sectors energy consumption in 2021 increased by more than
30% compared to the previous year. At the same time GDP also grew at the rate of 5.8%.
700
626
Thousands
589 566
600
500
400
GJ
300
200
100
-
2019 2020 2021
Agriculture Commercial Industry

Residential Transport Construction and mining
Figure 4: Energy consumption by sectors in 2019, 2020, and 2021
In 2021, the agricultural sector consumed 9.8 PJ energy, among which 91% is diesel, 1.4% petrol, 7.4%
electricity, and 0.26% is solar. The agricultural sector's energy consumption in 2019 went up by 3.9%
xiii
during 2019-2021. However, in the commercial sector, consumption squeezed at the rate of 1.4% in
2020 compared to 2019 and accelerated at 9.2% in 2021 compared to the previous year. Similarly, in
the industrial sector which is a highly energy-intensive economic sector, the energy consumption
decreased at the rate of -5.8% in 2020 compared to 2019. With the especially loosened restriction in the
industrial sector, consumption grew by 29% in 2021 compared to the previous year. The total
consumption in this sector totals 114.5 PJ in 2021. Coal, traditional biomass, and petroleum products
are the major source of energy used in this sector. The average growth rate stands at 10% during 2019-
2020. On the other hand, the residential sector which is the most energy-consuming sector in Nepal
with a 64% share in total consumption, energy consumption increased at a rate of 2.2% per annum in
the last two years, higher than the population growth rate. Fuelwood is still the highest-energy type
consumed, with an 85% share in this sector. The share of LPG consumption has increased to 2.8%,
more than doubled in a decade. In addition, the renewables share mainly biogas has increased to 2.5%
and solar to 0.5%. Similarly, the use of electricity increased to 3% from 1% in 2009. Meanwhile, the
transport sector's energy consumption reduced by nearly 47% in 2020 compared to 2019. With loosened
restrictions, it increased by one and a half folds in 2021 compared to 2020. The Construction and Mining
sector energy consumption was also largely affected by pandemic restrictions during 2020.
Energy Indicators
Final energy intensity indicates the rate of energy consumption and energy efficiencies. The final energy
intensity increased to 21.92 GJ per capita in 2021 which was 15 GJ per capita in 2009, indicating higher
energy consumption. However, it is to be looked upon from the perspective of which energy and where
it has been used. In that case, it can be seen that the consumption is highest for the residential sector,
with increasing demand for commercial fuels. Yet the use of traditional biomass is still high. The energy
intensity in the residential sector has decreased in the past decade from about 14 GJ per capita to 13.2
GJ per capita in 2019. This shows the impact of modern energy access as well as clean energy
technology penetrations. The increasing trend of residential electricity per HH also indicated the gradual
shift to clean energy with the use of more efficient electric technologies. The electricity per capita,
including from alternative energy sources also have increased to 265 kWh in 2021. But this is still the
least in the South Asian average. To meet the government targets to enhance the consumption of
electricity to 700kWh per capita by 2022/23 more focus on electrification is needed.
The share of energy in national consumption shows a traditional energy share of 68%, imported energy
share of 29%, and renewable energy share of 6% in 2021. On the other hand, the energy share shows
that traditional biomass energy share is 66% of the total. The increasing commercial forms of energy
particularly petroleum products and coal increased the imported energy share to 29% in 2021 whereas
the renewable energy share including electricity reached 6% in 2021 showing the shift to clean energy.
Table 1: Final energy intensities
Parameter Unit 2019 2020 2021
Final energy intensity GJ per 1000 NRs Value Addition 0.28 0.27 0.29
GJ per capita 20.62 19.82 21.92
Electricity kWh per 1000 NRs 3.08 3.20 3.52
kWh per capita 228 232 265
Residential Electricity kWh per HH 218 251 296
The overall energy supply and demand situation of Nepal shows the dominance of traditional biomass
in Nepal. However, there is a gradual shift to commercial and renewable energy sources. Indigenous
sources mainly traditional biomass, modern renewable sources (solar wind, biogas, MHPs), and
xiv
hydropower potential are abundant in Nepal but very less has been harnessed. Most of the commercial
energy sources are imported to fulfill the growing energy demand of the nation. The energy share shows
that the imported fuel share is growing at the rate of 2% per annum which has a direct impact on the
national economy. To reduce the dependence on imported fuels particularly petroleum products,
electrification in all economic sectors is needed. Though the electricity consumption is increasing at the
rate of 15% in the last few years the electricity share is still lower than 5% of the national energy share.
The recently submitted Second Nationally Determined Contributions (NDC) and long-term strategy
for Net-zero emissions by 2050 also strongly focused on electrification providing a sustainable pathway
toward clean energy sources.
xv
1 Introduction
Energy consumption is one of the significant indicators of the development status of the country.
It indicates the current situation of economic activities as well as how well a country is progressing
towards development. Data and information regarding energy can provide crucial insights for
developing provincial targets and integrating them to reach the national target. Thus, a well-
organized energy database is a basis for policy formulation and sustainable energy planning.
Water and Energy Commission Secretariat (WECS) completed Sectorial Energy Supply/Demand
Profiles at the regional level and Residential Energy Supply/Demand Profiles at the district level
during 1990-1995 and updated in 1995/96. Industrial Sector Energy Consumption Survey was
completed in 1997/98 covering both traditional and modern sectors and commercial, transport, and
agricultural energy consumption survey was conducted in 1998/99, 1999/2000, and 2000/01
respectively. WECS published Energy Synopsis Report in 2010 with the baseline information that
provided the basic information about the available energy resources in the country and their
distribution in different parts of the country by physiographic region and development region. It
updated the energy supply and consumption pattern of the country and provided the basis for
analyzing the energy scenario of the nation. WECS conducted a National Survey of Energy
Consumption and Supply Situation in Nepal in 2011/2012 to determine the energy demand and
supply situation of the country in all economic sectors by physiographic region and developmental
region. The detailed survey updated the energy situation of the country and provided a new database
for the integrated energy system planning of Nepal. National Energy Strategy and Vision 2050 was
prepared in 2013 in which future energy demand was forecasted and scenario analysis was carried
o u t to develop future energy planning for the country. The energy consumption and Supply
situation in the Federal System of Nepal (Province No. 1 and Madhesh Province) was conducted in
2020. Energy consumption and Supply situations for the remaining provinces are also underway.
According to an Economic survey, the overall energy consumption of Nepal is largely dominated by
the use of non-commercial forms. Energy consumption is growing at the rate of 4% over the last
decade (MoF, 2021). There is a decline in traditional energy consumption from 84% in 2010 to 67%
in 2020 with the increasing use of modern energy resources. There is a gradual shift to commercial
energy sources (coal, petroleum products, and electricity) increasing the share from 15% in 2010 to
31% in 2020, an increase of 12% growth per annum. There is a steady growth in renewable energy
sources as well increasing the share from 1% in 2010 to 2% in 2020. Consumption of electricity has
lately increased to 4% from 2% a decade ago.
The national energy supply and consumption survey were carried out by WECS in 2011/12 which
shows the residential sector as dominating the energy-consuming sector. According to the survey,
residential accounts for the major share of energy consumption (80.4%) followed by industrial
(7.9%), transport (7.1%), commercial (3.4%), and agriculture (1.2%) in 2011/12 (WECS, 2013). The
recent provincial energy consumption and supply situation conducted for Province 1 and Madhesh
Province by WECS in 2020 show a slight difference in energy consumption by sectors. The detailed
energy survey shows that Province 1 consumed 74PJ with the industrial (45%) and residential sectors
(41%) dominating the energy consumption. Solid fuels – firewood, biomass, and coal dominated
the energy source type in Province 1 (WECS, 2021a). Similarly, Madhesh Province consumed
63PJ of energy with the residential sector consuming 62% of energy mainly from the traditional
biomass (55%) and non-renewable (36%) (WECS, 2021b).
In Nepal, the major source of energy in the residential sector is fuelwood, agriculture residue, animal
waste, biogas, and other biomass. Hydro and solar substitute traditional energy in an urban
1
residential area mainly for cooking and lighting. The industrial sector consumes coal, fuelwood,
diesel, and electricity as major sources of energy. The National Survey of Energy Consumption
and Supply Situation in Nepal, 2013 shows fuelwood, LPG, coal, and grid electricity as major
fuel sources in the commercial sector with a 34% share of non-renewable energy consumption
(WECS, 2013). The agriculture sector mainly uses fuel for water pumping and farm machinery that
consume diesel as a major fuel source. Diesel, petrol, and ATF are major fuel sources in the transport
sector with minimal contribution of electricity in this sector. 76% of imported petroleum products in
the country are used in the transport sector. As Nepal moves towards the path of sustainable
development, the roadmap to sustainable development goals emphasizes clean energy and energy
efficiency. The Second Nationally Determined Contributions (NDC) intends to reduce GHG
emissions from both energy and non-energysectors and the long-term strategy for Net-zero emissions
by 2050 targets zero carbon emissions by 2050. For that to achieve, Nepal needs a paradigm shift from
traditional energy sources to clean energy sources. The Ministry of Energy, Water Resources, and
Irrigation (MOEWRI) plan to generate 10,000 MW by 2028 and 100% electricity access by 2023 to
provice clean energy access to all. The National Planning Commission’s 15th periodic plan also
targets to achieve around 4000MW of generation from renewable energy resources by 2030 (NPC,
2020). In addition, the government plans to increase the share of solar energy generation through
private sectors with a target of generating over 550MW by 2024. Furthermore, as part of the NDC
target, Nepal plans to supply 15% of the total energy demand through clean energy sources, adding
2100MW of solar energy to the national grid by 2030 (GoN, 2020).
1.1 Country Profile

Nepal is a landlocked country in South Asia with a small land area of 147, 516 km2, but with a large
diversification in ecology as well as demography. Located between the two economic giants – China
on the northern side and India on the other three, it stretches 800 km from 80° East to 89° East.
Meanwhile, it ranges from an altitude of 60 meters to 8848 meters above mean sea level between, 26°
North to 31° North starching about 145 km to 241 km. The country is divided into three main
physiographical belts spanning East to West. In the south, the plains of the Terai Region cover
approximately 23% of the country’s total area and are both the main agricultural region and the most
densely populated region. To the north, the Hilly Region covers approximately 42% of the total area
and consists of mountains, hills, flatlands, and valleys with elevations ranging from 600 to 3,000
meters. Farther north, the Himalayan Region covers nearly 35% of the total area and contains 200
peaks more than 6,000 meters in elevation and 13 peaks more than 8,000 meters high, including
Sagarmatha - the world’s highest mountain. From these, the water resources of Nepal emerge. The
country’s three major river systems are—from east to west—the Koshi (513 kilometers), Narayani
(332 kilometers), and Karnali (507 kilometers). All these rivers are major tributaries of the Ganga
in northern India.
Administratively, the country is divided into 7 provinces which are further divided into 77 districts,
and within those, there are 753 local units which include 6 metropolitan municipalities, 11 sub-
metropolitan municipalities, and 276 municipalities. Climatically, Nepal lies within a subtropical
monsoon climate zone. Climatic conditions and precipitation tend to vary with elevation, ranging
from tropical in the Terai plains to alpine and tundra in the northern mountain areas. Temperatures
range from 5° C to 47° C in the Terai Region, from 0° to 28° C in the Hill Region, and from below
0° C to 16° C in the Himalayas. Annual rainfall generally increases with elevation up to 3,000
meters, thereafter declining with elevation and latitude. Precipitation tends to be highest in the east
and declines westward, but certain areas in central Nepal have consistently high rainfall. The
2
majority of precipitation nearly 80% occurs during the annual monsoon. The pre-monsoon season
from March to May is hot and dry, the monsoon season (generally June to September) is hot, and the
post-monsoon season typically lasts through mid-October. Mid-October through March is typically
dry and cold.
Nepal has large biodiversity within a small land area. However, Nepal’s natural resource base is
widely regarded as insufficient for economic needs. Commercial fuel resources are especially scarce.
Although some methane gas has been discovered, petroleum reserves have not materialized.
Renewable resources, particularly arable land, are perhaps the most economically important
resources, but hydropower is hugely underutilized. The most available metallic minerals are
copper, gold, lead, and zinc, but only lead and zinc have been commercially viable. Nonmetallic
minerals such as marble, talc, and particularly limestone have been commercially viable, and there
are some deposits of dolomite and magnesite.
1.2 Demography
Demography is one of the major drivers of energy consumption, particularly in the residential and
transport sector. As per the preliminary report of the Central Bureau of Statistics (CBS, 2021), the
national population in 2021 was estimated to be 29,192,480 with a growth rate of 0.93 % during the
2011-2021 period. The province-wise population, household numbers and household size is as shown
in Figure 1-1. The national household size stood at 4.32 in the 2021 census lower than the previous
HH size of 4.88 in 2011. The urban and rural household status as per CBS shows that approximately
66% of the population resides in the urban area and remains in the rural areas of Nepal. Population
status as per physiographic division shows more than half of the population inhabits in Terai region
(54%), followed by hills (40%) and mountains (6%).
Figure 1-1 Provincial Population, Household number, and Household size in 2021
The provincial population share is as shown in Figure 1-1. It shows that the Bagmati and Madhesh
provinces are inhabited by the highest population with 21% of the total population each, followed by
Lumbini, Province 1, Sudurpashchim, Gandaki, and Karnali provinces.
1.3 Economy
The global economy was contracted by 3.3% in 2020 when most of the countries experienced negative
economic growth along with the slowdown in global economic activities caused by the pandemic.
The Nepalese economic growth become negative by 2.4% first time in the last two decades in the
3
fiscal year 2019/20 due to the impact of the Covid-19 pandemic. It however recovered and grew at a
level of 4.3% in the current fiscal year (CBS, 2022). Although gradual improvement in the health
crisis has been expected, the widely spread second wave of the Covid-19 during the third quarter of
the last fiscal year has become challenging in achieving a higher growth rate.
Nepal has achieved good economic growth since 2014. This economic growth was mainly achieved
by the expansion of the service and industry sectors. But the earthquake impact during 2015, and later
the Covid impact in 2019 took a toll on the national economy. The GDP growth rate was 6.7% in 2019
which was shackled due to the global pandemic. The growth rate slowed down to -2.4% in 2020 which
soon gained the momentum to achieve 4.4% in 2021 and 5.8% in 2022 as the economic activities
resumed. Yet the growth rate is below the pre-Covid scenario. The provincial GDP growth rate is as
shown in Figure 1-2. Province 1 shows no growth during the pandemic and Karnali and Sudurpaschim
are least affected as the economic contribution from those provinces are the least whereas Bagmati
province is much hit by the Pandemic with negative growth of 5.7% in the same year.
Provinces
8.4
8.0
10.0
7.1
6.9
6.9
6.7
6.7
6.7
6.2
5.8
8.0
5.6
5.5
5.4
5.4
4.9
4.8
4.6
4.3
4.3
4.3
4.2
4.1
3.8
3.7
6.0
2.0
4.0
1.4
Percent
0.0
2.0
0.0
2.0
0.7
0.8
2.0
2.4
4.0
6.0
5.7
8.0
2075/76 2076/77 2077/78 2078/79*
Figure 1-2 GDP growth rate (MoF 2022)
The value-added generated by the industry sector as the percentage of GDP grew slowly from 14.67%
in 2012 to 15.56% in 2021. Meanwhile, the service sector increased to 54.16% from 51.78% and
agricultural GVA decreased to 30.38% from 33.55% within the same period (Figure 1-3)
Figure 1-3 GVA structure by sectoral groups
4
The GVA in the agriculture, industry, and service sectors are expected to increase by 2.3%, 10.2%,
and 5.9% respectively, in the current fiscal year 2021/22. The GVA growth rate that went negative
during 2019/2020, recovered to 3.83% and is expected to reach 5.49% this fiscal year. Accordingly,
the contribution of agriculture, industry, and service sectors in gross value added is estimated to be
29.37%, 16.25%, and 54.38%, respectively in the current fiscal year. See Annex I for more details.
Figure 1-4 GVA growth rates by sectoral groups
Out of the total estimated GVA of Rs. 2,284 billion (basic price), in the fiscal year 2020/21, the share
of Bagmati province is the highest at 36% and the Karnali province at the lowest at 4%. Figure 1-5
shows the province-wise GDP contribution in FY 2019/20, 2020/21, and provisional estimates for
2021/2022.
Figure 1-5 Province-wise contribution to GDP (CBS, 2022)
As per the National Economic Census 2018, there were nearly 923 thousand establishments, of which
only 50% are registered (CBS, 2018). Meanwhile by the number of persons engaged, Accommodation
and food service employees largest number while, education comes second, little shy to
manufacturing. Province-wise, Bagmati had the largest number of establishments flowed by Province
1, Lumbini and Madhesh provinces. The establishments, as well as economic activities in Karnali and
Sudrupaschim province overall, are very small in a national context (Figure 1-6).
5
Figure 1-6 Provincial mixes of establishments in 2018
The wholesale and retail trade have the largest number of establishments followed by accommodation
and food. Manufacturing establishments come third (Figure 1-7). But other than that, the other
industry category is below 1% in establishments. However, the output of the manufacturing and other
industry are substantial thus contributing more than 50% to the national GDP as discussed in the
previous section. In terms of energy usage, apart from the residential sector, manufacturing and
accommodation, and food service activities are the largest energy consumer in economic sectors as
seen from provincial reports (WECS, 2021a; WECS, 2021b).
Figure 1-7 Share of Establishments by industrial divisions
1.4 Energy and related policies

The energy policy of Nepal has a clear policy of maximizing hydropower utilization to meet
domestic electricity demand and accelerate the renewable energy service in the country. To provide
access to energy and energy-efficient technologies, various subsidy mechanisms are in effect. National
Rural Energy Programme (NREP) provided a framework for the implementation in local
communities across the country. Under this policy, Nepal intends to expand its energy mix focusing
on renewable energy by 20% by diversifying its energy consumption pattern to more industrial
and commercial sectors.
Ministry for Electricity, Water Resources, and Irrigation (MOEWRI) - White Paper 2075
Ministry for Electricity, Water Resources, and Irrigation (MOEWRI) released a white paper 2075
in July 2018 with the objectives to elevate hydropower and renewable energy generation in the
coming decade to take the country towards the path of sustainable development. It has set the target
to improve per capita electricity consumption from the current 700kWh to 1500kWh in the coming
ten years. It requires the penetration of electricity in all sectors, including electrification in
6
residential, commercial, transport, industry, and agriculture. It plans to generate 3000MW of

hydropower by 2021 and upgrade the generation capacity by 5000 MW in the coming five years and
by 15,000MW in 10 years. It also envisages that domestic demand will increase to 10,000MW in the
coming ten years. Government plans to generate 200 MW of solar power from Madhesh Province,
where the hydropower potential is minimal. The white paper focuses on optimum generation
and utilization of clean energy resources, including efficiency improvement in the country.
Low Carbon Economic Development Strategy

Ministry of Population and Environment (MOPE) has prepared a Low Carbon Economic
Development Strategy (LCEDS), with the vision of the strategy for enabling Nepal to become a
developing nation through low carbon green economic development. It promotes the use of renewable
energy in all economic sectors with the approach to reducing national GHG emissions. The
strategy provides a framework for achieving sustainable development, prioritizing the sector-
specific implementation plans for low GHG emissions. The strategic sectors included in the report
are energy, agriculture and livestock, industry, transportation, and commercial.
Second Nationally Determined Contribution

The Government of Nepal submitted its enhanced Nationally Determined Contribution (NDC) in
December 2020 under the Paris Agreement for the period 2021-2030, following Articles 4.2 and 4.11
of the Paris Agreement, and Decision 1/CP.21 paragraph 23 and 24, and other relevant provisions of
the Paris Agreement. The major sectoral targets include energy generation from approximately 1,400
MW to 15,000 MW, of which 5-10 % will be generated from mini and micro-hydropower, the solar,
wind, and bio-energy. Ensuring sales of e-vehicles to cover 90% of all private passenger vehicle sales
in the transport sector. In the residential sector, it targets to increase the electric cookstoves usage
to 25% of households by 2025, install improved cookstoves in rural areas and emphasize household
as well as institutional biogas plants
Nepal: Sustainable Development Goals Status and Roadmaps 2016-2030

The National Planning Commission prepared the status and roadmaps to achieve sustainable
development goals by 2030. It envisions Nepal graduating from the list of Least Developed
Countries which requires the rapid economic growth of at least 7% over the decades. It
highlights significant issues and challenges along the route to meeting SDGs. It emphasizes three
sectors mainly clean energy, agriculture, and tourism for the sustainable prosperity of the nation.
Sustainable Development Goals (SDGs) 7 targets include achieving (i) universal access to affordable,
reliable, and modern energy services, (ii) increasing substantially the share of renewable energy in
the global energy mix, and (iii) doubling the global rate of improvement in energy efficiency by
2030. The specific targets include increasing access to electricity in 99% of households and limiting
the use of LPG to less than 40% such that people would shift to electric cooking. It would increase
the per capita electricity consumption to 1500 kWh which would require the generation of 15,000
MW of installed capacity. The major intervention that would require to fulfill those targets are (i) the
generation of power through large hydro projects, micro-hydro, off-grid, and grid-connected solar
systems, (ii) transmission and distribution systems, (iii) improvement in energy efficiency, and
(iv) O&M expenses to maintain a steady quality of power supply.
Nepal Electricity Regulatory Commission Act 2074

Nepal Electricity Regulatory Commission Bill was endorsed in 2017 to form a regulatory body for
facilitating electricity production, transmission, distribution, trading, and management
transparently. Its other objectives are to balance supply and demand, set electricity tariffs, develop
7
competition in the electricity market, and protect consumer rights. With the establishment of this
regulatory body, the electricity market is expected to develop in a competitive environment
where stakeholders’ rights are protected, and electricity is made accessible, affordable, and
acceptable
Nepal’s Energy Sector Vision 2050 A.D.

Energy vision 2050 was formulated in 2013 with the vision to explore potential energy
resources available in the country to meet energy demand sustainably. It envisions reducing the
dependence on imported petroleum products by substituting them with indigenously available
hydropower and other renewable energy resources. It identifies hydropower as the lead energy
resource to meet the long-term energy demand of all sectors in the country. Electrification in
all major sectors demands a power capacity of 4,100 MW, 11,500 MW, and 31,000 MW by 2020,
2030, and 2050 respectively. To achieve the target, GDP shares of the energy sector should
approximately be 2.4%.
Nepal’s 20-Year Renewable Energy Perspective Plan 2000-2020

The renewable energy perspective plan was formulated to accelerate the development of
renewable energy to meet Nepal’s increasing energy needs. It attempts to quantify the contribution
of renewable energy to the overall energy consumption in the country. The installed renewable
capacity was 35 MW in 2015, and it targets to increase the installed capacity to 894MW by
2030. The share of renewable energy in total energy consumption was 2% in 2015 and the plan
targets to increase the share to 15% by 2030. The contribution of small/micro hydropower was
1.7%, and 0.1% each from wind, solar, and biomass in 2015. The 20-year perspective plan targets to
increase the share of small/micro hydropower to 9% and of wind, solar, and biomass to 2% in
2030. The target for domestic biogas plant installation is 1.5 million plants from 0.3 million in 2015.
Similarly, the target for an improved cookstove is 2 million by 2030 from 0.6 million in 2015. The
plan documents the institutional framework, policy & regulatory environment, capacity building,
research & development, implementation mechanism, and prioritization of tasks to achieve this
objective.
National Energy Strategy of Nepal, 2013

Nepal Energy Strategy of Nepal is a clear and comprehensive policy on the energy strategy
developed by the WECS, with inputs from key stakeholders, and has adopted a set of objectives
and policy principles that provide the framework for strategy formulation. Also, several mitigating
issues related to the energy sector such as; poverty, access to electricity, clean and modern energy
access, generating hydropower, conserving the environment, and reducing health impact due to
indoor air pollution are identified. However, the topmost priority of the strategy is on the
development and management of Integrated energy planning in the existing sub-sectoral energy
planning process
under the guiding principles of socio-economic development and environmental sustainability. The
strategy targets to replace the 30% demand capacity of diesel and petrol cars of the base case in the
year 2030 with the electric and hybrid vehicles in equal share, improve efficiency, a n d discourage
the use of traditional energy by replacing it with clean fuels.
Nepal's Long-term Strategy (LTS) for Net-zero Emissions, 2021

The Long-term Strategy for Net-zero emissions was formulated in 2021 by the Ministry of Forest
and Environment and was recently submitted in the COP26 by Nepal Government. The major target
is to reduce carbon emissions and achieve net-zero carbon emissions from both the energy and non-
8
energy sectors by 2045. To move towards the path of carbon-neutrality, it has taken stringent
mitigation measures which would require bold policymaking, social transformation, and
technological advancements. Its high ambition-related actions necessitate significant conditional
financial resources, and its realization requires huge investments from domestic and international
funding institutions. The sectoral targets include electrification in all potential end-use services.
15th five-year plan (2076/77-2080-81)

The current fifteenth five-year plan (2076/77-2080/81) has emphasized rapid hydropower
production ensuring energy security. It has aimed to ensure clean energy availability through the
increase in production of hydropower energy; to increase the consumption of electric energy in
different sectors of life. It also intends to increase the regional trade of electric power reducing the
import of petroleum products. Additionally, the plan aims to enhance renewable energy production
and use ensuring access to energy for all.
Other supporting plans, policies, and programs are listed in Table 1-1
Table 1-1 Key Plans and Policies in Energy Sector
Key Plans, Policies, Features

programs
Hydropower Development  Emphasize foreign private sector investment to develop hydropower to meet
Policy 1992, the existing demand
Hydropower Development
 Provision for developing hydropower through a transparent procedure to
Policy 2001,
attract foreign and domestic private sectors investment,
Water Resources Act
1992, and Electricity Act  To create an independent regulatory body
1992
Forest Act (1993)  Provision to hand over any part of the National Forest to a user's group in the
form of a community forest for developing, managing, and utilization of the
forest.
Motor Vehicle and  Legal provision for vehicles to pass the roadworthiness test for registration
Transport Management and operation - the test includes pollution test and age of vehicles.
Act (1993)
 Provision of penalties for violating the regulations and the spot check and
fines for vehicles that are not roadworthy
 Clear roles and responsibilities, and institutional setup of Department and

Transport Management Committee
 Appointment of transport inspector.

Forest Sector Policy (2000)  Promotion of community forestry by entrusting forest protection and
management to user groups.
 Development and promotion of alternative energy sources and adoption of
energy-efficient ICS
Hydropower Development  Generation of electricity at low cost by utilizing the water resources available
Policy (2001) in the country mobilizing resources from the private sector, government, and
bilateral and regional cooperation.
National Transport Policy  Supporting policies and programs that address emission reductions from the
(2002) transport sector.
 Provisions to restrict polluting vehicles restrict the operation of vehicles in
9

programs
urban core areas and the development of cycle tracks.
 Provision to exempt custom duty and tax on non-polluting vehicles

 Formation of Road Transport Authority for road transport management
 Formation of National Transport Board to coordinate authorities relating to

transport, including civil aviation
Rural Energy Policy  Support for renewable energy technologies in rural areas without grid power
(2006) supply
 Provision of institutional setup and a Rural Energy Fund

 Provision to provide rural renewable energy subsidy, and mobilize the
private sector, financial institutions, NGOs, and local organizations.
Nepal Rural And  Single program modality for the effectiveness of RE projects and activities.
Renewable Energy
 Targets for various RETs
Program
Industrial Policy (2011)  Provisions for technical, and financial support and provide incentives to
industries using environment-friendly and energy-efficient technologies.
 No royalty or tax for self-dependent industries on electricity and provision

to sell excess energy to the national grid
 Ordinance for auditing and reporting of energy intensity of industries
 Provision to build the capacity of the Department to monitor and control

pollution.
Environment-friendly  Promotion, development, and expansion of environment-friendly and

Vehicle and Transport electric vehicles and transportation.
Policy (2014)
 Provision to allow conversion of technically feasible motor vehicles into
electric vehicles.
 Target to achieve more than 20% of vehicle fleets to be environment-friendly

vehicles by 2020.
 Development of cycle tracks and charging stations for electric vehicles.

 Preparation of LCEDS inclusive of environment-friendly vehicles and
transport modes
 Tax exemption and the provision of loans for private consumers to purchase
environment-friendly vehicles
 Establishment of a separate division or section under the MOPIT, or its

departments to oversee the registration, regulation, and monitoring of
environment-friendly vehicles
Subsidy Policy for  Explicit subsidies and financial arrangement/guidelines
Renewable Energy (2015)
 Provision of net metering policy for urban solar energy.
Urban Solar Energy
System Subsidy and Loan  Provision for tax exemption for importing solar energy systems, net metering
Guidelines (2015) equipment, and LED lights
14th three-year plan 2073 -  Establishment of pollution monitoring systems in major urban areas
10

programs
76  Revision of the standards for lifespan and emission level for vehicles
 Establishment of waste processing centers in each municipality
 Promote and develop clean, renewable energy

 Priority for hydropower development includes storage power plants, rural
electrification, and smart grid and smart metering.
 Generation of 2,300 MW hydropower, 11 MW mini, and micro-hydro, 16
MW solar, 1 MW wind
 Study and development of railway including metro
 Establishment of 7 Vehicle fitness testing centers and old vehicle

management
National Renewable  Accelerate the transition from subsidy centered model to a credit-focused
Energy Framework, 2017 model along with a smart subsidy mechanism
 Improve access to renewable energy

National Energy efficiency  To double the average improvement rate of energy efficiency in Nepal from
strategy, 2075 0.84% per year during 2000- 2015 AD to 1.68% per year during 2015-2030
(2018) AD.
1.5 SAARC energy outlook

The SAARC countries comprising Nepal, India, Pakistan, Bangladesh, Sri Lanka, Afghanistan,
Bhutan, and Maldives, have contrasting economic profiles, energy consumption patterns, and energy
portfolios. While India is one of the fastest-growing nations in the world (~7% GDP growth during
fiscals 2013-2018), Afghanistan is the poorest among all (SEC, 2018). The energy profile of each
country is discussed below:
Afghanistan
Afghanistan is one of the least developed nations in the world with the vast majority of people living
in poverty. The energy consumption pattern in the country shows the primary energy consumption of
4.3 Million Tons of Oil Equivalent (MTOE) in 2018 which is expected to grow at a CAGR of 7% to
reach 9.3 MTOE in 2030. Currently, only 35% of the country is electrified with 90% of rural
households without access to electricity. Fuelwood, charcoal, and agricultural and animal waste still
dominate energy sources and are used for cooking and heating. A large%age of the population still
uses kerosene, candles, and biogas for lighting. Biomass forms ~10% of the total primary energy
consumption in the country (as of fiscal 2018). Fuel mix in 2018 showed 49% share of petroleum
products, 29% coal, 10% biomass, 7% imported electricity,4% gas, and 2% hydro. Average per capita
electricity consumption is between 100 kWh and 150 kWh per person per year which is among the
lowest in the world. The Afghanistan National Renewable Energy Policy aims to mainstream
renewable energy in the national energy sector planning through different projects in the country with
the target to generate 350-450 MW of renewables capacity by 2032.
Bangladesh
The country has been growing strongly with GDP rising 6.0-7.2% from fiscal 2013 onwards, led by
rapid urbanization and improvement in energy access. The energy consumption pattern in the country
11
shows the primary energy consumption of 37.6 Million Tons of Oil Equivalent (MTOE) in 2018 which
is expected to grow at a CAGR of 7% to reach 85.3 MTOE in 2030. Gas accounts for about two-thirds
of its primary energy consumption which is an indigenous production. However, with domestic
production of gas depleting, consumption of coal and imported LNG is increasing. Fuel mix in 2018
showed 77% Gas, 18% oil, 4% coal, and remaining electricity. The per capita energy generation is
433 kWh in fiscal 2017.
Bhutan
Bhutan is one of the fastest-growing economies in the world with a GDP growth of around 7.5% in
2017. The energy consumption pattern in the country shows the primary energy consumption of 0.725
Million Tons of Oil Equivalent (MTOE) in 2017 which is expected to reach 1.5 MTOE in 2030.
Biomass and electricity generated from hydel projects meet around 60% of the total primary energy
requirement of the country. Petroleum and Coal meet the reaming requirements. Fuel mix in 2018
showed 33% biomass, 26% hydro, 23% petroleum products, 18% coal, and 1% others. Bhutan‘s
electricity peak load has been estimated to reach 772 MW by 2030 from 362 MW in 2017.
India
India, the largest country among the SAARC nations by economy and size, has grown steadily at a
CAGR of ~7% over the last five fiscals. The energy consumption pattern in the country shows the
primary energy consumption of 817 Million Tons of Oil Equivalent (MTOE) in 2018 which is
expected to grow at a CAGR of 4.5% to reach 1,392 MTOE in 2030. Coal is the major primary energy
source in the country. Renewable energy usage is increasing with the country’s strong commitment
to sustainable energy. However, the reliance on fossil fuels is still high with industrial and commercial
growth. Fuel mix in 2018 showed 65% coal, 26% oil, 7% gas, 1% nuclear, 1% hydro, and remaining
renewables. As of fiscal 2018, 45 GW of hydro projects has been set up in the country, contributing
~13% of the power generation mix. India had an installed solar capacity of ~22 GW as of fiscal 2018.
Maldives
The real GDP of Maldives witnessed a 6% CAGR over 2012-2017, primarily led by the construction
sector, large public infrastructure projects, and a rise in tourism. The energy consumption pattern in
the country shows the primary energy consumption of 0.543 Million Tons of Oil Equivalent (MTOE)
in 2018 which is expected to grow at a CAGR of 5.7% to reach 1.116 MTOE in 2030. Owing to the
lack of indigenous fossil fuel resources, the country completely depends on imports of petroleum
products to meet its energy needs. Fuel mix in 2018 showed a 97% share of petroleum products, 3%
gas, and 2% renewables. In 2017, Maldives had an installed power plant capacity of 87.7 MW.
Nepal
Nepal is a landlocked nation spread over 147,181 sq km and shares a border with China and India.
Nepal‘s economy witnessed a softer 4.3% CAGR during fiscal 2013-2017. The energy consumption
pattern in the country shows the primary energy consumption of 13.4 Million Tons of Oil Equivalent
(MTOE) in 2018 which is expected to grow at a CAGR of 3.8% to reach 21.2 MTOE in 2030.
Traditional fuel met 71% of demand in 2018. The country is rich in fuels such as fuelwood and hydro
reserves but has very limited coal resources and no proven petroleum reserves. Fuel mix in 2018
showed 71% traditional fuels, 18% petroleum products, 5% coal, 4% electricity, and 2% renewables.
The per capita electricity generation was 250 kWh in 2021 (CBS, 2021; NEA, 2021).
Pakistan
Pakistan, although has a strong growth in GDP at 8.5% during fiscals 2013-2018, the country has huge
12
power debt, poor financial position, imports of huge fossil fuels, and limited domestic production. The
energy consumption pattern in the country shows the primary energy consumption of 75 Million Tons
of Oil Equivalent (MTOE) in 2018 which is expected to grow at a CAGR of 5.8% to reach 147 MTOE
in 2030. Oil and gas constitute the majority of primary energy usage in Pakistan. Fuel mix in 2018
showed 48% share of gas, 39% oil, 9% coal, 3% hydro, 1% nuclear, and remaining renewables.
Sri Lanka
Sri Lanka is a large consumer of bioenergy with ~12 million tons of biomass used in 2017, accounting
for ~40% of its energy mix. The energy consumption pattern in the country shows the primary energy
consumption of 11 Million Tons of Oil Equivalent (MTOE) in 2018 which is expected to grow at a
CAGR of 3% to reach 16 MTOE in 2030. The country is 100% electrified however usage of coal is
expected to increase as more coal-based power plants are installed. Fuel mix in 2018 showed 46% oil,
40% biomass, 10% coal, 4% hydro, and remaining renewables. The total installed capacity was 4,109
MW in 2017 with a peak demand of ~2600 MW, and the system reserve margin was maintained at
54.6%.
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2 Methodology
The methodology to carry out the proposed work is shown in Figure 2-1. The work was carried out
in three major phases. In the first phase, a review of published documents on energy supply and
consumption was carried out and a detailed methodology for data collection was developed. Identifying
the relevant institutions and preparing the questionnaire and format to collect relevant data were done
in this phase. The inception report and workshop were carried out among the WECS officials.
In the second phase, data collection from the identified institutions was carried out. The collected
data were analyzed by fuel type, and by economic sectors: residential, commercial, transport,
industry, agriculture, and construction and mining sectors. The supply and consumption situations
of energy by economic sectors were carried out for t h e Fiscal years 2075/76, 2076/77, and
2077/78. hereafter given as 2019, 2020, and 2021 in AD. The energy balance for the analysis period
was prepared which gives a snapshot of energy supply and consumption for the period. Analysis was
carried out for the energy pricing history of Nepal. Finally, a draft report was prepared.
In the final phase, the stakeholder’s consultation workshop will be carried out to disseminate the
results, and feedback from the stakeholders will be incorporated to prepare the final energy synopsis
report.
Figure 2-1 Methodological framework
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2.1 Energy supply potential estimation

The primary energy resource used in Nepal is forest and hydropower. However, with the
increasing demand for petroleum fuels, the import dependency has been ever- increasing.
Although there is a large number of resources for renewable, the sustainable biomass and wood supply
have always been an issue.
Traditional Energy
Traditional energy refers to the energy sources that had been used since early ages, that are used for
thermal purposes, and are extracted from natural resources. There are organic matters that are
replenished in a short period. The major traditional energy resources in Nepal are Fuelwood,
agricultural residue, and animal wastes.
2.1.1.1 Fuelwood
Over 90 % of the biomass is predominantly and traditionally used for cooking and heating purposes
in households. The main resource of the woody biomass is the forest. In addition to that, some
private farmlands also contribute to the production of fuelwood. Recently, the Ministry of Forest
and Soil Conservation published the National Forest Reference Level (FRL) of Nepal 2000-2010 in
2016 which provides detailed information on the activities such as deforestation, forest degradation
due to fuelwood extraction, grazing, and forest enhancement (afforestation/reforestation) (MoFSC,
2016). It provides a detailed methodology for the estimation of sustainable fuelwood supply
potential which uses the Dendroenergy Biomass (DEB) Mean Annual Increment (MAI) method
for the estimation. The annual fuelwood harvesting in a given area is considered sustainable if it’s
less than, or equal to, the DEB MAI of such area, while the harvesting fraction that exceeds DEB MAI
is considered unsustainable. The quantity of unsustainable harvesting corresponds to the annual
forest biomass loss (or quantity of biomass that cannot be regenerated by normal re-growth capacity)
and represents the degradation due to excessive fuelwood harvesting. The annual sustainable supply
potential that is accessible and potentially available for energy uses is estimated to be 15.7 million
tons DM. Such supply potential is significantly greater than the annual fuelwood demand, exceeding it
by 5.6 million tons DM. But this apparent surplus is purely theoretical since demand and supply
potential are not evenly distributed and there are areas where fuelwood harvestings exceed the
sustainable increment and other areas where the supply potential remains untapped. The Dendroenergy
Biomass (DEB) stock is estimated at 2010, the study was carried out between 2010 and 2014.
2.1.1.2 Agricultural Residues

Besides fuelwood, agricultural residues of crops such as paddy, wheat, millet, jute, etc. are also used
as a source of energy particularly for cooking and heating. Many studies have evaluated the potential
of the crop residues for energy generation on different levels ranging from local to global. WECS
(2010) estimated the theoretical national energy potential of crop residues to be about 234 million GJ,
which was around 61 % of the total energy consumption of the country in 2008/09. The potential
production was estimated based on residue-to-product ratio (RPR) analysis. Actual values of RPR
however vary widely depending on local conditions, crop species, and moisture content. The cereal
crops are considered for the residue production in this study. The total production of cereal crops
mainly paddy, wheat, millet, and maize were obtained from Statistical Information on Nepalese
Agriculture published annually by the Ministry of Agricultural and Livestock Development
(MoALD). The total production was thus multiplied by its respective RPR value obtained by the latest
study carried out by Adhikari, 2017. The potential energy from the agri-residue is then estimated using
the net calorific value The RPR value and the calorific value used in this study are shown in Table 2-1.
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Table 2-1 Residue to Product ratio and Net calorific value
Crop residues Residue to Product ratio Net calorific value (MJ kg-1)
Paddy husks 0.36 16.57
Paddy straw 1.97 15.80
Wheat husks 0.82 17.46
Wheat straw 1.46 17.46
Corn stalks 2.12 15.44
Corn cobs 0.28 15.57
Corn ears 0.29 12.56
Millet husks 0.14 12.56
Millet straw 1.89 12.56
Source: (WECS, 2010; Adhikari & Denich, 2019)
2.1.1.3 Animal Waste

Animal waste is another source of traditional biomass energy largely used in rural areas for cooking
and heating purposes. Animal waste is also used to produce biogas plants as a clean renewable
energy source. However direct use in end-use is considered to be less efficient and traditional as the
heat content of animal waste remains low. Existing cattle and buffalos are considered a major source
of animal waste. For the estimation of potential animal waste supply, the total number of livestock
was first obtained from Statistical Information on Nepalese Agriculture published by MoALD (2021).
The dry waste production per unit of animal was based on the latest study carried out by Adhikari &
Denich (2019) as shown in Table 2-2. The average accessibility and collection factor of 70% has been
used to estimate the actual dry dung production in the country (Adhikari & Denich, 2019). The
potential energy from the animal waste was thus estimated using the calorific value of dry dung
estimated to be 14.92 MJ/kg. Animal waste is also used as the primary feedstock for biogas
production. It has been assumed that 17% of animal waste is used for biogas production in Nepal as
per the study conducted by Adhikari & Denich (2019).
Table 2-2 Dry dung yield from livestock by topographic region
Livestock Region kg of DM/day/livestock

Terai 1.776
Cattle Hill 1.130
Mountain 0.462
Terai 2.441
Buffalo Hill 2.561
Mountain 1.582
Commercial Fuels
Commercial fuels refer to commercially traded energy commodities. These fuels can be in the solid-
state, liquid, or gaseous as well as converted energy types like electricity. These fuels are usually
refined or converted from their original form except for coal.
2.1.2.1 Petroleum Products

All petroleum products are imported from India primarily and from China at nominal amounts. Nepal
Oil Corporation is the sole authority for importing petroleum products in Nepal. The reliable import
and sales data within the different levels of the federal government were taken from the respective
regional offices of NOC (2021). Furnace oil is largely used by industries and is imported via the
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Department of customs. Data from different custom offices were assimilated to account for furnace
oil supply in the country. The Civil Aviation Authority of Nepal (CAAN) operates the aviation sector
in Nepal. So the passenger, aircraft, and cargo movement details at different airports in Nepal were
obtained from the CANN for the ATF fuel consumption in Nepal. Furthermore, data for the
consumption pattern of petroleum were estimated from the literature review. Transport, industry,
construction and mining, and agriculture are the three major petroleum-consuming sectors and
nominal consumption in residential and commercial sectors.
2.1.2.2 Coal
Coal is almost exclusively consumed by the industrial sector, primarily for heating and boiling
processes in brick, lime, and cement production as well as in steel processing. Apart from some minor
coal reserves, all the coal for industrial needs is imported from India and other countries. Department
of Mines and Geology is responsible for identifying the source, size, and current producing capacity
of the coal. While the industries can import the required amount of coal themselves. Domestic data
were obtained from the Department of Mines and Geology. The import data were taken from the
department of customs and customs offices.
2.1.2.3 Electricity
The largest part of the electricity consumed in the country is generated from hydropower. Nepal has one
of the largest hydropower potential owing to its mountainous geography, even though the country has
a small land area. The 83 GW hydro potential as put upon by Shrestha in the 1960s has been updated
in 2015 by Bajracharya, which indicated the potential is near 103 GW. During peak hours, the unmet
demand is met by imports from India. In addition to these, a few large grid-connected Solar PV
plants also have begun to generate electricity. NEA is responsible for the electricity supply through
the national grid. Besides the national grid, thousands of small installations (diesel generator sets,
solar home systems, winds, small island mini-grids, etc.) are installed in Nepal. DOED, AEPC,
Ministry of Energy, Water Resources and Irrigation (MoEWRI) are involved in the licensing
procedure for the different sizes and nature of the project depending upon the authority. Details of
the hydropower and other types of electricity shall be taken from these governmental organizations
furthermore consumption patterns were taken from the NEA and AEPC. Following data for
electricity were collected:
 Theoretical and potential hydropower capacity of Nepal
 Hydropower capacity and generation by province
 NEA operated, under construction, and planned hydropower plants, and their capacity
 IPPs operated, under construction, and planned hydropower plants, and their capacity
 Total import and export of electricity
 Transmission and distribution loss, own use, and system loss
The consumption of electricity was estimated based on the first via NEA distribution centers which
give electricity consumption status in each economic sector and the second via the energy usage pattern
as per the recently published data.
Modern Renewables
Modern renewables include renewable energy resources that are abundant in nature and are
replenished in a short period. These technologies have been in development for quite a while and yet
17
are still advancing.
2.1.3.1 Biogas
Biogas predominantly uses animal wastes and is concentrated in the rural population. However, in
recent days, large institutional biogas plants are also being built. Moreover, the commercial
production and sales of biogas have also begun. The data relating to the biogas were taken from
the AEPC. The capacity and number of biogas installed and its operation factor was collected for
residential, institutional, and community biogas. The potential biogas production was estimated
based on the number of livestock, potential waste production, and, biogas yield per kg of the
animal waste. The annual biogas yield was estimated at the provincial level.
2.1.3.2 Solar
Nepal is located in an advantageous location and high altitude topography, with slopes facing south,
receives ample solar radiation and is advantageous to harness solar energy. The average solar
radiation varies from 3.6–6.2 kWh/m2/day, and the sun shines for about 300 days a year. The
development of solar energy technology thus seems promising in many parts of the country.
As per the published report of AEPC, 2008 under Solar & Wind Energy Resource Assessment in
Nepal (SWERA), the commercial potential of solar power for grid connection is 2,100 MW. Nepal
has great potential for at least four types of solar energy technology: grid-connected PV, solar water
heaters, solar lanterns, and solar home systems. NEA, AEPC, and the local government are the main
sources of solar data. The grid-connected solar PV data have been based on NEA, while the off-grid
solar home systems, institutional solar PV systems, solar pumping systems as well as solar/wind
hybrid systems have been based on AEPC data. The solar thermal for water heating is based on the
status report of solar water heaters for AEPC, UNDP country profile as well as the department of
customs.
2.1.3.3 Wind
The wind is one of the clean energy sources abundantly available in Nepal but is yet to be
harnessed. There is a potential area of 6074 sq. km with a wind power density greater than 300
watts/m2. If 10% of the area is considered feasible for wind energy production, then Nepal has the
potential of 3,000 MW of wind energy at the rate of 5MW per sq. km as per the published report
of AEPC, 2008 under Solar & Wind Energy Resource Assessment in Nepal (SWERA). The study
also shows that the most potential areas lie in areas of the high and middle mountains of the country.
The commercially viable wind potential of the country is estimated to be only about 448 MW. Two
wind turbines each of 5 kW capacities with 2 kW of the solar hybrid system have been implemented
a n d supported by Asian Development Bank in Nawalparasi, Dhaubadi VDC apart from small
wind-solar hybrid system pilot projects in various places of the country. Nepal’s largest wind-solar
hybrid power system with an installed capacity of 20kW was completed in December 2017
providing electricity to 90 rural households. The cumulative installation of solar and wind mini-grid
systems by AEPC has been estimated to be 1262 kW till the fiscal year 2020/2021 (AEPC, 2021).
2.1.3.4 Mini/Micro and Pico Hydropower Plants

The hydropower stations for the generation of mechanical and electrical energy up to a capacity of 100
kW come under micro-hydro in Nepal. Till 2020/21, the total installed in various parts of the country
by the mini, micro, and pico hydropower projects is about 35.9 MW (AEPC, 2021).
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2.1.3.5 Others
Other energy resources include solid municipal wastes, industrial by-products like bagasse, secondary
wood sources like logging residue, sawmilling, furniture, small plants, crops, bushes, and so on. Data
related to the other mode of energy if available then the above stated shall be identified by the
respective authority for secondary data.
2.2 Sectoral energy demand calculation

The six major energy-consuming economic sectors include residential, commercial, industry,
transport, agriculture, and construction & mining. The sectoral energy consumption has been prepared
based on the following assumptions:
 Traditional energy consumption is based on the economic survey, clean cooking assessment
as well as urban and rural energy consumption patterns
 Renewable energy consumption is based on the number of installations and capacity
 Petroleum products and coal consumption is based on NOC sales, Department of Custom,
Department of Mines and Geology
 Electricity consumption is based on sales units as per NEA
 Household traditional energy consumption is based on per capita energy consumption
 Fuel consumption in transport is based on the number of registered vehicles in the country,
its operation factor, fuel economy, and annual vehicle kilometer travelled
 Commercial and agriculture energy consumption is based on gross value addition and energy
intensity
 Industrial energy consumption is based on the number of industries established and
manufacturing gross value addition and energy intensity
2.3 Preparation of data acquisition formats

The energy supply and consumption data were collected from different energy institutions. Different
institutions such as the Water and Energy Commission Secretariat (WECS), Ministry of Forest and
Environment (MoFE), Ministry of Agriculture and Livestock Development (MoALD), Department of
Forest and Soil Conservation (DoFSC), Department of Electricity Development (DoED), Department
of Custom (DoC), Alternative Energy Promotion Centre (AEPC), Timber Corporation of Nepal
(TCN), Nepal Oil Corporation (NOC), Nepal Electricity Authority (NEA), Independent Power
Producers’ Association Nepal (IPPAN), Federation of Nepalese Chamber of Commerce and Industry
(FNCCI), Central Bureau of Statistics (CBS), Ministry of Finance (MoF), etc were visited and a series
of interactions were conducted to collect the relevant information from those organizations. The
appropriate checklists, questionnaires, and formats were developed before having discussions and
interactions with these organizations.
2.4 Data collection

The data and information on each energy sector from different institutions and departments were
collected before data analysis.
1 Fuelwood supply and consumption data were collected from the Department of Forests and Soil
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Conservation (DoFSC), Timber Corporation of Nepal (TCN), User Groups (eg. Federation of
Community Forests User Groups Nepal), Forest Product Development Boards, and others
wherever applicable. Data were collected in a disaggregated form
2 Basic information and database of each renewable energy resource particularly the solar PV,
wind, biogas, biomass, micro-hydropower, improved cookstove, and other technologies by
years, number, capacity, and locations from related stakeholders such as the Alternative Energy
Promotion Centre (APEC), Solar Energy Association, Renewable Energy Confederation of
Nepal, etc. were collected
3 Data/ information on storage, import, and sale of petroleum products in Nepal for FY 2075/76,
2076/77, and 2077/78 were collected from Nepal Oil Corporation (NOC), Department of
Custom, Civil Aviation Authority of Nepal (CAAN)
4 Data/ information on indigenous production and import of different types of coal, charcoal, and
other energy forms in different years were collected from the Department of Mines and Geology
and the Department of Customs.
5 Data/ information on electricity generation, sale, and consumption by years and sectors from
relevant institutions such as the Department of Electricity Development (DoED), Nepal
Electricity Authority (NEA), Independent Power Producers’ Association of Nepal (IPPAN)
were collected. Also, the list of existing hydropower projects, potential projects, and projects in
the pipeline with capacity was obtained
6 Other supporting databases and information such as socio-economic, technical, and
environmental facts were collected from the concerned institutions as well as available literature
associated with the energy supply and consumption.
The data/information was collected in its original unit as developed by the concerned energy
institutions. The original/ natural units were converted into Giga Joule (GJ) and Tonne of Oil
Equivalent (TOE) units during the analysis of the data.
2.5 Data analysis

The collected data/information was analyzed to prepare the supply situation and consumption of
energy in the country. The data are presented in tabulated and graphics forms. Data have been analysed
for the following components:
1 Analysis of fuelwood supply and consumption by location and years
2 Estimation of the agricultural residues and animal waste based on the production
information of the agriculture crops and livestock numbers by different years.
3 Analysis of the production and generation information of each Renewable Energy resource
4 Analysis of the individual energy consumption in economic sectors (i.e. Residential,
Commercial, Industrial, Transportation, Agricultural, and Construction & Mining)
5 Analysis of energy consumption share of end-use by individual fuel type, and by economic
sectors
6 Analysis of energy pricing history of Nepal
7 Preparation of energy balance for three fiscal years FY 2075/76, 2076/77, and 2077/78.
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2.6 Reporting outline

The draft report has been prepared after analyzing and synthesizing the collected and compiled data
from different sources and organizations involved in the field of energy development and
conservation. The report has been prepared in the following outline form:
 Abbreviations
 Executive Summary
 Chapter 1: Introduction
 Chapter 2: Methodology
 Chapter 3: Energy Supply Situation in Nepal
 Chapter 4: Energy Consumption Situation in Nepal
 Chapter 5: Energy Indicators
 Chapter 6: Energy Pricing Structures
 Chapter 7: Energy Balance
 Chapter 8: Provincial Energy Synopsis
 Chapter 9: Conclusions
 References
 Annexes
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3 Energy Supply in Nepal
3.1 Energy supply system

Nepal's energy supply system has broadly classified the energy types by form of recourses and forms.
The resources that are replenished are categorized under Renewables while those that have limited
supply from nature are categorized as Non-renewables. The renewables are further divined into
conventional resources that are derived from organic matters and new renewables that includes
electricity generation system from hydro, solar, and wind. In conventional resources, traditional
energy resources include fuelwood from forests and tree resources, agricultural residues coming from
crops, and animal dung in the dry form. Traditional energy resources can, of course, be termed
biomass energy resources since it only covers the biomaterials for energy purpose. Energy resources
coming under the commercial or business practices are grouped into commercial energy resources
that particularly include coal, grid electricity, and petroleum products. Biogas, solar power, wind,
and micro-level hydropower are categorized as the alternative energy resources in Nepal. Such
resources are considered a supplement to conventional energy resources. This categorization has
seen minor updates this WECS’s reports. The latest WECS report on “Energy Consumption and
Supply Situation in Federal System of Nepal (Province No. 1 and Madhesh Province) in 2020/21
has categorized the energy resources as given in Figure 3-1.
Figure 3-1 Energy resources system currently being adopted in Nepal
3.2 Conventional Energy Resources

Forest resources
By definition, the forest is all land with a forest cover, i.e. with trees whose crown cover is greater
than 10%, not being used primarily for purposes other than forestry. The width of the stand must be
more than 100 m and the stand can include non-forest patches narrower than 25 m or smaller than 1
ha. Also, temporarily clear-cut areas that will be planted are considered a forest. The definition of a
shrub is similar to the definition of a forest except that a well-defined stem cannot be found. Globally,
over 1.6 billion (25% of the total global population) people depend on forests for subsistence,
livelihood, employment, and income generation (FAO, 2017). In Nepal over 65% population
particularly from poor families depend on forests for timber, fuelwood, and fodder (FRTC, 2019).
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The first national-level forest inventory in Nepal was carried out in the 1960s. Since then, several
forest resource assessments have been carried out, each different in terms of its purpose, scale, scope,
design, and technology used. The second national-forest inventory was carried out in the 1990s. FRA
Nepal (2010–2014) conducted by DFRS (2015) is the third and the most comprehensive national-level
forest resource inventory. According to the study, Forest covers 5.96 million ha, i.e., 40.36% of the
total area of Nepal. Similarly, Other Wooded Land (OWL) covers 0.65 million ha (4.38%) and Other
Land covers 8.16 million ha (55.26%). Within OWL, shrub covers 0.12 million ha (0.79%), and areas
with tree crown cover 5–10% cover 0.53 million ha (3.59% of the total area). Both Forest and OWL
together cover 6.61 million ha, 44.74% of the total area of the country.
Table 3-1 Forest areas by province
Total Area (ha) Forest area (ha) Districts included Municipalities covered
Province 1 2,589,283 1,134,250 14 137
Madhesh 886,771 263,630 8 136
Bagmati 1,905,308 1,090,880 13 119
Gandaki 2,134,732 817,290 11 85
Lumbini 1,778,451 974,380 12 109
Karnali 3,061,752 1,183,400 10 79
Sudurpaschim 1,906,270 1,147,110 9 88
14,262,567 6,610,940 77 753
(MOFE, 2020)
Figure 3-2 indicates the total land area distributed by land type in Nepal. It can be seen that the forest
area is stretched along east to west, and is concentrated in hilly regions, also ranging in terai as well
as high hill belts. According to DFRS (2015), the Bagmati Province of the country has the highest
total forest area (17.55%) while Madhesh Province has the lowest forest coverage area (4.37%).
(DFRS, 2020)
Figure 3-2 Land cover map of Nepal
Out of the total forest, 37.80% lies in the Middle Mountain physiographic region, 32.25% in the High
Mountains and High Himal, 23.04% in Churia, and 6.90% in the Terai indicating that majority of the
forest areas are found in Middle Mountain and High Mountain. Out of the total OWL, Terai, Churia,
Middle Mountains, High Mountains, and High Himal physiographic regions share 1.057%, 4.21%,
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5.52%, and 89.23%, respectively.
Figure 3-3 Proportion of Land Cover in each Physiographic Region
Out of the total forest of the country, 4.93 million ha (82.68%) lies outside t h e protected areas and
1.03 million ha (17.32%) inside the protected areas. Within the protected areas, the core areas have
0.79 million ha of forest and the buffer zones have 0.24 million ha of forest. Of the total forest inside
the core areas, the high mountains and the high Himal regions together have the highest share
(57.95%) and the middle mountains region has the lowest (2.10%).
Table 3-2 Forest Cover (ha) inside and outside the Protected Area by Physiographic Region
Physiographic region Outside PAs Protected Area (ha) Total

Core Area Buffer Zone
Terai 314,660 69,847 27,074 411,581
Churia 1,043,194 246,750 83,799 1,373,743
Middle Mountains 2,226,273 16,669 10,865 2,253,807
High Mountains & High Himal 1,345,309 459,240 118,360 1,922,909
National total 4,929,436 792,506 240,098 5,962,040
3.2.1.1 Community Forest

Community forest has covered nearly half of the total national forests in Nepal (MOFE, 2020). It is
the second-largest management regime after the government-managed forests. Figure 3-4 show the
community forest land in different provinces of Nepal. The Bagmati has the highest area of
community forest coverage (18.66) while Madhesh province has the least area of coverage (3.96%).
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Figure 3-4 Community Forest Coverage in different Provinces
3.2.1.2 Forest Cover Change

Table 3-3 presents the time series forest and shrub land area coverage of the country. The data
show the forest area in Nepal was in a decreasing trend from the 1960s up to the 2000s. A
recent study by DFRS (2015) revealed an increase in forest land coverage. In the study, the
forest area has been estimated to be about 40.36% of the total country area.
Table 3-3 Time Series Forest and Shrub Land Area of the Country
Year Forest Area Shrub Area Forest % Shrub %

(000ha) (000ha) Area Area
1960s 6078.9 388 41.14% 2.63%
1970s 5612.5 694.1 38.10% 4.70%
1980s 5518 706 37.42% 4.79%
1990s 4268.8 1559.2 39.60% 10.59%
2000s 3900 1753 26.50% 11.90%
2005s 3636 1897 24.70% 12.90%
2010s 5962.126 647.892 40.36% 4.39%
Similarly, Table 3-3 shows that the shrub land area is in increasing trend except in the recent study
of DFRS (2015). The shrub land area coverage increases from 2.63% in the 1960s to 12.90% in the
2005s has decreased to 4.39% in the 2010s.
3.2.1.3 Sustainable Wood and Fuel-wood Supply

According to DFRS (2015), Nepal has potential resources of about 1159.65 million tons of above-
ground air-dried biomass which is equivalent to 1054.20 million tons of above-ground oven-dried
biomass. High Mountain and High Himal physiographic regions contribute the highest amount of
biomass comprising about 45% of the total national figures. High Mountain and High Himal
physiographic regions are followed by Middle Mountain (27.84%), Siwalik (20.40%), and Terai
(6.74%).
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Table 3-4 Total above-ground air-dried and total above-ground oven-dried Biomass
(million tonnes)
Physiographic region Total above-ground air-dried Total above-ground oven-dried
biomass biomass
Terai 78.21 71.10
Churia 236.57 215.06
Middle Mountains 322.88 293.52
High Mountains and High 521.99 474.52
Himal
National total 1159.65 1054.20
(Source: DFRS (2015) and Calculation)
DFRS/FRISP (1999) has estimated that about 50.05% of the country’s total forest area is reachable.
The study further estimates the reachable (accessible) forest area for the then-different development
regions as 78.29%, 57.45%, 36.69%, 38.11%, and 52.20% respectively for EDR, CDR, WDR,
MWDR, and FWDR. Looking at the current political boundary, the values are adopted as 78.29%,
100%, 57.45%, 36.69%, 38.11%, 38.11%, and 52.20% respectively for Province 1, Madhesh
Province, Bagmati Province, Gandaki Province, Province 5, Karnali Province and Sudurpaschim
Province in the present analysis. Based on the data and calculations, the country has a total of 2.984
million ha of accessible forest area which accounts for 50.05% of the country’s forest.
Table 3-5 Sustainable Fuelwood Supply and Energy in 2014
Province Area in 000 ha Sustainable Wood Energy (GJ)

Forest OWL OL (million T) from Reachable
Total Reachable Total Reachable Total Reachable Forest OWL Total

Province 1 1,034.17 809.65 100.17 78.42 1,476.72 1476.723 3.04 0.05 3.09 51,759,239
Madhesh 260.76 260.76 2.87 2.87 695.34 695.34 0.98 0.00 0.98 16,411,934
Bagmati 1,046.21 601.05 44.67 25.66 939.43 939.425 2.25 0.02 2.27 38,048,744
Gandaki 739.60 271.36 99.55 36.52 1,429.16 1429.164 1.02 0.03 1.04 17,465,405
Lumbini 968.37 369.04 49.22 18.76 963.27 963.268 1.38 0.01 1.40 23,396,583
Karnali 902.82 344.06 215.52 82.13 1,828.31 1828.312 1.29 0.06 1.35 22,557,306
Sudurpaschim 1,010.21 527.33 135.90 70.94 831.26 831.262 1.98 0.05 2.03 33,939,709
Entire Country 5,962.13 2,984.04 647.89 324.27 8,163.49 8163.494 11.94 0.22 12.15 203,578,923
Similarly, DFRS/FRISP (1999) shows that about 12.15 million tons of fuelwood can be sustainably
extracted from the existing forest resources. This figure comprises 11.94 million tons per year from
forest areas and the remaining 0.22 million tons per year from other wooded lands. The results are
comparable with WECS (2010) but slightly on the lower side which estimation was 12.51 million tons
per year for the year 2008/2009. The annual energy potential of the sustainable fuelwood is estimated
to be 203,578,923.85 GJ. Furthermore, Province 1 has the highest sustainable annual fuelwood yield
(25.42%) while Madhesh province contributes the lowest sustainable annual fuelwood (8.06%) as
shown in Figure 3-5.
Table 3-6 and Figure 3-5 depict sustainable fuelwood production for different provinces along with
different physiographic regions. The results show that the Mid-Hills of all provinces (except Madhesh
province) have a higher contribution of potential sustainable fuelwood supply from the forest area.
Mid hill region of Sudurpaschim Province is expected to contribute about 10% of the country’s total
sustainable fuelwood supply. This is followed by the mid-hill of Province 1 (8.87%). On the other
26
hand, High Mountain of Province 1 has the highest contribution of sustainable fuelwood supply at
t he provincial level which is believed to contribute about 9.92% of the country’s total potential.
Figure 3-5 Proportion of Sustainable Annual Wood Yields in Provinces
Table 3-6 lists the sustainable fuelwood supply potential in different provinces along with their energy
potential. It indicated that Province 1 has the highest energy potential from the sustainable supply of
fuelwood while Madhesh Province has the least.
Table 3-6 Sustainable Wood and Energy Supply in different Provinces of various Physiographic Regions
Province Sustainable Wood Production (million Ton) Total
Energy
Churia Terai Mid Hills High Mountain
(million
Forest OWL Total Forest OWL Total Forest OWL Total Forest OWL Total GJ)
Province 1 0.249 0.004 0.254 0.502 0.009 0.511 1.078 0.019 1.098 1.206 0.021 1.228 51.759
Madhesh 0.155 0.000 0.155 0.823 0.002 0.824 - - 16.412
Bagmati 0.530 0.004 0.534 - - - 0.823 0.006 0.829 0.902 0.007 0.909 38.049
Gandaki 0.048 0.001 0.050 0.025 0.001 0.025 0.944 0.023 0.968 - - - 17.465
Lumbini 0.421 0.004 0.425 0.287 0.003 0.290 0.675 0.006 0.682 - 23.397
Karnali 0.065 0.003 0.067 - - - 0.505 0.022 0.527 0.721 0.032 0.752 22.557
Sudurpaschim 0.197 0.005 0.202 0.337 0.008 0.345 1.209 0.030 1.239 0.235 0.006 0.241 33.940
Entire
1.665 0.022 1.686 1.974 0.022 1.996 5.235 0.107 5.342 3.064 0.066 3.130 203.579
Country
Similarly, Figure 3-6 depicts that in Province 1, the largest amount of sustainable fuelwood
can be supplied from the mid-hill forest and mid-hill OWL. Similar is the case for other
provinces, except Madhesh Province, where there is no hilly region and more than 80% of
fuelwood potential is from the forest and the rest from OWL.
27
Figure 3-6 Proportion of different Provinces with different Physiographic Regions in Sustainable Annual
Wood Yields
3.2.1.4 Community Forest Contribution to Sustainable Wood Supply in 2014

According to DFRS (2015), the annual sustainable fuelwood from community forests for the entire
nation is 4.53 million tons. The highest value of annual sustainable fuelwood supply has been
observed in Province 1 with the value of 1.58 million tons per year while the lowest value was
observed in the Madhesh province (0.29 million tons).
Table 3-7 Annual Sustainable Fuelwood Supply and Energy by the Community Forest in 2014
Province Area (000 ha) Sustainable Energy (GJ)

Forest Reachable wood (million ton)
Province 1 536.68 420.17 1.58 26,391,873.88
Madhesh 77.64 77.64 0.29 4,876,954.71
Bagmati 374.80 215.32 0.81 13,524,931.69
Gandaki 233.59 85.70 0.32 5,383,219.72
Lumbini 394.88 150.49 0.56 9,452,519.01
Karnali 316.30 120.54 0.45 7,571,648.42
Sudurpaschim 265.09 138.38 0.52 8,691,877.17
Entire Country 2,198.99 1,100.59 4.53 75,893,024.59
At the national level contribution of the community forest to the annual sustainable wood, supply has
been estimated to be about 37.28% of the total sustainable fuelwood supply. At the provincial level,
Province 1 has the highest contribution of the CFs to the total sustainable wood supply of the province
(51%). Similarly, Sudurpaschim province has the lowest contribution of CFs to the total sustainable
wood supply of the province (25.61%).
28
Figure 3-7 Community Forest Contribution to Sustainable Annual Wood Yields
The fuelwood sales trend remains nearly constant for over a decade, however, had taken a peak in
2017 (Figure 3-8).
(Bhatt, et al., 2021)

Figure 3-8 Fuelwood sales trend
Table 3-8 indicates that the sales of fuelwood supply are highest from Karnalu Province where the
peaked in Bagmati province, specifically Makawanpur district, surpassing the old stock and
production. Meanwhile, Karnali province neither has sales nor production.
29
Table 3-8 Supply of forest products by each Province in 2075/2076

1
(In chatta )
Province Fuelwood (Except household-level private
Percent
consumption)
Province 1 3580 7.67
Madhesh 6197.07 13.28
Bagmati 4429.05 9.49
Gandaki 2320.65 4.97
Lumbini 4964.23 10.64
Karnali 24374.00 52.22
Sudurpaschim 805.00 1.72
46,672.00 100
(DoF, 2015)
It can be seen from Table 3-9 that TCN is not active in sales of fuelwood. In 2017, DFPSB is the
largest seller of fuelwood. The production and sales are mainly from Terai and inner Terai districts
Table 3-9 Status of Fuelwood Productions and Sales in the Fiscal Year 2073/74 by authority
Authority Old Stock (from 2072/073) Production in 2073/74 Total Sales

TCN 161 34 194 4
DFO 500 271 770 314
DFPSB 39 18 58 78,814
700 322 1,022 79,132
In addition to TCN, DFO, and DFPSB, there are sales of fuelwood from community forests and private
forests as well (Table 3-10). The largest amount of fuelwood came from the private forest. However,
the demand for fuelwood seems to have dropped substantially in an adjacent year later.
Table 3-10 Sales of fuelwood from community forest and private forests
(In chatta)
2016 2017
Community forest 705.16 394.59
Private forest 6460.33 2055.23
Agricultural Residue
The agriculture residue supply potential was estimated based on the methodology described in section
2.1.1. As per WECS 2010, the total potential supply in 2008/09 was 19 million tons of agri-residue
and 243 million GJ of energy. The total potential supply of residue in 2021 was estimated to be 26
million tons. The total agricultural residue production in 2019 was 23 million tons, which grew slightly
from 24 million tons in the previous, at the rate of 3%, This could be the result of the lower production
rate during pandemics. Meanwhile, the after-effects of the pandemic went down, it rose at the rate of
6% from the previous year as seen in Figure 3-9. The 2021 production was estimated based on five-
year production where paddy grew at 7% per annum and is the major agricultural product with more
1
1 chatta = 20x5x5 ft (14.15 cu.m.) weighs 10.47 tons on average (Subedi, et al., 2014)
30
than 50% share. It can be seen that the Terai region has the most potential for agri-residue production
with the share of 48% of total supply potential followed by the hilly region (35%) and the lowest
potential in the Mountainous region (18%).
The provincial agri-residue supply potential shows that Province 1, Madhesh, and Lumbini provinces
have a high potential supply of agri-residue with a share of 22%, 19%, and 19% respectively. Bagmati
province contributes 13% of the total supply potential followed by Gandaki and Sudupashchim with
10% and 11% share and Karnali province with the least supply potential of 6%.
Figure 3-9 Status of agricultural residue production
It can is seen from Figure 3-10 that the energy potential from agricultural residue also grows similarly
to the production. The equivalent potential energy from the agri-residue was 442 million GJ in 2021
which were 406 million GJ and 416 million GJ in 2019 and 2020 respectively (Figure 3-10). The
growth rates of production and energy potentials are slightly different, primarily because of variation
in the production of different crops and different regions. As a result, the energy potential share from
agri-residue is a bit higher for the Terai region, while looking at the provincial level, the same share
is higher in Madhesh Province as it fully lies in the Terai region. Karnali and Gandaki have the least
amount of agri-residue energy potential due to lower production in the barren remote lands lying in
the northern geography.
31
Figure 3-10 Energy potential from agricultural residue
The detailed data are given in Annex II
Animal waste
The animal waste supply potential was estimated based on the methodology described in section 2.1.1.
As per WECS 2010, the total potential supply in 2008/09 was 15 million tons of dry dung. The
livestock considered for animal waste production is cattle and buffalo. In 2019, there were 7.3 million
cattle and 6.9 million buffalo (including milking buffalo). The dry dung yield from the livestock was
estimated to be 6.8 million tons in 2019 considering the accessibility and collection efficiency of 70%.
The lower value compared to 2010 is due to the difference in conversion units, the present value is
based on the latest study in Nepal (Adhikari & Denich, 2019). This potential grew at only 0.35% in
2020 (6.84 million tons). However, in 2021, with the effect of the pandemic being lower, it is
approximated to be about 6.9 million tons in 2021 at a cumulative growth rate of 1.12% (Figure 3-11).
32
Figure 3-11 Status of animal waste production
Meanwhile, the energy potential from the dry dung was about 101.6 million GJ in the year 2019,
which grew to 102 million GJ in 2020 and 103 million GJ in 2021. Region-wise, the Terai has the
highest potential in animal dung production, indicating the highest potential for the intervention of
biogas plants which are also favored by warmer days throughout the year than in the mountain region.
The livestock farming pattern in mountain regions and its size already give lower potentiality for the
intervention of biogas in the mountainous region. The installation and operation of a biogas plant in
the mountain region are further challenged by the cold temperatures as well as the remoteness of the
area.
Figure 3-12 Energy potential from animal waste (dry dung)
The detailed data are given in Annex IV.
33
Other Energy Sources

There are other potential energy sources other than the above-mentioned resources. These are either
non-conventional or are not easily traceable. Some of these types of sources are logging residue, wood
mills, carpentry, crafting industries, and some food manufacturing industries, like sugarcane
processing as well. The logging residue depends highly upon the size of the log, quality, type of
sawing process, and product required. Similarly, the wood mills and crafting industry also cannot be
traced and accounted to a standard baseline. WECS (2010) reported 50% residue generation with 60%
recovery factor. Thus for a ton of log produced 300 kg of logging residue can be collected.
Bagasse could be another energy source. It is a waste product of sugarcane processing. However, it
has the potential to be used for energy co-generation as heat and electricity with high efficiency in
sugar mills. The yearly production of sugarcane on average has been around 3 million tons in the past
decade. In the last three years, it can be seen that the production has slightly reduced, which could be
the impact of Covid lockdowns. However, it can be expected to grow again this year reaching around
3.6 million tons (Figure 3-13). It is also evident that Madhesh province, with the largest Terai plain
land, has the largest production followed by Sudruapschim and Lumbini provinces, while Karnali and
Bagmati provinces have the least. Taking 34% of bagasse production from sugarcane, approximately
1.2 million tons of bagasse can be extracted in 2021 (Pokharel et al, 2014).
Figure 3-13 Sugarcane and bagasse production
3.3 Modern Renewable Energy Resources and Technologies

Solar
Nepal has a huge potential for solar energy. On average, there are 300 sunny days per year and 6.8
sunshine hours per day (Poudyal, et al., 2019). As shown in Figure 3-14, the northwest part of the
country receives global horizontal irradiation reaching up to 5.5 kWh/m2/day while the southern
regions receive average GHI in the range between 4.4 kWh/m2/day and 4.9 kWh/m2/day. The specific
solar PV electricity output capacity of the country lies between 1400 kWh/kWp and 1600 kWh/kWp
(equals to average daily totals between 3.8 and 4.4 kWh/kWp). The mountain region has higher PV
energy yield potential because of high elevation and low air temperature. Therefore, the hills and
lower-elevation mountains with good GHI and lower temperatures are the best regions to develop
solar PV systems in Nepal (World Bank, 2017). According to the Solar and Wind Energy Resource
Assessment(SWERA) by the Alternative Energy Promotion Centre (AEPC), the commercial potential
on-grid solar PV system in Nepal is estimated to be 2,100MW (UNEP/GEF, 2008). Similarly, almost
25% of the area of Nepal is suitable for CSP systems. Even if only 2% of the best solar irradiance is
used for the power generation of 1829 MW of electricity can be generated.
34
Source: SolarGIS
Figure 3-14 Global Horizontal Irradiation - a long-term average of daily and yearly totals.
AEPC has been the central government body for dissemination of the solar technologies all over
Nepal. To date, there have been about 961 thousand residential Solar PV systems installed. The largest
number of SHS have been installed in remote districts of western Nepal, and the access to grid
electricity is poor. The number of SHS installations is on an increasing trend however the pace of
installment has been affected by the earthquake and trade debacle after 2015. In addition to that, the
end of load shedding also slowed down the demand in 2017. However, it has taken pace in 2017 and
2018. It again took a little impact due to COVID pandemic restrictions all over the nation in 2020.
Observing the installation of SHS by the administrative division, it can be seen that the largest number
of SHS are installed in hilly regions, while Terai and mountain regions have the lowest. Almost all
parts of Terai have the access to the national grid, and also have easy access to cheap alternatives to
lighting. On other hand, the mountain region is very remote for the technology to reach. In that
contrast, the accessible parts of hilly regions, but without access to the grid have the highest number
of installations, which can be seen in Figure 3-15. The hilly regions of Lumbini and Karnali have the
highest number of SHS. This pattern holds for all other provinces with districts in the hilly region.
Province Installed Share
Province 1 14.6%
Madhesh 3.7%
Bagmati 12.4%
Gandaki 5.4%
Lumbini 22.3%
Karnali 24.0%
Sudurpashchim 17.5%
Region Installed Share

Terai 15.1%
Hill 68.5%
Mountain 16.4%
Figure 3-15 Installation of solar home systems until 2021
Figure 3-16 shows the distribution of ISPS installed in each province. It can be seen that the largest
number are in Karnali, Sudurpaschim, and Province 1, which have lower access to grid electricity but
also have hilly districts. However, capacity-wise, the total system capacity in Bagmati provinces
35
surpasses all followed by Karnali and Sudurpaschim. It can be understood that, in Bagmati province,
most of the systems have a larger capacity per system than in other provinces. The average capacity
of total installations comes around 1.76 kWp per system, whereas for Bagmati it is 2.83 kWp per
system, while the lowest is in Sudurpaschim with 1.47 kWp per system.
Province 1 18.1%
Madhesh 4.0%
Bagmati 15.6%
Gandaki 7.0%
Lumbini 12.1%
Karnali 22.9%
Sudurpashchim 20.3%

Terai 11.2%
Hill 55.6%
Mountain 33.3%
Figure 3-16 Installation of Institutional Solar PV Systems until 2021
Meanwhile, the geography-wise distribution indicates that the hilly region has the largest number and
capacity of ISPS installed, in addition to SHS. However, the ISPS installed in the Terai region is seen
to have a larger capacity per system with an average of 2.14 kWp per system, while they are 1.90 kWp
per system and 1.41 kWp per system for Hills and Mountains respectively. It can be understood that,
with good access to roads and services, the system capacity can be larger, thus indicating the hurdle
in the installation of larger systems in remote areas of Nepal.
Photovoltaic Pumping Systems (PVPS) for drinking water are installed mostly in hilly belts as seen
where people need to travel over a long distance for drinking water supply. Figure 3-17 shows the
installation status of the Photovoltaic Pumping System (PVPS) for the drinking water and irrigation
system.
Figure 3-17 Installation of solar drinking water and irrigation systems until 2021
The largest number of PVPS for drinking water has been installed in hilly areas of Province 1 followed
by Lumbini and Karnali provinces (Table 3-11). In the lowlands of Terai, where shallow boring is
enough, it is least installed. Geography-wise also we can see the hilly region has the largest number
of PVPS for drinking water installed, while there are some installed in very few districts of the
mountain region.
The majority of PVPS for irrigation has been installed in districts in the Terai belt, along with very
few in hilly, and the least number in the mountain region. It can be observed that, as opposed to
previous solar PV systems, the number of PVPS installed is highest in the Terai plains – which are
36
the major agricultural area of Nepal. It can be seen from Table 3-11 that nearly 90% of the PVPS for
irrigation has been installed in the Terai area. Although this system is gaining popularity in hilly areas
as well, only 9% of the total systems are installed in hilly districts where the source of water is not far
or the water table is not too deep. Province-wise data also indicates the same pattern – the Madhes
Province with Terai plains has the highest number of PVPS for irrigation, followed by Lumbini and
then Province 1.
Table 3-11 Installation of solar drinking water and irrigation systems until 2021
Solar Drinking water system Solar Irrigation System
Province Installed Share Province Installed Share

Province 1 20.9% Province 1 16.7%
Madhesh 1.6% Madhesh 45.4%
Bagmati 14.4% Bagmati 11.6%
Gandaki 14.4% Gandaki 0.4%
Lumbini 19.8% Lumbini 21.0%
Karnali 17.6% Karnali 0.6%
Sudurpashchim 11.2% Sudurpashchim 4.1%
Region Installed Share Region Installed Share

Terai 3.2% Terai 89.4%
Hill 92.5% Hill 8.7%
Mountain 4.3% Mountain 1.8%
In addition to small isolated systems, in recent years. Large utility-scale plants are also being
constructed and some are in operation. NEA operates about 1.35 MW plants while IPPs operate about
21 MW of solar plants. More projects are in pipeline with construction licenses and survey licensees.
The list of the projects is given in Annex V.
Micro and Pico hydro

Micro-hydro and pico hydro are small scare the hydro-power system that generates electric power
below 100 kW and 1 kW capacity respectively. Pico hydro includes Peltric Sets and also technologies
that use Pelton Turbine (low discharge and high head), Cross flow Turbine, and other technologies
(high discharge and low head) depending on available discharge and head. These majorly serve
nearby households through a local, decentralized, isolated mini-grid. These small hydro plants have
been the more practical and cost-effective solutions for providing electricity in the rural and remote
areas where extension of the national grid has been a challenge.
Nepal has immense hydropower potential. After the government started subsidizing the micro-hydro
power plants in 1981, the development of micro hydropower gained a pace as a mechanism for rural
electrification. As of 2018, the installed micro-hydropower plants have contributed up to 38 MW
including pico-hydropower plants. Nepal has the potential to develop more than 50 MW of
hydroelectricity from micro-hydropower plants. Recently in 2014, NEA approved a technical standard
draft prepared by NEA and AEPC for the effective integration of Micro hydropower plants into the
grid. Although the grid integration of MHPs into the national grid was mandated by the Electricity
Act 1992, the first successful grid integration of 23kW MHP came into action only in 2018. As of
2020, four MHPs of a total 253kW have been integrated into the national grid while several are under
study. AEPC has been coordinating with different stakeholders along with local communities to allow,
facilitate, and create a conducive environment for the development of Micro and Pico hydro.
The majority of the MHPs are concentrated in mountain and hilly regions due to the availability of
water sources in these areas. The districts in Terai, do not have the required parameters of MHP. i.e.
enough water flow and elevation/head, they are least installed. The provincial statistics show
provinces 1, Bagmati, and Gandaki have the largest numbers of MHP installed, while the Madhesh
37
province has none due to low lands and comparatively easier access to electricity. More than 1,800
MHPs provide electricity to 344 thousand households in the remote areas of Nepal. The capacity of
MHP comes around 19 kW per project, and it is highest in Karnali and Sudurpaschim due to favorable
environments such as water flow and high head.
Province 1 24.3%
Madhesh 0.0%
Bagmati 14.0%
Gandaki 20.7%
Lumbini 8.4%
Karnali 14.4%
Sudurpashchim 18.2%

Terai 1.0%
Hill 64.4%
Mountain 34.6%
Figure 3-18 Installation of micro-hydro systems until 2021
Improved Water Mill (IWM) is a transitional technology that was put upon as an alternative to increase
the efficiency of Traditional Water Mills (TWMs). Replacement of wooden parts (rotor and shaft)
with metallic parts resulted in increased energy outputs well as efficient mechanization, helping both
the millers and their users. Two types of IWMs are in practice: short shaft solely for grinding, and
long shaft for grinding and other end uses such as paddy hulling and husking, rice polishing, saw-
milling, oil expelling, lokta beating, chiura (flattened rice) making, and a number of others as per the
need. IWM has been providing services to households at a cheap investment and maintenance cost
within a short period required for the construction work. IWMs have also been used to generate
electricity up to 3-5 kW, sufficient for lighting and operating small electric and electronic devices -
suitable for remote small clustered hamlets. Improved water mills, like MHP, are distributed along
the mountain and hilly regions while there are nominal to none in Terai plains and the regions of
developed districts
Province-wise, the IWM is concentrated around Bagmati followed by Karnali and Sudurpaschim,
while there are low numbers in other provinces. It is also well evident that the system is more often
installed in hilly regions and mountain regions than in Terai, due to geographic and hydrological
conditions in the higher terrains.
Province 1 3.2%
Madhesh 0.0%
Bagmati 56.5%
Gandaki 1.8%
Lumbini 3.3%
Karnali 18.9%
Sudurpashchim 16.3%

Terai 1.3%
Hill 72.5%
Mountain 26.3%
Figure 3-19 Installation of IWM until 2021
38
Biogas
Biogas is produced from organic matter as methane gas generated during the anaerobic digestion of
organic matter. The manure of domestic animals (oxen and cows, buffaloes, etc), and human
waste/excreta are the primary feeding material/source for this biogas system. The slurry comes as a
by-product of this system and is looked upon as an effective organic and sustainable alternative to the
use of chemical fertilizer which ultimately has saved money and maintained the clean and green
surroundings/environment.
Nepal is an agricultural country with 60.4% of the total population engaged in this sector (MoF, 2021).
The massive amount of biomass produced by livestock and farming activities makes biogas a suitable
technology for cooking for a large population. The number of households with the potential for
installation of a household biogas system is about 1.9 million, which represents about 42% of the total
households in Nepal. A recent study by Adhikari and Adhikari (2021) has concluded the biogas
potential and fuelwood saving per household is presented in Table 3.7.
Table 3.7: Annual biogas production and fuelwood saving potential of Nepal
Mountain Hill Lowland

Annual per capita fuelwood consumption (kg/year) 712 598 482
Annual per capita biogasa requirement (m3/year) 155 130 106
Annual net weight of fresh dung (kg/household/year) 3501 5386 7669
Average household size (number of people) 5.8 4 4.3
Annual potential biogas production (m3/household/year) 22 49 64
Weight of per capita saving of fuelwood (kg per capita) 101 224 292
Percentage share of saving of fuelwood (%) 14 37 60
1m3 biogas = 4.57 kg fuelwood ;
1 kg fresh dung = 0.036m3 biogas
GoN has been promoting biogas plants of different capacities under this system, such as 2cu.m, 4cu.
m, 6cu. m, and 8cu. m plants under domestic biogas plants. For those plants, GGC 2047 and the
modified design of GGC 2047 are being implied. The domestic biogas plant is popular and applicable
in almost every district. Manang, on contrary, is much more remote and has less favorable conditions
for the biogas plants. However, the majority of the plants are distributed along Terai and hilly belts.
At the provincial level, Bagmati has the largest number of residential biogas plants installed, followed
by Gandaki, Lumbini, and Province 1 (Figure 3-20). Furthermore, by geographic region, it can be
seen that almost all biogas plants are installed in Terai followed by the hilly region. This is because,
Terai and hilly regions have an ample amount of feedstock being produced on one hand, while on the
other, biogas requires a warm temperature to operate while also requires skilled manpower and
building materials, which are comparatively easily available in Terai and hilly regions.
The biogas plants more than 12 cu. m. capacity falls under the Large Biogas Plant category. It is the
advancement in Nepal's biogas technology achieved via the long-term practices on the modified GGC
2047 model and the learning from the international technological practices. The large biogas system
includes the varieties of plants under its specific categorization including institutional, community-
level biogas systems to commercial ones
39

Province 1 15.50%
Madhesh 6.30%
Bagmati 25.88%
Gandaki 18.88%
Lumbini 18.85%
Karnali 1.48%
Sudurpashchim 13.11%

Terai 51.99%
Hill 46.05%
Mountain 1.96%
Figure 3-20 Installation of domestic biogas plants until 2021
Although the potential for large-scale biogas plants is ample, from various organic matters including
municipal wastes, these plants have not been installed in large numbers. Like residential biogas plants,
these large biogas plants are also concentrated in Terai and hilly districts. Province wise largest
number of large biogas plants are built in province 1, followed by Bagmati and Gandaki provinces.
The commercial sector is quite active in these provinces, in addition to proper solid waste management
is in place.
Province 1 39%
Madhesh 6%
Bagmati 24%
Gandaki 24%
Lumbini 7%
Karnali 0%
Sudurpashchim 1%

Terai 52%
Hill 47%
Mountain 1%
Figure 3-21 Installation of large biogas plants until 2021
Most of these large biogas plants are institutional. However, a few biogas plants have been built at a
commercial scale like 4,200 m3 plants in Pokhara, 3,750 m3 plants in Nawalparasi, and 3,500 m3
plants in Syangja.
Wind
Wind power is the conversion of wind energy into electricity using wind turbines. The development
of wind energy systems is accelerating at an unprecedented pace around the world, with the amount
of electricity generated by wind increasing by almost 170 TWh (+11%) in 2020. Currently, 1592 TWh
of electrical energy is generated from wind globally, which is almost as much as all the other
renewable energy technologies combined (IEA, 2022).
3.3.2.1 Potential
AEPC has conducted a wind resource assessment of Nepal at 50m agl with a resolution of 5km. The
report has shown more than 300 Watt/m2 wind power density in Mustang and Solukhumbu, between
200-250 Watt/m2 in Humla and Sankhuwasawa, between 150-200 Watt/m2 in Myagdi and Manang,
and between 100-150 Watt/m2 in Bajhang, Darchula, Dolakha, Dolpa, Mugu, and Taplejung districts.
The remaining districts have a wind power density of less than 100 Watt/m2. Generally, wind power
40
densities less than or equal to 100 Watt/m2 are not useful for wind energy harnessing. WPD greater
than 200 Watt/ m2 is normally taken into consideration for non-grid connected power generation while
greater than 300 Watt/ m2 is considered for grid connectivity of wind energy systems in developing
countries. Considering only 10% of the area of Nepal having WPD of 300 Watt/m2 for wind energy
generation, Nepal has the potential of producing 3000MW of electricity from wind (UNEP/GEF,
2008).
Recently, the World Bank has also conducted a wind resource mapping of Nepal using a new and
more sophisticated model known as Weather Research and Forecasting (WRF) model. The
distribution of the mean annual generalized wind power density of Nepal at 100 m a.g.l. from WRF
simulation at 3 km × 3 km grid spacing for the period 2004/08/4 to 2013/08/14 is shown in the figure
below (World Bank, 2016).
at 100 m a.g.l. from WRF simulation at 3 km × 3 km grid spacing for the period 2004/08/4 to
2013/08/14 inclusive
Figure 3-22 Mean annual generalized wind power density for Nepal.
Despite the huge potential, there has been no significant development of wind energy in Nepal. The
Nepal Electricity Authority (NEA) installed two wind turbines of 10 KW in Kagbeni, Mustang in
1989, which got destroyed within three months of project commencement (Ghimire & Poudel, 2010).
As of 2018, the wind turbines installed in Nepal had a total generation capacity of 113.6 kW
comprising the 65 kW wind turbines provided by the AEPC, 3.5 kW wind turbines provided by
Practical Action, and 45.1 kW wind turbines provided by the private sector (Poudyal, et al., 2019).
AEPC has installed two wind turbines each of 5 kW capacities with 2 kW of solar hybrid system with
the support of the Asian Development Bank in Nawalparasi, Dhaubadi VDC. It has also established a
wind-solar hybrid system of 400 watts with 150 watts solar power projects in six different sites. More
than 19 households of Dalit in Pyuthan including one Mosque and two secondary schools; one in
Pyuthan and one in Palpa was directly benefitted from these microsystem projects. In the fiscal year
065/66 two more wind turbines had been added to Haibung VDC of Sindupalchock. More than 29
households benefited from this project (AEPC, 2022). In 2017, AEPC in collaboration with ADB
installed a wind-solar hybrid system comprising 20 kW wind turbines and 15 kW peak solar panels at
Hariharpurgadi village of Sindhuli district. The project served 83 rural households by producing 110
kWh energy per day to meet the demand of 87 kWh per day (ADB, 2017). The total solar-wind hybrid
mini-grid system reached 1500 kW (SEMAN, 2022). Furthermore, there are various wind energy
projects at various stages of construction as listed below.
41
Table 3.6: Wind energy projects at various stages of construction
SN Project Capacity Promoter VDC/District

1 Kagbeni Wind Energy 1 MW Everest Wind Energy Pvt. Ltd. Kagbeni (Mustang)
Project
2 Wind Electric Power Tangbe 1 MW Everest Wind Energy Pvt. Ltd.
3 Mustang Wind Project 3MW Future Wind Power Pvt. Ltd Jomsom (Mustang)
(AEPC, 2022)
Organic Municipal Waste

Organic municipal waste can be used for energy generation via waste-to-energy technologies. Waste-
to-energy is the process of generating electricity and/or heat by processing waste. As the amount of
waste generated and the energy requirement increases with the increasing population, waste-to-energy
presents itself as a renewable source of energy to ensure energy security.
In FY 2075/76 a total of 15581.9 mt of organic waste was generated in the metropolitan cities, sub-
metropolitan cities, and municipalities of Nepal (CBS, 2021a). According to research, Kathmandu has
the potential of producing 1,745 MWh of electricity from waste, Lalitpur Sub Metropolitan City has
the potential of 278 MWh, and Pokhara has the potential of producing 244 MWh of electricity from
waste (Sodari & Nakarmi, 2018). According to a recent study, 130294 m3 of biogas can be generated
by utilizing 100% of the organic fraction of municipal solid waste(OFMSW) in Kathmandu. The
biogas produced can be used to fill up 21,045 LPG cylinders per day which can save NRs 515 million
(Lohani, et al., 2021).
In 2017, a bio-methanization plant was set up in Teku, with the support of the European Commission
and the government of Nepal, and has a daily capacity to convert 3 tons of OFMSW into biogas.
However, after the initial months of operation, the plant has stopped functioning due to managerial
and technical reasons (Lohani, et al., 2021). A waste-to-energy plant has also been established in
Pamara, Dharan Sub-metropolitan with the capacity to process 30 tons of municipal waste per day.
Apart from producing bio-CNG, the plant also produces 6.5 tons of organic fertilizers daily (AEPC,
2021).
As per the 2020 report on Waste Management baseline study by CBS, it has been estimated that
annually around 2,200 tons of waste are collected per municipality totaling 6 million tons of waste.
Composition-wise, organic content was found to be around 54% while the source of the waste was
found to be the household sector. The average organic waste per municipality thus amounted to about
1,200 tons. On average 9.9% of the waste collected is used for manure making while 14% is recycled.
The rest of the waste is dumped at the landfill, riverside, or openly and nearly 32% of the waste is
burnt. These can be a very resourceful energy generation feedstock. The average quantity of waste
collected from different sources and municipal categories is given in Annex VI.
3.4 Commercial Energy Resources

Electricity
3.4.1.1 Hydropower Potentials in Nepal
Nepal's theoretical hydropower potential has been estimated at 83,000 MW and its technically and
economically feasible potential of about 45,000 MW and 42,000 MW respectively (Shrestha, 1966).
42
A study by Bajracharya (2015) shows the total theoretical estimation of annual mean flow to be
103,341 MW (Table 3-12).
Table 3-12 Theoretical potential of hydropower in Nepal
River Basin Shrestha (1966) at 80% efficiency Bajracharya (2015)

Koshi 22,350 35,166
Narayani 20,650 32,086
Karnali 32,010 25,755
Rest of small basin 8,171 10,334
Total ROR potential 83,181 103,341
The recent study carried out by WECS (2019) for the estimation of hydropower potential shows the
gross hydropower potential of 72,544 MW from three river basins: Koshi, Gandaki, and Karnali basin
which covers 94% of the total gross potential of the country. Gross hydropower potential distributions
in provinces based on the major three river basins are shown in Table 3-13. Province-1, which includes
most of the Koshi basin incorporates the highest hydropower potential (22,619 MW)- which is 31.2%
of total hydropower potential. Province-2 incorporates the lowest hydropower potential (275 MW)-
which is 0.4% of the total potential. Similarly, Bagmati, Gandaki, Lumbini, Karnali, and
Sudurpaschim provinces incorporate 14.6%, 20.7%, 3.7%, 18.9%, and 10.6% of the total potential
respectively.
Table 3-13 Distribution of gross hydropower potential among different provinces based on 3 major river
basin
SN Province Power Potential (MW) % of Basin Potential (MW)

1 Province 1 22,619 31.2
2 Madhesh 275 0.4
3 Bagmati 10,568 14.6
4 Gandaki 14,981 20.7
5 Lumbini 2,677 3.7
6 Karnali 13,702 18.9
7 Sudurpaschim 7,722 10.6
Total 72,544 100
3.4.1.2 Development Hydropower Projects by NEA

Nepal Electricity Authority is the sole organization responsible for the operation and distribution of
electricity supply in the country. As per NEA 2021, the total installed capacity developed by NEA
stands at 582 MW. NEA’s hydropower plants including small power stations generated a total of
2,810.74 GWh of electricity in FY 2020/21, a slight decrease of 6.96 % over the generation of 3021.04
GWh in FY 2019/20. As of June 2022, the peak demand is 1864 MW whereas the national demand is
1664 MW, and the remaining is exported to the neighboring country.
In addition to NEA’s generation, the Independent Power Purchasers (IPPs) significantly contribute to
the national hydropower plants’ development. As of February 2022, The total installed capacity from
IPPs stands at 1,440 MW. In addition, there is 53.4 MW addition from thermal power plants and 49.76
MW from grid-connected solar power plants. The total installed capacity thus reached 2,205 MW by
February 2022.
43
Table 3-14 Total hydropower plant installations
2019 2020 2021 2022*

Province 1 136.2 237.6 280.0 327.0
Madhesh - - 13.0 21.0
Bagmati 400.9 456.0 472.0 1,016.0
Gandaki 519.8 511.0 529.0 565.0
Lumbini 22.1 22.0 31.0 31.0
Karnali 6.3 11.0 11.0 11.0
Sudurpaschim 43.4 52.0 52.0 52.0
National 1,128.7 1,289.6 1,388.0 2,023.0
*Till February 2022
The province-wise NEA-developed, hydropower plants projects are given in Annex VII
3.4.1.3 Under Construction, Planned, and proposed Hydropower Projects by NEA

The total under-construction hydropower projects under NEA stand at 487.1 MW. Similarly, the
planned and proposed hydropower projects under NEA stand at 3,219.2 MW. Province 1 has the
highest capacity with 1696 MW followed by Gandaki (1212.2 MW), Susurpashchim (210 MW), and
Bagmati (95 MW).
3.4.1.4 IPP Constructed Hydropower Projects

Independent Power Producers (IPPs) have been playing a vital role in the development and operation
of small and medium-scale hydropower projects since the hydropower development policy (MoWR,
2001). The total power purchased from Independent Power Producers (IPPs) within Nepal was 3,241
GWh, an increase of 8.36 % from the figure of 2,991 GWh in FY 2019/20. A total of 11 new projects
developed by the Independent Power Producers (IPPs) with a combined installed capacity of 119 MW
were commissioned in the FY 2020/21. This has increased the total number of IPPs-owned projects
in operation to 108 with a combined installed capacity of 1016.36 MW.
A total of 138 projects to be developed by IPPs, with a combined installed capacity of 3506.8 MW
are under construction after financial closure. Similarly, 99 IPPs-owned projects with a combined
installed capacity of 1851.3 MW are at various stages of development. This has increased the total
number of PPAs signed with the various IPPs to 345 with a combined installed capacity of 6172.75
MW as of FY 2020/21.
3.4.1.5 Electrification Status

The national electricity access is increasing in past few years with 93% access in 2020/21 and a target
to achieve 100% access by 2023. The provincial electrification status along with national electricity
access is shown in Figure 3-23. It shows that electricity access in Madhesh, Bagmati, Gandaki, and
Lumbini provinces is comparable to the national average with more than 90% access in 2020/21
whereas Karnali province has the least access with only 35% access in 2020/21.
44
120
99 96 94
Electricity aceess (%)

100 86 82 87 90 87 87 93 89 91 88 90 93
80 81
76
80 67 65
59
60
35
40 27 28
20
0
Provinces
2018/19 2019/20 2020/21*
Figure 3-23 Provincial electrification status (MoF, 2021)
Coal
In Nepal low to medium-grade coal occurrences/ deposits are known in four stratigraphic positions
(a) Quaternary peat/ lignite (b) Siwalik coal (c) Eocene Coal and (d) Gondwana coal. Peat/ lignite in
Kathmandu valley is mined and used mainly in brick burning along with wood. Siwalik coal is not
economically attractive because of scattered small occurrences. Eocene Coal occurs as irregular seams
confined to orthoquartzite in Tosh, Siuja, Azimara, and Abidhara in Dang, and a few places in Sallyan,
Rolpa, Pyuthan, and Palpa districts. Table 3-15 provides a summary of potential coal reserves in
different parts of the country (Baskota, 2018). The data show that the country has a potential reserve
of about 5 million tons, particularly in Province 5. However, the coal is not properly mined due to
various reasons. So far 11 entrepreneurs were issued a license to excavate coal totaling 292 thousand
tons.
Table 3-15 Summary of Coal Reserve in different Parts of the Country
Possible
Strike
Type of Prospect and Description of the Thickness Width Reserve
Length Remarks
Location Prospect (m) (m) (Million
(m)
tons)
Tosh Area, Dang Three Mineable Seams
Ghorahi sub- Tosh 1 2 2000 200 1 million
metropolitan (the then Tosh 2 1.5 500 200 ton reserve
Saigha VDC) about 16 tested by
1.9
km north from exploratory
Tosh 3 1.8 1500 200
Ghorahi along Gohari drilling.
Hollery Roa
Nearby Tosh Area,
At Simdhara & Balikot 1.5 500 200 0.2
Dang
Nearby Tosh area, Continuation of Tosh 1 at
2 5 200 0.2
Rolpa Khara beside Tosh
Syuja Area Dang East
Several thin layers at Structurally
of Tosh, 26 km NE of
Syuja and Chhap and controlled on
Ghorahi and 13 km 1.1-1.8 3000 200 1
Harbang with one to two both sides of
from Hermok along
measurable seams Hurbang
Gorahi-Liban Road
45
Possible
Strike
Type of Prospect and Description of the Thickness Width Reserve
Length Remarks
Location Prospect (m) (m) (Million
(m)
tons)
Syuja
Syncline
Hurban-
One mineable seam at
Nearby Syuja, Pyuthan 1-1.8 500 200 0.2 Syuja
Loharpani and Murkutti
Syncline
Several layers at
Tulsipur - Kapurkot Abhidhara, Naulopani,
Structurally
Area of Dang and Dhorbang,
controlled by
Salyan: with a KholechaurMeltakura,
0.75 -2.5 2000 200 1 Kapurkot,
peripheral distance of Dograban with one to two
Phalabung
10 to 15 km from mineable seams at
thrust
Tulsiput Pakhapani, Sibang and
Khul Takura
Simaldi and
Tansen
Eastern Palpa, Palpa Chirtundanda, thin layers 0.7-1.9 1000 200 0.25
Synclinorium
at Anghakhola, Purba
Khola, and around Tansen
Tansen
Western Palpa, Palpa Ripdikot danda and Phek 0.7-1.9 500 200 0.2
Synclinorium
area
Ajimara area around Fault
Gondawana Coal 80 50 100 0.05
Tulsipur Dang controlled
Total reserve 5
The primary production of this coal is about 10.9 thousand tons, which are mainly used in brick
manufacturing industries. Also Nepal imports from India through private organizations under an
agreement with Coal India Limited. Table 3-16 shows the indigenous coal production as per the
Department of Mines and Geology and various types of coal imported into the country in three fiscal
years as per the Department of Customs.
Table 3-16 Coal Production and Import in Nepal in tons
2019 2020 2021

Own Production - 7,250 10,948
Imports total 1,881,635 1,479,183 2,001,611
Anthracite, not agglomoreted 3201287 2,982,833 110479
Bituminous coal, not agglomerated 1056 207422
Other coal, not agglomerated, 1664409818 1,337,212,825 1911595559
Briquettes, ovoids, and similar solid fuels 28675 79906 176426
manufactured from coal
Agglomerated lignite 2 14000
Coke and semi-coke of coal, of lignite or f peat; retort 213993422.2 138907825 89507340
carbon
Coal gas, water gas, producer gas, and simi ar gases, 326
not petroleum gases
Total 1,881,635 1,486,433 2,012,559
46
Petroleum
Nepal Oil Corporation is the sole organization responsible for the import and distribution of petroleum
products in Nepal. So far no proven reserves of petroleum suitable for commercial exploitation have
been found in Nepal. All the petroleum products consumed in Nepal are imported from India or
overseas in refined form for direct consumption. The NOC has current storage facilities of 68 thousand
KL for all essential petroleum fuels except for LPG, which is bottled and distributed by private
companies (Table 3-17).
Table 3-17 NOC Storage Capacity in different Locations of the Country
Province Storage Capacity (KL)

Location Total
MS HSD SKO ATF
Biratnagar 560 7,110 710 302 8,682
Province 1
Bhadrapur 48 48
Janakpur 30 140 70 32 272
Madhesh
Amlekhgunj 3,430 19,840 760 24,030
Kathmandu 6,070 8,400 760 7,015 22,245
Bagmati
Manthali 43 43
Gandaki Pokhara 350 2,280 760 88 3,478
Bhairahawa 140 3,040 394 151 3,725
Lumbini Bhairahawa Pump 32 48 80
Nepalgunj 210 2,280 760 303 3,553
Surkhet 44 82 126
Karnali
Dhangadi 70 1,590 70 63 1,793
Sudurpashchim Dipayal 46 46
Figure 3-24 presents the different types of petroleum products imported by NOC in different fiscal
years. The impact of COVID is visible in petroleum imports in 2020 which shows a more than 10%
decrease in petrol, diesel, and kerosene and a significant reduction of 31% in ATF imports compared
to 20219. On the contrary, there is an increase in LPG consumption of 5% as most of the activities are
limited to the household in 2020 due to the nationwide lockdown. The restriction on flights continues
even in 2021 which further reduces ATF imports in 2021 while other petroleum products increased as
the COVID impact slowed down and economic activities took pace in 2021. The increasing trend of
LPG is also attributed to the growing consumption in rural areas.
47
Figure 3-24 Petroleum products import in different FY in different provinces
The petroleum sales in different fiscal years in each province are shown in Figure 3-25. The sales
show a bit different pattern than the import mainly due to two reasons. Firstly, the sales are lesser than
the imports and the remaining quantity are in stock. Secondly, the depots that import, store and
distribute petroleum are in different locations than where it is sold. Thus, the sales data seems much
more distributed than the import data.
Figure 3-25 Petroleum products Sales in different FY in different provinces
Details of petroleum import and sales are given in Annex VIII.
48
4 Energy Consumption in Nepal
4.1 Energy Consumption by Fuel Types

The energy used in Nepal can be broadly divided into three categories: Traditional, Commercial, and
Alternative. Traditional energy resources include all types of biomass resources used for energy
production conventionally. All the energy resources with well-established market prices are grouped
into the commercial energy category whereas, indigenous renewable energy resources that are used
as an alternative and distributed energy source are grouped into the renewable category. The electricity
generated by the hydropower plants, although being renewable by source, they have been listed under
commercial energy as they are a commercial commodity with a specific cost per unit.
Figure 4-1 Energy Consumption Categorization
Energy Consumption in 2021

The energy consumption in the year 2021 has reached 626 PJ. To this year, the energy mix is still
dominated by the traditional energy types. However, it is noteworthy to observe that the share of these
fuel types has decreased over the past years. By 2021, the share of the highest used fuel, traditional
biomass, has decreased to 66% from 87% in 2009. This is a clear indication of the energy transition
to cleaner fuels. Among the traditional energy types, the fuelwood seems to be growing at the highest
rate while the use of animal waste has decreased from 5.7% to 2.87%. In the meantime, the share of
commercial energy use has increased. The consumption has increased taking the share of about 31%
in 2021 which was 12% in 2009. Among the commercial fuels, coal and liquid petroleum are the
highest-grown fuels for consumption. It is primarily due to an increase in economic sectoral activities,
which is discussed in section 4.2 later. The use of renewable energy, excluding major hydropower, is
also increasing. The rate of use of renewable energy is yet to compete with the growing demand for
commercial energy types. The increased access to roads and electricity is the main factor for low
preference for the use of alternative renewable energy sources. Nevertheless, the promotion of RETs
is in a very optimistic stride and is driving the country towards cleaner energy.
49
Table 4-1 Energy Consumption in 2021
Energy (000 % of National

Category Fuel Type 000 TOE GWh
GJ) Total
Fuelwood 377,790.36 9,023.37 104,941.77 60.38%
Agricultural
18,782.36 448.61 5,217.32 3.00%
Traditional Residue
Animal Waste 17,967.02 429.14 4,990.84 2.87%
414,539.75 9,901.11 115,149.93 66.26%
Kerosene 831.03 19.85 230.84 0.13%
Petrol 19,560.86 467.20 5,433.57 3.13%
Diesel 63,465.44 1,515.85 17,629.29 10.14%
ATF 2,218.29 52.98 616.19 0.35%
Commercial LPG 21,802.75 520.75 6,056.32 3.48%
Furnace Oil 3,399.09 81.19 944.19 0.54%
Coal 58,445.58 1,395.95 16,234.88 9.34%
Electricity 26,373.39 629.92 7,325.94 4.22%
196,096.43 4,683.68 54,471.23 31.34%
Biogas 9,756.95 233.04 2,710.26 1.56%
Solar 4,759.67 113.68 1,322.13 0.76%
Renewable Wind 1.87 0.04 0.52 0.00%
Micro/Pico Hydro 514.96 12.30 143.05 0.08%
15,033.46 359.07 4,175.96 2.40%
Total 625,669.64 14,943.86 173,797.12 100.00%
Energy consumption in 2019 and 2020

The energy consumption trend during 2019, 2020, and 2021 has not been smooth, mainly due to the
impact of COVID. It can be seen that the total energy consumption in 2020 decreased to 566 PJ from
589 PJ in 2019. The major consumption fall was found in commercial energy types since major
economic activities were impacted. Meanwhile, the use of traditional energy, except animal waste,
which have taken a decreasing trend with access to modern energy forms. With the reduction in Covid
impact and boom in economic activities, the energy consumption jumped to 626 PJ in 2021. Along
with it the use of commercial energy, primarily petroleum products decreased. As a result, the share
of fuelwood increased. However, this increase in share is just a result of a decrease in other fuel types
while the total energy did decrease overall. With the rise in economic sectors, the demand for
commercial fuels again increased, which increased the share of these fuels in the overall scenario.
50
Figure 4-2 Energy consumption in 2019, 2020, and 2021
The detailed table of energy consumption in 2019, 2020, and 2021 is given in Annex IX.
4.2 Energy Consumption by Sectors

Sectoral energy consumption in 2021
The sectoral energy consumption also has changed over the last decade. Even though the residential
sector is still the largest energy-consuming sector, its share in overall demand has come down to 63%
in 2021, from 89% in 2009. This is due to multiple factors such as –
 growth in economic activities – resulting in more demand in economic sectors,
 use of modern technologies – that are dependent on commercial fuels
 energy transition – as a result of access to commercial fuels, and
 energy efficiency improvement with advancements in technologies – resulting in the
requirement of less energy for the same amount of end-use activity.
The effect of growing economic activities is seen in other sectors – industrial, commercial as well as
transport, and agriculture. Apart from these, the share of energy consumption is reaching 1% in the
construction and mining sector – a significant sector in national development.
2021 Transport
9.0% Construction and mining
0.8%
Agriculture
1.6%
Commercial
Residential 7.0%
63.2%
Industry
18.3%
626 PJ
Figure 4-3 Energy consumption by sectors in 2021
Sectoral energy consumption in 2019 and 2020

The sectoral energy consumption in 2019 and 2021 has not changed a lot. However, due to the impact
of the pandemic, the energy consumption in the economic sector was impacted during the fiscal year
51
2019/2020 (Figure 4-4). The impact in industrial and agriculture sectors was not as high as in the
former as these activities continued to operate at lower volume during the period as well. Meanwhile,
energy consumption in the residential sector increased during this interval with people staying at
home. The change in the energy mix has been momentary during the lockdown period, and it went
back to a similar pattern in 2021.
Figure 4-4 Sectoral energy in 2019, 2020 and 2021
Agriculture
The energy consumption in the agricultural sector is mainly in farming machinery such as water
pumping, tilling, threshing and harvesting. Among these, water pumping is the most used activity and
predominantly in the Terai region. In hilly regions, many irrigated land is gravity fed or depends on
rainwater. In addition to that, except for a few large farming areas, the small holdings are still using
draught animals for agricultural activities. In 2021, the agricultural sector consumed 9.8 PJ energy,
among which 95.9% is diesel. Only 7.4% of farm machinery like water pumping and irrigation, are
running on electricity because most of the farm machinery such as tillers and harvesters are mobile-
type machinery. In addition to that most of the water, pumps are also diesel-powered. However, in
recent years the popularity of the solar pumping system for irrigation has increased. Thus, in
comparison to the 2009 status, 0.26% of agricultural sector energy consumption is now powered by
solar and is expected to grow more in coming years.
2.7 TWh
Figure 4-5 Energy consumption by fuel types agricultural sector in 2021
52
The average growth rate of energy consumption between 2019 and 2021 was 3.88%. It can be seen in
the agriculture sector that it was one of the sectors that were least affected by COVID impact as it is
a subsistence activity in Nepalese livelihood. The agricultural sector energy consumption in 2019 (9.1
PJ) went up by 3.83% to 9.4 PJ and 3.94% per annum to 9.8 PJ in 2020 and 2021 respectively.
Figure 4-6 Energy consumption by fuel group in Agricultural sector in 2019, 2020 and 2021
The detailed data sets are given in Annex X.
Commercial
The commercial sector although being the growing economic sector, energy consumption in this
sector only comes at a third in total, taking about 7% of national consumption. Although the
commercial sector is expanding at a tremendous rate, the energy consumption rate is not as growing.
This is mainly because this sector is not as energy-intensive as other sectors – the commercial entities
mostly use electricity, which is highly efficient. In addition to that, the decrease in load shedding has
cut the use of petroleum generator sets as well. The largest amount of energy used in the commercial
sector is in form of thermal energy, used for cooking in the food and accommodation subsector. Thus,
energy type-wise, the consumption of energy in the commercial sector is dominated by fuelwood
followed by LPG. The least amount of energy is used from kerosene and diesel as with the availability
of electricity, the use of generators has reduced. Meanwhile, the penetration of renewables, mainly
solar (PV and thermal) has grown significantly.
12 TWh
Figure 4-7 Energy consumption by fuel types Commercial sector in 2021
The Commercial sector was impacted by restrictions due to pandemic restrictions and thus the energy
consumption dropped in 2020. However, the impact of the pandemic is not as prominent in the
industrial, and transport sectors. The consumption reduced the rate by -1.39% in 2019 while it rebound
53
at the rate of 9.2% from 2020 to 2021. The overall growth from 2019 to 2020 was at the rate of 3.76%.
Figure 4-8 Energy consumption by fuel group in Commercial sector in 2019, 2020 and 2021
Industrial
The industrial sector is a highly energy-intensive economic sector. The total consumption in this sector
totals 114.5 PJ, which comes as the second-highest energy-consuming sector in the national total
taking a share of 16%. The major energy use in the industry sector is for thermal purposes. Thus, it is
seen that coal is the highest used energy type in this sector, at 48%, along with fuelwood at 17% -
which are used for furnaces. The agricultural residue is still used in a high quantity for boilers. With
the increase in new technologies, the use of electricity for thermal purposes is also increasing but the
pace of replacing the old technology is not sufficient yet. The consumption of diesel is also noticeable
in industry, which is primarily used for motive power, including running generators. It is also used for
thermal purposes in the boiler, along with furnace oil.
32 TWh
Figure 4-9 Energy consumption by fuel types Industrial sector in 2021
The Industrial sector also took a hit due to Covid restrictions. The energy consumption thus decreased
at the rate of -5.8% in 2020. With loosened restrictions in industrial sector, consumption grew by 29%
from 2020 to 2021.
54
Figure 4-10 Energy consumption by fuel group in Industrial sector in 2019, 2020 and 2021
Residential
The residential sector is still the highest energy-consuming sector. In 2021, the residential sector
consumed 396 PJ of energy, which is 64% of the national total. Although the total energy consumption
in the residential sector has increased over the past decade, the energy intensity of the residential sector
has decreased from about 14 GJ per capita to 13.2 GJ per capita in 2019. This outcome can be
attributed to the energy transition through energy access to modern fuel and energy efficiency
improvement. However, fuelwood still dominated the energy consumption in the residential sector at
84.9%. Even though the fuelwood is still the highest-energy type consumed, its share has decreased
from 87% in 2009. Though this reduction in share does not seem significant, it has to be noted that,
technologies using fuelwood are far less efficient than those which replaced those technologies. Thus,
the only small increment can be seen in other fuels, not taking as much share. In addition to that, the
use of clean energy cooking technologies and access to energy has been beneficial in reducing the
dependency on traditional fuels, on other hand, modernization has increased dependence on LPG,
which is imported fuel. The share of LPG consumption has increased to 2.76%, more than doubled in
a decade. Thus, energy security-wise, the residential sector is still at risk. However, the promotion of
alternative energy is also keeping up to provide clean energy. The share of biogas has increased to
2.5% and solar to 0.51%. Similarly, the use of electricity increased to nearly 3% from 1% in 2009.
110 TWh
Figure 4-11 Energy consumption by fuel types Residential sector in 2021
55
The Residential sector, unlike other economic sectors, was less impacted by pandemic restrictions.
The energy consumption in residential kept increasing from 2019 and 2020 at the rate of 1.8% and
2.66% respectively. In this course also, the use of traditional fuel was still predominant. Although the
growth of renewable energy was impacted due to less access in 2020, it is growing again after loosened
pandemic restrictions. Residential energy consumption increased at the rate of 2.23% per annum in
the last two years, which is higher than the population growth rate. Thus, the energy intensity is seen
to increase in the residential sector as well.
Figure 4-12 Energy consumption by fuel group in Residential sector in 2019, 2020 and 2021
Transport
Transportation is the third most energy-consuming sector in Nepal, which consumed 56.6 PJ of
energy. It accounts for 10.3% of the national total. In terms of petroleum products energy, it is the
highest energy-consuming sector among all the sectors. Less than 1% of electricity is used in this
sector. Is it to be noted that the private EV transport system has yet to be accounted into transport
sector energy as the electricity is summed up in the residential sector. However, with growing charging
stations and dedicated lines for EV charging, its energy consumption can be expected to be visibly
increased in the database as well. The energy consumption in the transport sector has been increasing
as this sector is highly influenced by both economic as well as demographic status. By fuel type, diesel
is the most consumed fuel. The largest share of diesel in the transport sector is used by freight vehicles
as well as heavy passenger vehicles. On the other hand, a large portion of petrol is consumed by small
private vehicles. The aviation fuel is shared by both national and international flights, however, the
international flights consume more than 50% of the aviation fuel.
15.7 TWh
Figure 4-13 Energy consumption by fuel types Transport sector in 2021
56
The impact of the Covid pandemic is prominently visible in the transport sector as well when the
transport system was also halted. Thus the consumption reduced by nearly 47% in 2020 in compare
to 2020. With loosened restrictions, it increased by one and a half folds in comparison to 2020.
However, due to ongoing restrictions in the aviation sector between 2020 and 2021, the total
consumption did not grow as much.
Figure 4-14 Energy consumption by fuel group in Transport sector in 2019, 2020 and 2021
Construction and Mining

The construction and mining sector is one of the sprouting as well as an important sector. It is seen
that this sector consumed around 5.2 PJ of energy in 2021. Although it seems to consume only 0.89%
of the total national energy, it has an essential impact on energy consumption as well as the economy.
The energy consumed in this sector is primarily for the large on-site equipment including primarily
diesel-operated generators. The use of fuelwood and kerosene are being replaced by using LPG and
diesel for heating purposes. The energy consumed by the transportation of construction and mining
vehicles comes from the transport sector.
1.5 TWh
Figure 4-15 Energy consumption by fuel types Construction and Mining sector in 2021
The impact of Covid restrictions is visible in this sector as well. The Construction and Mining sector's
energy consumption increased at the rate of 0.27% from 2019 to 2021 as it was also largely affected
by pandemic restrictions during 2020.
57
Figure 4-16 Energy consumption in Construction and Mining sector in 2019, 2020 and 2021
58
5 Energy Indicators
Final Energy Intensity
The energy intensities can indicate two things – the rate of energy consumption and energy efficiency.
It can be seen from Table 5-1 that the energy intensity of Nepal is on the higher side. It is almost as
much as double that of the global average and is still higher than the Indian average of 0.15 GJ per
NRs 1000 (TERI, 2017). It is not only that Nepalese consume more energy, but it also indicated the
status of energy efficiency is lower in Nepal than in India. The energy intensity in the residential sector
has decreased in the past decade from about 14 GJ per capita to 13.3 GJ per capita in 2019. This shows
the impact of modern energy access as well as clean energy technology penetrations. Meanwhile, the
electricity intensity is a good sign of efficiency improvement as electric technologies are more
efficient on one hand. In addition to that, since all electricity generated in Nepal is clean and
indigenous, it also indicative of an environment-friendly pathway. The electricity per capita is also
increasing which also indicates access to electricity as well as clean energy.
The energy intensity per value addition also is an indication of energy efficiency and technology used.
The agricultural energy intensity is low since much of the agricultural activity is still done by human
labor or draught animals. Meanwhile, the lower energy intensity in the commercial sector can be
attributed to the use of efficient electric appliances uses. On the other hand, the industrial efficiency
is very high, even than the national average. It is mainly due to the high dependence on petroleum
products and coal. If they can be switched to electric and more efficient technologies, the energy
intensity can be lowered. The example is right in our neighborhood, India, where electricity
consumption is growing at the rate of 23% per annum. Thus, even though India is expanding the
economy, the economic energy intensity is going down. The same can be done in Nepal by using
indigenous electricity production.
Table 5-1 Final energy intensities
Final energy intensity GJ per 1000 NRs Value Addition 0.28 0.27 0.29
GJ per capita 20.62 19.82 21.92
Agriculture GJ per 1000 NRs 0.01 0.02 0.02
Commercial GJ per 1000 NRs 0.03 0.04 0.04
Industry GJ per 1000 NRs 0.76 0.78 0.97
Residential GJ per capita 13.27 13.51 13.86
Electricity kWh per 1000 NRs 3.08 3.20 3.52
kWh per capita 228 232 265
Residential Electricity kWh per HH 218 251 296
Electricity Consumption
Table 5-2 gives consumer indices provided by NEA. It is seen that the average electricity price has
been decreasing in past few years while the consumption is increasing. It is to be noted that the per
capita consumption given by NEA differs from that in Table 5-1 as the NEA calculates the indices
based on its sales, while there are other off-grid generations included in the above table.
59
Table 5-2 Consumer indices for electricity for NEA distributed electricity
2019 2020 2021

Annual Unit sales per consumer 1420 1342 1425
Average price per kWh (Rs.) 10.48 11.57 9.76
Per capita sales 220 218 246.56
Distribution Loss 11.28% 10.28% 11.64%
(NEA, 2020: NEA, 2021)
Energy Shares
Table 5-3 shows the types of energy in the national total. The share of biomass is very high. Although
traditional biomass is considered clean fuel in a developed country, in the case of Nepal, where it is
used in an unsustainable way, using inefficient technologies, it is a polluting form of energy. Thus, it
needs to be reduced. On the other hand, the share of renewable energy, including electricity from
hydro, is in increasing trend which is a good sign. Meanwhile, the energy imported is also very high
to be energy secure. This imported energy includes petroleum, coal as well as electricity. Thus, Nepal
should give priority to reducing petroleum imports on the one hand and on the other manage the
electricity such that it is not spilled in the wet season and needs to be imported in dry seasons.
Table 5-3 Energy share with respect to national consumption
Traditional biomass energy Share in total 68.30% 71.26% 66.26%
Total Renewable energy* Share in total 5.04% 6.42% 5.89%
Imported Energy Share in total 27.5% 26.02% 28.71%
*includes electricity generated from hydropower
60
6 Energy Balance
An energy balance is a table that depicts the point of source and point of consumption of energy.
Energy balance has three main components
1. Supply-side
2. Transformation or conversion side
3. Consumption side
The supply-side lists out all the incoming sources and resources including production of primary
energy as well as imports and exports. The transformation side includes any conversion of energy
from one to another for final use, such as hydro to electricity. The losses that occurred during the
transformation are also depicted here. Finally, the consumption side indicates where and how much
energy is being consumed.
The energy balances of Nepal for the years 2019, 2020, and 2021 are given in the following tables.
61
Table 6-1 Energy Balance for year 2021
Energy Balance 2020/21

Traditional Commercial Renewables
Petroleum Products
Agricultural Animal Total Furnace Total Total Micro/Pico Total
in TJ Fuelwood Residue Waste Traditional Kerosene Petrol Diesel ATF LPG Oil Petroleum Coal Electricity Commercial Biogas Solar Wind Hydro Renewables Grand Total
Primary Supply -
Production 377,790 18,782 17,967 414,540 - - - - - - - 353 21,787 22,140 9,757 4,760 1.9 515 15,033 451,713
Imports - - - - 837 19,695 63,382 2,277 21,803 3,399 111,393 58,093 10,174 179,659 - - - - - 179,659
Exports - - - - - - - - - - - - (158) (158) - - - - - (158)
Stock changes - - - - (6) (134) 83 (59) (0) - (115) - - (115) - - - - - (115)
Total Primary Supply 377,790 18,782 17,967 414,540 831 19,561 63,465 2,218 21,803 3,399 111,277 58,446 31,802 201,525 9,757 4,760 1.9 515 15,033 631,099
Transformation - - - - - - - - - - - - - - - - - - - -
Inputs - - - - - - - - - - - - (31,802) (31,802) - - - - - (31,802)
Electricity generation - - - - - - - - - - - - 31,802 31,802 - - - - - 31,802
T & D losses - - - - - - - - - - - - (5,395) (5,395) - - - - - (5,395)
Other losses, own-use etc. - - - - - - - - - - - - (34) (34) - - - - - (34)
Net supply to consumers 377,790 18,782 17,967 414,540 831 19,561 63,465 2,218 21,803 3,399 111,277 58,446 26,373 196,096 9,757 4,760 1.9 515 15,033 625,670
Final Consumption - - - - - - - - - - - - - - - - - - - -
Agriculture - - - - - 136 8,943 - - - 9,079 - 730 9,809 - 25 - - 25 9,834
Commercial 22,964 - - 22,964 - 36 37 - 10,848 - 10,920 3,295 3,800 18,015 52 2,724 - - 2,775 43,755
Industry 19,274 11,432 - 30,706 278 231 14,597 - 2 3,399 18,508 55,150 10,164 83,821 - - - - - 114,527
Residential 335,421 7,350 17,967 360,738 176 - - - 10,900 - 11,076 - 11,668 22,744 9,705 2,011 1.9 515 12,233 395,715
Transport - - - - - 19,093 35,280 2,218 0 - 56,592 - 7 56,599 - - - - - 56,599
Construction and mining 132 - - 132 377 65 4,608 - 53 - 5,103 - 5 5,109 - - - - - 5,240
Total 377,790 18,782 17,967 414,540 831 19,561 63,465 2,218 21,803 3,399 111,277 58,446 26,373 196,096 9,757 4,760 1.9 515 15,033 625,670
Statistical Errors
62

Petroleum Products
Primary Supply -
Production 366,847 18,254 17,878 402,980 - - - - - - - 234 21,643 21,877 10,141 4,080 1.4 436 14,658 439,515
Imports - - - - 671 17,046 55,062 4,330 20,494 374 97,977 42,969 6,224 147,171 - - - - - 147,171
Exports - - - - - - - - - - - - (385) (385) - - - - - (385)
Stock changes - - - - 10 (2,573) (13,958) 40 (0) - (16,481) - - (16,481) - - - - - (16,481)
Total Primary Supply 366,847 18,254 17,878 402,980 682 14,473 41,104 4,370 20,493 374 81,496 43,203 27,482 152,182 10,141 4,080 1.4 436 14,658 569,819
Transformation - - - - - - - - - - - - - - - - - - - -
Inputs - - - - - - - - - - - - (27,482) (27,482) - - - - - (27,482)
T & D losses - - - - - - - - - - - - (4,252) (4,252) - - - - - (4,252)
Net supply to consumers 366,847 18,254 17,878 402,980 682 14,473 41,104 4,370 20,493 374 81,496 43,203 23,200 147,899 10,141 4,080 1.4 436 14,658 565,537
Agriculture - - - - - 133 8,713 - - - 8,846 - 597 9,443 - 19 - - 19 9,462
Commercial 21,638 - - 21,638 - 34 36 - 9,584 - 9,654 3,153 3,418 16,225 45 2,166 - - 2,210 40,073
Industry 18,263 10,975 - 29,238 218 223 9,454 - 2 374 10,271 40,050 9,194 59,515 - - - - - 88,753
Residential 326,863 7,279 17,878 352,019 167 - - - 10,861 - 11,027 - 9,977 21,005 10,096 1,896 1.4 436 12,429 385,453
Transport - - - - - 14,035 19,917 4,370 0 - 38,322 - 10 38,332 - - - - - 38,332
Total 366,847 18,254 17,878 402,980 682 14,473 41,104 4,370 20,493 374 81,496 43,203 23,200 147,899 10,141 4,080 1.4 436 14,658 565,537
Statistical Errors
63

Petroleum Products
Primary Supply -
Production 365,089 18,045 18,841 401,975 - - - - - - - - 17,057 17,057 8,175 4,080 1.0 326 12,582 431,614
Imports - - - - 887 18,867 64,081 6,305 19,606 1,222 110,968 - 10,127 121,095 - - - - - 121,095
Exports - - - - - - - - - - - - (126) (126) - - - - - (126)
Stock changes - - - - 3 (132) (476) 1 (0) - (604) 40,780 - 40,176 - - - - - 40,176
Total Primary Supply 365,089 18,045 18,841 401,975 890 18,735 63,605 6,306 19,606 1,222 110,364 40,780 27,058 178,201 8,175 4,080 1.0 326 12,582 592,758
Transformation - - - - - - - - - - - - - - - - - - - -
Inputs - - - - - - - - - - - - (27,058) (27,058) - - - - - (27,058)
T & D losses - - - - - - - - - - - - (4,137) (4,137) - - - - - (4,137)
Net supply to consumers 365,089 18,045 18,841 401,975 890 18,735 63,605 6,306 19,606 1,222 110,364 40,780 22,864 174,008 8,175 4,080 1.0 326 12,582 588,565
Agriculture - - - - - 128 8,417 - - - 8,546 - 560 9,106 - 7 - - 7 9,113
Commercial 22,456 - - 22,456 - 35 37 - 9,169 - 9,240 3,266 3,453 15,959 40 2,183 - - 2,223 40,638
Industry 19,907 10,837 - 30,744 303 241 14,449 - 2 1,222 16,216 37,514 9,756 63,486 - - - - - 94,230
Residential 322,597 7,208 18,841 348,646 176 - - - 10,390 - 10,566 - 9,075 19,641 8,135 1,890 1.0 326 10,352 378,639
Transport - - - - - 18,270 36,141 6,306 0 - 60,717 - 16 60,733 - - - - - 60,733
Total 365,089 18,045 18,841 401,975 890 18,735 63,605 6,306 19,606 1,222 110,364 40,780 22,864 174,008 8,175 4,080 1.0 326 12,582 588,565
Statistical Errors
64
7 Energy Pricing
Most of the energy resources in Nepal are not traded. However, fossil fuels are imported from outside the
country. Prices of electricity and petroleum are controlled by the Government whereas free-market energy
products namely coal, charcoal, and other petroleum products such as candles, raw petroleum, etc. are set in the
market. The pricing strategy of the government is somewhat related to providing energy at low costs.
Commercial energy resources particularly electricity, petroleum, and traded fuelwood are subsidized and
distributed through different dealers or points. The market price of fuelwood was obtained from a provincial
report, Petroleum product rates were obtained from Nepal Oil Corporation, and electricity energy price was
obtained from the NEA.
Table 7-1 compares the market price, efficiency, and effective price of the major fuel types used for cooking
purposes in Nepal. It can be seen that, in terms of cooking, electricity has become the cheapest option. It is also
evident that they are energy efficient as well as clean energy as electricity is produced from hydropower.
However, if the electricity is to be produced from thermal generators, and used in rice cookers, they are the most
expensive option. The below data can indicate that policy should be faced towards electrification – promoting
low wattage rice cookers for low connection capacity and high wattage induction cooktops where ever possible.
Table 7-1 Energy pricing for cooking
Effective
Market Average
Natural Market Price Price of useful
Fuel Type Price Efficiency
Unit (Rs. /kWh) energy
(Rs/unit) (%)
(Rs./kWh)
Fuelwood kg 10 3.60 15% 24.00
LPG cylinder 1800 10.00 54% 18.66
Electricity - Rice cooker Unit (kWh) 9.5 9.50 70% 13.57
Electricity - Induction cooktop Unit (kWh) 9.5 9.50 85% 11.18
Kerosene Liter 153 13.77 50% 27.54
Diesel (generator + ricecooker) Liter 165 13.50 28% 48.21
Petrol (generator + ricecooker) Liter 178 14.43 28% 51.54
Note: Price of fuelwood is on basis of provincial reports of province 1 and Madhesh province, WECS, 2020
Price of LPG, Kerosene, Diesel, and petrol are from NOC as of May 15, 2022
Efficiencies of diesel and petrol generator sets are assumed to be 50% at full load condition
Price of Electricity is as per Annual Report 2020, NEA 2021
The pricing policy for the major petroleum products such as kerosene, HSD, petrol, ATF, and LPG is approved
by the Government of Nepal. The NOC board can fix the price of other unregulated products. NOC has been
currently applying Auto Petroleum Pricing Mechanism. After applying the mechanism, the selling price of the
petroleum is adjusted instantly.
65
Table 7-2 Recent Trend of Petroleum Fuel Price
Effective Date Petrol Diesel Kerosene LPG ATF (DP) ATF (DF)
2022.05.14(2079.01.31) 170.00 153.00 153.00 1600.00 156.00 1545.00
2022.04.05(2078.12.22) 160.00 143.00 143.00 1600.00 156.00 1545.00
2022.03.16(2078.12.02) 155 138 138 1575 151 1495
2022.03.03(2078.11.19) 150 133 133 1575 136 1295
2022.02.20(2078.11.08) 145 128 128 1575 126 1195
2022.02.19(2078.11.07) 145 128 128 1575 116 1095
2022.02.01(2078.10.18) 142 125 125 1575 116 1095
2022.01.19(2078.10.05) 139 122 122 1575 106 995
2021.11.10(2078.07.24) 136 119 119 1575 101 895
2021.10.29(2078.07.12) 133 116 116 1500 96 853
2021.08.23(2078.05.07) 130 113 113 1450 86 770
2021.07.14(2078.03.30) 128 111 111 1425 84 754
021.07.06(2078.03.22) 129 112 112 1425 84 754
2021.06.23(2078.3.9) 127 110 110 1400 82 735
2021.06.06(2078.02.23) 125 108 108 1400 80 715
2021.06.05(2078.02.22) 125 108 108 1400 80 893
2021.05.16(2078.02.02) 123 106 106 1400 78 893
2021.04.17(2078.01.04) 121 104 104 1400 76 893
2021.04.04(2077.12.22) 120 103 103 1400 74 893
2021.03.16(2077.12.03) 118 101 101 1400 72 893
2021.03.01(2077.11.17) 116 99 99 1400 65 868
2021.02.16(2077.11.04) 114 97 97 1400 65 868
2021.02.10(2077.10.28) 112 95 95 1400 65 868
2021.01.18(2077.10.05) 110 93 93 1375 65 868
2020.12.12(2077.08.27) 108 91 91 1375 65 868
2020.10.01(2077.06.15) 107 89 89 1375 65 868
2020.09.16(2077.05.31) 107 90 90 1375 65 868
2020.09.1(2077.05.16) 107 91 91 1375 65 868
2020.08.16(2077.04.32) 105 91 91 1375 65 868
2020.08.02(2077.04.17) 104 90 90 1375 65 868
2020.07.10(2077.03.26) 102 88 88 1375 65 868
2020.06.30(2077.03.16) 101 87 87 1375 65 868
7.1 Electricity Pricing

The price structure for the electricity transmitted by the national grid and distributed is regulated by the
Electricity Tariff Fixation Commission, while the isolated system along with the micro-hydro-generated
electricity fixes the prices according to the generator. The tariff for different sectors of the economy is also
different. Also for the residential sector, the tariff depends upon the amount of the unit consumed. In the
industrial sector, the price of electricity is less compared to other sectors of the economy. Also, NEA has
introduced Time of the Day meters for effective utilization of the energy generated. The domestic consumers'
tariff structures are as shown as per NEA.
66
Domestic Consumers
1.1 Single Phase Low Voltage (230 Volt)
kWh 5 Ampere 15 Ampere 30 Ampere 60 Ampere
(Monthly Minimum Energy Minimum Energy Minimum Energy Minimum Energy
Charge Charge Charge Charge Charge Charge Charge Charge
(Nrs.) (Nrs/kWh) (Nrs.) (Nrs/kWh) (Nrs.) (Nrs/kWh) (Nrs.) (Nrs/kWh)
0-10 30.00 0.00 50.00 4.00 75.00 5.00 125.00 6.00
11-20 30.00 3.00 50.00 4.00 75.00 5.00 125.00 6.00
21-30 50.00 6.50 75.00 6.50 100.00 6.50 125.00 6.50
31-50 50.00 8.00 75.00 8.00 100.00 8.00 125.00 8.00
51-100 75.00 9.50 100.00 9.50 125.00 9.50 150.00 9.50
101-150 100.00 9.50 125.00 9.50 150.00 9.50 200.00 9.50
151-250 125.00 10.00 150.00 10.00 175.00 10.00 200.00 10.00
251-400 150.00 11.00 175.00 11.00 200.00 11.00 250.00 11.00
Above 400 175.00 12.00 200.00 12.00 225.00 12.00 275.00 12.00
Three phase L ow Voltage (400 Volt)

kWh (Monthly) Up to 10 KVA Above 10 KVA
Minimum Energy Minimum EnergyCharge
Charge Charge Charge (Nrs/kWh)
(Nrs.) (Nrs/kWh) (Nrs.)
00 0.00 11.50 1800.00 11.50
Above 400 12.00 12.00
Three phase Medium Voltage (33/11 kV)

Minimum Charge Energy Charge
(Nrs.) (Nrs/kWh)
Up to 1000 10,000 11.00
Above 1001 12.00
67
8 Provincial Energy Synopsis

Nepal entered the federal system, the country is regrouped into 7 provinces with 77 districts and 753 local
bodies. With this administrative division, WECS also initiated developing an energy database for the provincial
level. WECS conducted the primary survey for Province 1 and Mahesh Province in 2019 to determine the
situation of energy consumption and supply in both provinces. The study also included projecting the future
energy demand under different economic scenarios and interventions.
8.1 Province 1
Energy Supply in Province 1
Fuelwood Supply
With the increasing population, the area under agriculture expanded and forests shrunk. The forest area in the
Terai declined by 16,500 ha in the years from 2001 to 2010 and by 32,000 ha in the 19 years from 1991 to 2010.
The annual rate of decrease in forest cover was 0.44% during the last nine years from 2001 to 2010 and was
0.40% during the last 19 years from 1991 to 2010/11. The annual rate of deforestation in all 20 Terai districts
was 0.06%, excluding protected areas (FRA/DFRS, 2014). In Province 1 also the land under cultivation
increased at cost of forest land. On the other hand, due to poverty, the demand for fuelwood increased despite
the rapid growth in the commercial energy sector in the terai region, because the fuelwood is practically free if
people afford time for collection. A large quantity of fuelwood is being collected from the community-managed
and government-managed forests by the local people.
Table 8-1Forest Area and Actual Fuelwood Produced
Annual firewood Annual firewood production of
District Forest area (ha) stem volume m3
production (m3 ) accessible forest (m3 )
Terai :accessible forest (100%)
Jhapa 17,568 2,941,235 50,008 50,008
Morang 44,075 7,379,037 125,461 125,461
Sunsari 21,653 3,625,145 61,636 61,636
Total 83,296 13,945,416 237,106 237,106
Middle mountain: accessible forest (90%)
Udayapur 148,411 18,441,551 112,598 101,338
Ilam 93,467 11,614,209 70,912 63,821
Dhankuta 36,724 4,563,324 27,862 25,076
Terhathum 32,821 4,078,337 24,901 22411
Bhojpur 73,037 9,075,578 55,412 49,871
Khotang 74,284 9,230,530 56,358 50,723
Okhaldhunga 52,286 6,497,058 39,669 35,702
Panchthar 71,774 8,918,637 54,454 49,009
Total 582,804 72,419,225 442,166 397,950
Higher mountain: accessible forest (70%)
Sakhuwasabha 190,052 42,807,312 554,195 387,936
Solukhumbu 110,043 24,786,085 320,887 224,621
Taplejung 155,931 35,121,898 454,697 318,288
Total 456,026 102,715,296 1,329,779 930,845
Grand Total 1,122,126 189,079,938 2,009,051 1,565,901
68
Petroleum Products
All the petroleum consumed in the country is imported from India. The only company that deals with the import
and sales of petroleum products – that includes diesel, petrol, kerosene, and LPG is Nepal Oil Corporation Ltd.
(NOC). The furnace oils and other oil residues are imported by the industries themselves. Thus, the supply of
petroleum products is obtained from the regional offices of NOC. All the units for petrol or Motor Spirit (MS),
Diesel, and Super Kerosene Oil (SKO) are in liters except for LPG in a metric ton (MT). These sales data
represent the sales to depots in each district. However, it is to be noted that neither the sales from these depots
are bound within the district only nor the supply in each district is bound by the capacity of depots only – there
are inter boundary trade and transportation of petroleum fuels. Hence, the supply of petroleum products and
their consumption may not tally properly.
Table 8-2Petroleum sales in 2075-76 in Province 1
MS Diesel SKO LPG
Districts
kL kL kL tons
Taplejung 234 1,980 - -
Sankhuwasabha 948 4,441 - -
Solukhumbu 288 1,576 282 -
Okhaldhunga 816 5,722 168 -
Khotang 306 1,904 - -
Bhojpur 288 3,113 - -
Dhankuta 1,371 7,399 39 -
Terhathum 192 1,032 - -
Panchthar 929 7,109 - -
Ilam 2,245 6,487 - -
Jhapa 27,102 66,017 777 20,824
Morang 25,507 71,727 1,528 9,358
Sunsari 21,557 59,436 1,019 51,994
Udayapur 3,622 15,950 - -
Total 85,405 253,891 3,813 82,176
Electricity
Province 1, which has mountains and hills, has an abundance of water resources and there are several potential
sites for hydropower development. The average potential for hydropower plants is around 20,500 MW in
province 1 (Kandel, 2018). In addition to that, 66 MW of small hydropower potential from 84 and nearly 70
sites for 1 MWp of solar PV sites have been identified for decentralized generation of electricity (NPC, 2018).
There are 29 IPPs hydropower projects, 4 major hydropower plants, and 5 small hydropower plants in province
1 (NEA 2019). There is 237.59 MW (226.796 MW from IPPs and 10.794 MW from NEA generation) installed
capacity in the province. The district-wise electricity supply status as obtained from Nepal Electricity Authority
for Province1 is shown below.
69
350
300
250
200
GWh
150
100
50
Figure 8-1Electricity sales in Province 1 in 2075 (NEA, 2019)

Province 1 consumed 1,011 GWh of electricity including consumption in all economic sectors (NEA database
2020). The three districts of Terai - Jhapa, Morang and Sunsari located in the industrial zone consumed 79%
of total electricity consumption. However, electricity consumption in the mountainous region is extremely low.
It could be due to poor access to electricity in remote areas. Comparatively, electricity consumption is lower in
the Hilly region than in the Terai region.
As per NEA domestic consumption data, the electricity connection as per ampere capacity of households
indicates that over 90% of the households lie within minimal amperage capacity of 5A, and 7% are connected
with 6-15 A connection. Less than 1% have an electricity connection above 16A. In province 1, 76% of
households have access to electricity (NEA, 2019).
Modern Renewable Energy Sources

Modern Renewable energy sources include wind, biogas, solar, micro-hydro, and other renewables. Alternative
Energy and Promotion Centre (AEPC) is the leading organization working on the promotion of renewable
energy in Nepal. Modern energy access is gradually increasing in Nepal with the current status of electricity
access from renewables reaching 25% population. There has been a contribution of 32 MW of electricity from
mini and micro-hydro schemes, 15 MWp from solar PV systems, and around 20 kW from wind energy. More
than 1.5 million households have benefited from different renewable energy sources for cooking, lighting and
productive end uses (MoPE, 2016).
According to AEPC, the number of installed plants for solar home systems (SHS), small solar home systems
(SSHS), Mud Improved Cookstoves (MUDICS), domestic biogas, and Institutional solar PV system (ISPS) in
province 1 is as shown in the table below. Approximately1,440 kWp from SHS, 243 kWp from SSHS, and
311kWp from ISPS have been installed in Province 1. In addition to these, solar photovoltaic pumping system
(SPVPS) has gained much popularity among farmers. The average size of ISPS is 2kWp.
Most of the biogas plants are sized 4 cubic meters in the province. Due to the lowland of the region, there are
no micro-hydro plants installed in Province 1. Recently 138 kW of the solar mini-grid power plant has been
installed in the province of which 43 kW is installed in Morang and 95kW in Panchthar.
70
Table 8-3Number of Modern Renewable Technologies Installed in Province 1 (AEPC, 2019)

District SHS SSHS ISPS MUD ICS Domestic biogas
Bhojpur 12,348 321 2 163 225
Dhankuta 1,650 183 5 234 2,059
Illam 5,136 570 23 711 6,306
Jhapa 651 596 20 0 18,752
Khotang 12,833 865 23 137 100
Morang 1,365 776 32 8 10,800
Okhaldhunga 10,244 155 26 1,737 413
Panchthar 7,751 140 6 344 1,064
Sankhuwasabha 8,700 50 3 643 536
Solukhumbu 4,117 0 2 896 107
Sunsari 1,186 80 5 0 4,126
Taplejung 6,268 661 10 1,050 233
Terhathum 1,760 223 4 193 799
Udayapur 22,024 254 13 57 5,953
Total 96,033 4,874 174 174 51,473
Energy Consumption in Province 1

The total energy consumption in Province 1 in 2019 was 74PJ. Sector-wise, energy consumption in the industrial
sector has the highest share in this province followed by the residential sector. Meanwhile, the solid fuels –
firewood, biomass as well as coal dominated the energy source type. It is evident that there is a change in the
energy mix as compared to previous studies at national and regional levels. Nearly 45% of the total energy
demand is in the industrial sector. Source wise 55% of energy comes from renewables and that of non-
renewables at around 45% respectively. This contrast in high usage of non-renewable energy is due to the big
industries and high economic activities - demanding more commercial forms of energy.
Sector-wise, the industrial sector is predominant in terms of energy demand with nearly 45% of consumption
out of the total final (Figure 8-2). Due to the highly industrial and commercial activities in this province, the
energy share in the residential sector comes to be much lower than the share at the national average.
Additionally, the reduction in energy consumption in the residential sector also can be attributed to energy
transition and energy efficiency, discussed in a later section. Comparing this result to the national level sectoral
share of the year 2011/12, we see that the share of residential energy consumption is almost half in Province 1,
while that for the industry is more than 5 times. The main reason behind this is the presence of a large number
of industries in this province. The impact of economic activity is also seen in the transport sector with the share
taking 10% at the provincial level as compared to 7% at the national level.
71
Transport
Residential 10.09%
40.85%
Construction and
mining
0.79%
Agriculture
0.72%
Commercial
2.90%
Industry
44.64%
74 PJ (21 TWh)
Figure 8-2: Energy Consumption Share in Province 1 by Sectors
The energy mix in Province 1 shows dominance of traditional renewables (biomass) (Figure 8-3). However, the
share of firewood in total biomass seems lower than previous reference results. This could have happened
because of stringent regulations regarding deforestation and access to agricultural residues as well as the
transition to modern commercial energy sources. The share of coal is high due to its demand in industries. The
share of liquid petroleum products surpasses the share of electricity consumption. It can be seen that all sectors
are still highly dependent on imported fossil fuels as shown in Table 8-4.
Comparing this result to the national level fuel-wise share of the year 2011/12, we see that the share of fuelwood
consumption is almost half in Province 1, while that of petroleum is as twice as in 2011/12. In addition to that,
the share of coal is also very high at 21% - nearly five times that of the national share, and that of electricity is
nearly twice as much at 7%. The main reason behind this is the huge economic activities in industries and the
commercial sector in this province.
Coal
21.16%
LPG
5.11% Fuelwood
37.19%
Aviation turbine
fuel
0.76%
Furnace Oil
1.57%
Kerosene
0.18%
Diesel Agricultural
13.75% Residue
Electricity Solar 9.42%
Petrol
7.10% 0.01% Biogas Animal dung
2.54%
74 PJ 0.08% 1.12%
Figure 8-3: Energy Consumption Share in Province 1 by Energy Types
The energy consumption by physiological region is shown in Figure 8-4. It includes energy consumption in the
agriculture, residential, commercial, and industry sectors in the province. Transport and construction and mining
sectors are excluded since the survey for these two sectors was carried out at the provincial level.
72
Mountain
6%
Terai
48%
Hills
46%
Mountain Hills Terai
Figure 8-4: Energy Consumption Share in Province 1 by physiological region
Firewood is still the main source of energy in the residential sector, while the industrial sector thrives on the use
of coal and diesel, primarily for thermal energy and motive power. The commercial sector is highly dependent
on electricity and LPG as sources of energy while the transport and agricultural sectors still show huge
dependency on fossil fuels. The shift from petroleum-based water pumping systems to solar PV powered can
be seen in the agricultural sector in this province as well, however, due to geographic conditions, the penetration
is lower.
73
Table 8-4: Energy Consumption in Province 1 by Sector and Fuel Type (TJ)
Renewables
Conventional renewables Non-renewables

New Renewables
Traditional biomass Modern biomass
Agricultural Animal Bio Furnace Aviation

Firewood Residue dung Biogas briquettes Solar Electricity Petrol Diesel Kerosene Oil turbine fuel LPG Coal Total
Agriculture - - - - - 0.09 0.08 534 - - - - - 534
Commercial 885 - - 0.07 0.03 0.00 617 - - - - - 642 - 2,144
Industry 2,300 6,915 - - - - 2,823 - 4,136 - 1,162 - 4 15,620 32,961
Residential 24,261 42 826 60.20 0.43 9.88 1,792 - - 40 - - 3,127 3.80 30,163
Transport - - - - - - 10 1,858 5,017 - - 563 - - 7,448
Construction and
mining 13 - - - - - 2 16 462 89 - - 2 - 585
Total 27,458 6,957 826 60 0.47 10 5,245 1,874 10,150 129 1,162 563 3,776 15,624 73,835
74
The scenario analysis has been carried out in three different economic growth scenarios. Among them, the main
are Reference Economic Growth (REF) Scenario with assumptions,
 The average GDP growth rate of 6.3%
 The shares of each demand technology in the energy supply in future years will be the same as in the
base year
And Sustainable Energy Development Scenario (SEDS) which has combined policy measures is considered an
average annual GDP growth of 6.3% for various technology Interventions. The major focus is on electrification
by renewable energy and energy efficiency in various demand technologies. The assumptions are in line with
the various published reports and documents of Nepal Governmental agencies, IEA, IRENA, Paris Agreement,
UN’s SDGs programs, and other international energy and emissions-related programs.
The following are the major assumptions of this scenario.
• GDP growth rate according to reference case i.e. 6.3%.
• The shares of energy technologies vary in line with intervening strategies
The total energy demand in province 1 is expected to grow from the current level of 74 PJ in 2019 to 105 PJ in
2030 and 298 PJ in the year 2050 which accounts for an almost four folds increase. The average annual growth
rate of energy demand is 4.6% for the reference case. Per capita, energy demand is expected to grow from 15
GJ in 2019 to 39 GJ in 2050 in this scenario. Meanwhile, in the SED scenario, the final energy demand would
grow at the rate of 4% per annum whereas electricity demand grows at an average rate of 12% per annum from
2019-to 2050. Thus, the total energy demand in 2030 and 2050 is expected to be 95 PJ and 256 PJ respectively.
Per capita, energy demand is expected to be 33 GJ in 2050.
350
300
250
200
PJ
150
100
50
0
2019 2020 2021 2025 2030 2035 2040 2045 2050
Reference SEDS
Figure 8-5: Total final energy demand in Province 1
75
8.2 Madhesh Province

Energy supply in Madhesh Province
Fuelwood Supply
The forest area in the Terai declined by 16,500 ha in the years from 2001 to 2010 and by 32,000 ha in the 19
years from 1991 to 2010. The annual rate of decrease in forest cover was 0.44% during the last nine years from
2001 to 2010 and was 0.40% during the last 19 years from 1991 to 2010/11. The annual rate of deforestation in
all 20 Terai districts was 0.06%, excluding protected areas (FRA/DFRS, 2014). In Madhesh Province also the
land under cultivation increased at cost of forest land. On the other hand, due to poverty, the demand for
fuelwood increased despite the rapid growth in the commercial energy sector in the Terai region, because the
fuelwood is practically free if people afford time for collection. A large quantity of fuelwood is being collected
from the community-managed and government-managed forests by the local people.
Table 8-5Forest Area and Actual Fuelwood Produced
Terai area Churia Total Per ha Vol in cubic Growing stock in Fuelwood produced
in ha area in ha area in ha m with branch forests in m cum in chatta
Saptari 3,584 30,595 34,179 96.42 1,949,899 85
Siraha) 3,307 2,4400 27,707 37.61 781,364 50
Dhanusa 27,218 380 27,598 29.2 805,861 8,803
Mahottari 12,009 10,050 22,059 37.61 829,639 102
Sarlahi 13,868 15,494 29,736 148 4,400,928 621
Rautahat 22,063 7,337 29,400 112.49 3,307,206 342
Bara 34,426 14,731 49,152 156.27 6,404,739 150
Parsa 77,124 0 77,124 220 2,227,630 383
Petroleum Products
All the petroleum consumed in the country is imported from India. The only company that deals with import
and sales of petroleum products – that include diesel, petrol, kerosene, and LPG is Nepal Oil Corporation Ltd.
(NOC). The furnace oils and other oil residues are imported by the industries themselves. Thus, the supply of
petroleum products is obtained from regional offices of NOC. District wise sales data for 2075-76 is as shown
in Table below. All the units for petrol or Motor Spirit (MS), Diesel and Super Kerosene Oil (SKO) are in
kiloliters except for LPG in metric ton (MT). These sales data represent the sales to depots at each district.
However, it is to be noted that neither the sales from these depots are bound within the district only nor the
supply in each district is bound by the capacity of depots only – there are inter-boundary trade and transportation
of petroleum fuels. Hence, the supply of petroleum products and their consumptions may not tally properly.
76
Table 8-6Petroleum sales in 2075-76 in Madhesh Province

MS Diesel SKO LPG
Districts
kL kL kL tons
Bara 13,113 93,779 755 482
Dhanusha 15,832 44,541 1,982 152
Mahottari 7,588 19,094 84
Parsa 14,077 46,702 864 181
Rautahat 9,480 23,829 287
Saptari 8,654 19,477 567
Sarlahi 10,644 28,708 239
Siraha 11,565 26,392 332
90,956 302,524 5,114 815
(Source: NOC 2020)
Electricity
There is no sizeable hydropower potential in Madhesh Province. All the electricity through the national grid
must be brought from other provinces. The only indigenous source of electricity could be the decentralized
gensets that are used by industries – of which reliable data are not available and all the electricity produced is
used within the industry. Thus, the main source of electricity is via the national grid distributed by Nepal
Electricity Authority (NEA). The district-wise electricity supply status as obtained from NEA for Madhesh
Province is shown in the Figure below. It shows Bara and Para have a comparatively high consumption of
electricity due to mainly the number of industries located in the districts.
400 376 364

350
300
250
GWh
200
150 129 129
100
55 56 47 40
50
-
Bara Dhanusha Mahotari Parsa Rautahat Saptari Sarlahi Siraha
Figure 8-6: Electricity Consumption in Madhesh Province in 2075 (NEA, 2019)
As per NEA, 98% of the households lie within minimal amperage capacity of 5 A, and 1% relate to 6-15 A
connection. Less than 1% have electricity connection above 16 A. In Madhesh Province, 80% of households
have access to electricity (NEA, 2019).
Modern Renewable Energy Sources

Modern Renewable energy sources include wind, biogas, solar, micro-hydro, and other renewables. Alternative
Energy and Promotion Centre (AEPC) is the leading organization working on the promotion of renewable
77
energy in Nepal. Modern energy access is gradually increasing in Nepal with the current status of electricity
access from renewables reaching 25% population. There has been a contribution of 32 MW of electricity from
mini and micro-hydro schemes, 15 MWp from solar PV systems, and around 20 kW from wind energy. More
than 1.5 million households have benefited from different renewable energy sources for cooking, lighting and
productive end uses (MoPE, 2016).
According to AEPC, the number of installed plants for solar home systems (SHS), small solar home systems
(SSHS), Mud Improved Cookstoves (MUDICS), domestic biogas and Institutional solar PV system (ISPS) in
Madhesh Province is as shown in Table below. Approximately 190 kWp from SHS, 123 kWp from SSHS, and
184 kWp from ISPS have been installed in Madhesh Province. In addition to these, solar photovoltaic pumping
system (SPVPS) has gained much popularity among farmers. There is a total of 498 SPVPS units, ranging from
a capacity of 500 Wp to 3.5 kWp. Most of the biogas plants are sized 4 cubic meters in the province. Due to the
low land of the region, there are no micro-hydro plants installed in Madhesh Province.
Table 8-7Petroleum Number of Modern Renewable Technologies Installed in Madhesh Province (AEPC, 2019)
Domestic
District SHS SSHS SPVPS MUD ICS ISPS
biogas
Bara 1,057 0 28 0 4,289 7
Dhanusha 147 21 15 9,501 820 30
Mahottari 463 679 6 3,424 1,803 9
Parsa 30 0 63 0 929 1
Rautahat 2,794 778 205 840 1,829 12
Saptari 1,176 187 44 2,008 688 5
Sarlahi 6,878 765 116 183 3,131 27
Siraha 140 44 21 4,556 626 12
Grand Total 12,685 2,474 498 20,512 14,115 103
Energy Consumption in Madhesh Province

The total energy consumption in Madhesh Province in 2019 was 63 PJ. The residential sector still dominated
the sectoral energy consumption and wood and biomass were still the primary energy source type, change in
energy mix can be observed as compared to previous studies at national and regional levels.
Sector-wise, the residential sector was still prevalent in terms of energy consumption with nearly 62%
consumption out of total final energy. However, due to massive industrial and commercial activities in this
province, the energy share in the residential sector comes to be lower than the share at the national average.
Comparing this result to the national level sectoral share of the year 2011/12, we see that the share of residential
energy consumption is lower by 20% in Madhesh Province, while that for the industry is nearly 3 times as much.
The main reason behind this is the presence of a large number of industries in this province. The impact of
economic activity is also seen in the transport sector with the share taking 9.2% at the provincial level as
compared to 7% at the national level.
78
Transport Construciton
9.20% and mining
Residential Agriculture0.42%
62.11% 1.25%
Commercial
3.45%
Industry
23.58%
63 PJ (17.5 TWh)
Figure 8-7: Energy Consumption Share in Madhesh Province by Sectors

Fuelwood is still the main source of energy in the residential sector, while the commercial sector thrives on the
use of electricity. The transport, industry, and agricultural sectors still show huge dependency on fossil fuels.
However, a shift from diesel power water pumping systems to solar-powered can be seen in the agricultural
sector.
The energy mix in province two shows dominance of traditional renewable (biomass). However, the share of
wood in total biomass seems lower than previous reference results, as the province is very much active in
agricultural activities, thus having an abundance of agricultural residue and animal wastes. The share of LPG is
nearly equal to the share of electricity, thus indicating the rise in dependence on imported fuel.
LPG
Aviation turbine 7.34%
fuel
0.10% Coal
Furnace Oil 10.51% Fuelwood
5.77% 34.60%
Kerosene
0.24%
Diesel
7.66%
Petrol Agricultural
4.76% Residue
Grid Electricity Solar Biogas Animal dung 9.38%
8.85% 0.01% 0.04% 10.73%
Bio briquettes
63 PJ 0.00%
Figure 8-8: Energy Consumption Share in Madhesh Province by Energy Types

Comparing this result to the national level fuel-wise share of the year 2011/12, we see that the share of fuelwood
consumption is almost half in Madhesh Province, while that of petroleum is as twice as in 2011/12 at the national
level. In addition to that, the share of coal is also very high at 10.5% - more than 2 times that of the national
share, and that of electricity is nearly thrice as much at 8.9%. The main reason behind this is the huge economic
activities in industries and the commercial sector in this province.
79
Table 8-8: Energy Consumption in Madhesh Province by Sector and Fuel Type (TJ)
Renewables
Nonrenewable Total
Conventional renewable New Renewables
Traditional biomass Modern biomass
Grid Aviation
Agricultural Animal Bio Solar Furnace
Fuelwood Biogas Petrol Diesel Kerosene turbine LPG Coal
Residue dung briquettes PV Electricity Oil
fuel
Agriculture - - - - 0.30 0.16 26 764 - - - - - 790
Commercial 3.59 - - 0.22 - 1,869 - - - - - 305 - 2,178
Industry 975 824 - - - 1,511 - 1,254 - 3,645 - 59 6,632 14,900
Residential 20,880 5,101 6,777 27.99 20.84 7.45 2,057 - - 151 - - 4,220 5.56 39,248
Transport - - - - - 129 2,984 2,638 - - 62 - - 5,812
Construction and mining - - - - - 23 - 187 4 - - 54 - 267
Total 21,859 5,925 6,777 28 8 5,588 3,009 4,842 155 3,645 62 4,638 6,638 63,174
80
The scenario analysis has been carried out in three different economic growth scenarios for Madhesh
Province as well. Among them, the main are Reference Economic Growth (REF) Scenario with
assumptions,
 The average GDP growth rate of 6.3%
 The shares of each demand technology in the energy supply in future years will be the same as
in the base year
And Sustainable Energy Development Scenario (SEDS) which has combined policy measures is
considered an average annual GDP growth of 6.3% for various technology Interventions. The major
focus is on electrification by renewable energy and energy efficiency in various demand technologies.
The assumptions are in line with the various published reports and documents of Nepal Governmental
agencies, IEA, IRENA, Paris Agreement, UN’s SDGs programs, and other international energy and
emissions-related programs.
The following are the major assumptions of this scenario.
• GDP growth rate according to reference case i.e. 6.3%.
• The shares of energy technologies vary in line with intervening strategies
The total energy demand in Madhesh Province is expected to grow from the current level of 63.2PJ in
2019 to 83 PJ in 2030 and189 PJ in the year 2050 which accounts for threefolds of increase. The average
annual growth rate of energy demand is 3.6% for the case. The per capita energy demand is expected
to grow from 10 GJ in 2019 to 21 GJ in 2050 in this scenario. Meanwhile, in the SED scenario, the total
energy consumption in 2030 and 2050 is expected to be 71 PJ and 144PJ respectively. Per capita, energy
demand is expected to be 16 GJ in 2050. In this scenario, the final energy demand would grow at the
rate of 3% per annum whereas electricity demand grows at an average rate of 10% per annum from
2019 to 2050.
200
180
160
140
120
PJ
100
80
60
40
20
0
2019 2020 2021 2025 2030 2035 2040 2045 2050
Reference SEDS
Figure 8-9 Total final energy demand in Madhesh Province
81
9 Conclusions
The overall energy consumption of Nepal is dominated by the use of non-commercial energy forms.
However, there is a gradual shift to commercial energy sources and renewable energy sources. The
supply and consumption situations of energy in FY 2075/76, 2076/77, and 2077/78 show a gradual
change in energy consumption patterns as a result of modern energy access and energy efficiency
improvement. However, 2020 was an exception as energy consumption decreased due to COVID where
most of the economic activities halted.
The supply situation of the energy resources in the last three fiscal years was accessed through
concerned energy institutions. The traditional energy sources include fuelwood, agri-residue, and
animal waste supply. Forest covers 45% of the total area of Nepal. The Bagmati Province of the country
has the highest total forest area (17.55%) while Madhesh Province has the lowest forest coverage area
(4.37%). The annual energy potential of the sustainable fuelwood is estimated to be 203 PJ with
Province 1 contributing the highest sustainable annual fuelwood yield (25.42%). The dry dung yield
from the livestock was estimated to be 9.7 million tons in 2019. The energy potential from the dry dung
was about 125 million GJ in the year 2019, which grew to 125 million GJ in 2020 and 127 million GJ
in 2021. The total potential supply of residue in 2021 was estimated to be 26 million tons which were
24 million tons in 2020 and 23 million tons in 2019. The equivalent potential energy from the agri-
residue was 442 million GJ in 2021 which was 406 million GJ and 416 million GJ in 2019 and 2020
respectively. The animal waste products from the livestock were estimated to be 6.8 million tons in
2019 which grew at the rate of 0.35% in 2020 and 1.1% in 2021. The energy potential from the dry
dung was about 101.6 million GJ in the year 2019, which grew to 102 million GJ in 2020 and 103
million GJ in 2021
Modern energy resources include solar, wind, MHP, and waste-to-energy. The potential supply of solar
is estimated to be 2100 MW in the country but the yield is limited to 22MW at a large utility scale. The
installed capacity of micro-hydropower plants is 38 MW where the potential supply is more than
50MW. Wind on the other hand has the supply potential of 3000MW where the yield is limited. With
the increasing municipal waste generation, the average organic waste per municipality amounted to
about 1,200 tons. According to a recent study, 130294 m3 of biogas can be generated by utilizing 100%
of the organic fraction of municipal solid waste(OFMSW) in Kathmandu. The biogas produced can be
used to fill up 21,045 LPG cylinders per day which can save NRs 515 million.
The commercial energy sources include electricity, coal, and petroleum products. The total installed
capacity reached 2023 MW as of February 2022. The planned and proposed hydropower projects under
NEA stand at 3,219.2 MW and that of IPPs is 6,172.75 MW as of FY 2020/21. To reach 100%
electrification by 2023, the development of hydropower plants is gaining momentum in the country as
the country even started to export some of the excess energy in the wet season. Coal and petroleum
products that are mostly used in industries and transport are 100% imported with an insignificant
amount of own coal production.
The energy consumption indicates an increasing trend with a slight dip in 2020 due to the global
pandemic. The consumption in the year 2020/21 has reached 626 PJ which was 552 PJ in 2020 and 587
PJ in 2019. There was approximately a 4% reduction in energy consumption in 2020 due to the
nationwide lockdown. However, in 2021 as the impact slowly decreased, the economic activities
resumed and energy consumption grew at the rate of 11% from the previous year. The import of
petroleum products (except LPG) decreased by more than 10% whereas LPG consumption increased at
the rate of 5% in 2020 and 6% in 2021. The energy consumption by sources shows 68% of the
82
consumption of traditional energy followed by 30% commercial and remaining renewables. There is
still a dominance of fuelwood in energy with a total share of 62%, followed by 15% liquid petroleum,
7% coal, 4.3% electricity, 3.6% LPG, 3% agri-residue, and 3% animal waste, and 2.45% renewables in
2021. The sectoral energy consumption has also changed over the last decade. In 2021, the residential
sector consumed 62.8% followed by industry (15.7%), commercial sector (7.4%), transport (6.0%)
agriculture (4.2%), and construction and mining (3.9%).
Final energy intensity indicates the rate of energy consumption and energy efficiencies. The final energy
intensity in 2021 was calculated to be 21.35 GJ per capita which grew slightly from 2019. The energy
intensity in the residential sector has decreased from about 14 GJ per capita in 2010 to 13.86 GJ per
capita with the increasing access to modern energy, as well as clean energy technology penetrations.
The electricity intensity is improving with the use of more efficient electric technologies. The electricity
(including off-grid electricity) per capita increased from 228 in 2019 to 232 in 2020 and 265 in 2021.
It shows the increasing use of clean energy in the country. Meanwhile, the residential electricity
consumption has reached 480 kWh per household. The share of energy in national consumption shows
a traditional energy share of 65%, imported energy share of 28.7%, and renewable energy (including
electricity) share of 6% in 2021.
With the increasing energy consumption, the import of commercial energy resources is increasing. Also,
the indigenous production of electricity and its consumption is growing lately with the nation aiming to
generate 10,000 MW by 2028 and 100% electrification by 2023. There is a gradual shift in modern
renewables as well with the increasing access to modern energy. Recently Nepal submitted the Second
Nationally Determined Contributions (NDC) which also intends to reduce GHG emissions and
emphasized the long-term strategy for Net-zero emissions by 2050, to achieve the target Nepal needs a
paradigm shift from traditional energy sources to indigenous clean energy sources.
Recommendations
 The precise energy synopsis could be developed through the harmonized database and
information system from the concerned institutions. The National Energy Information System
(NEIS) is expected to bring it into action.
 The energy supply and consumption situation of a federal system of Nepal for province 1,
Madhesh Province, and Bagmati province have already been completed and situation analysis
of the remaining four provinces is undergoing. An integrated provincial energy analysis will
give the updated nation energy scenario
 The more detailed information/data can increase the accuracy in estimation of renewable energy
generation from isolated/distributed renewable energy systems
 The updated data on energy could be obtained with the inclusion of energy-specific questions
in the annual household survey, National Living Standard survey, and sectoral surveys carried
out by Central Bureau of Statistics
 The introduction of separate code for the energy related commodities by the Department of
Custom could also provide the supply sources data for verification
83
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Farm in Kaligandaki Riverbank of Mustang District. Nepal J. Sci. Technol., p. 159–166.
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[Accessed 2022].
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way toward achieving sustainable development goals. Sustain. Dev., p. 906–914.
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Nepal: Ministry of Forests and Environment, Singhadurbar.
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Nepal: Ministry of Forests and Soil Conservation .
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86
ANNEX
87
Annex I. GDP Structure

Gross Value Added by Industrial Division May12,2022
Rs. millions (at constant 2010/11 prices) CBS, 2022
NSIC Industrial Classification 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
R P
A Agriculture, forestry and fishing 480 506 512 535 542 541 569 584 614 629 647 662
B Mining and quarrying 9 9 9 10 11 10 12 13 15 15 16 17
C Manufacturing 84 93 95 101 101 92 107 117 124 113 118 125
D Electricity, gas, steam and air conditioning supply 14 17 17 17 17 16 20 22 24 28 29 40
E Water supply; sewerage, waste management and remediation activities 9 10 11 12 13 14 15 15 16 16 16 16
F Construction 93 93 95 104 107 107 127 142 153 146 154 168
G Wholesale and retail trade; repair of motor vehicles and motorcycles 221 227 233 247 258 251 278 326 352 312 330 360
H Transportation and storage 77 83 89 95 101 101 105 118 128 113 118 123
I Accommodation and food service activities 25 26 28 28 30 27 31 35 38 24 27 30
J Information and communication 31 40 44 56 62 63 71 73 78 80 81 84
K Financial and insurance activities 69 70 71 76 81 88 97 106 113 112 117 124
L Real estate activities 143 145 148 151 153 153 160 162 168 172 176 182
M Professional, scientific and technical activities 12 13 14 15 16 16 17 18 19 19 20 21
N Administrative and support service activities 6 6 7 8 9 10 12 14 15 15 16 16
O Public administration and defense; compulsory social security 64 66 70 73 79 81 87 91 96 102 105 109
P Education 75 80 84 88 93 100 107 113 120 124 129 134
Q Human health and social work activities 17 18 18 19 21 22 23 25 26 28 29 31
R, S, T, Arts, entertainment and recreation; Other service activities; and Activities of 7 7 7 7 8 8 9 9 10 10 10 11
U households as employers; undifferentiated goods- and services-producing
activities of households for own use
Gross Domestic Product(GDP) at basic prices 1,436 1,507 1,554 1,643 1,700 1,700 1,847 1,983 2,109 2,058 2,137 2,254
Taxes less subsidies on products 123 125 136 148 162 170 192 211 230 226 244 266
Gross Domestic Product (GDP) 1,559 1,632 1,690 1,791 1,862 1,870 2,038 2,194 2,340 2,284 2,381 2,520
R = Revised/P = Preliminary
88
Annex II. Forest Data
Forest Distribution by type

Area (000 ha)
Tree Cover Other Percent
Forest Total
SN Province 5-10% Shrubs OWL land share
1 Province 1 1,034.17 82.42 17.75 100.17 1,476.72 2,611.06 17.35
2 Madhesh 260.76 2.07 0.80 2.87 695.34 958.97 4.37
3 Bagmati 1,046.21 38.57 6.09 44.67 939.43 2,030.30 17.55
4 Gandaki 739.60 83.23 16.32 99.55 1,429.16 2,268.32 12.41
5 Lumbini 968.37 30.31 18.91 49.22 963.27 1,980.85 16.24
6 Karnali 902.82 168.02 47.50 215.52 1,828.31 2,946.65 15.14
7 Sudurpaschim 1,010.21 126.44 9.46 135.90 831.26 1,977.37 16.94
8 Entire Country 5,962.13 531.06 116.83 647.89 8,163.49 14,773.51 100
Land Cover Area by Physiographic Region (ha)

Physiographic Region Forest Other Wooded Land (OWL) Other Total
Land
Tree crown cover Shrub Total
5-10% OWL
Terai 411,580 5,573 3,930 9,503 1,595,916 2,016,999
Churia 1,373,743 22,336 336 22,672 501,848 1,898,263
Middle Mountains 2,253,807 29,308 32,979 62,287 1,993,302 4,309,396
High Mountains 1,922,909 473,850 79,581 553,431 4,072,426 6,548,766
National total 5,962,039 531,067 116,826 647,893 8,163,492 14,773,424
Community forest in Nepal

Community Forest Beneficiaries Beneficiaries Forest area Forest Area Forest area
groups area (ha) (Households) (Population) covered w.r.t Managed by covered
Province % Community % w.r.t Nepal
%
Province 1 4,832 551,791 701,771 3,621,360 48.65 17.35 8.35
Madhesh 619 125,947 617,228 3,611,242 47.77 3.96 1.90
Bagmati 8,213 593,495 695,165 3,483,552 54.41 18.66 8.98
Gandaki 5,168 449,665 523,592 2,919,897 55.02 14.14 6.80
Lumbini 4,657 576,570 865,040 4,753,860 59.17 18.12 8.72
Karnali 3,532 375,918 333,858 1,846,745 31.77 11.82 5.69
Sudurpaschim 4,447 507,580 587,733 3,370,144 44.29 15.96 7.68
31,468 3,180,966 4,324,387 23,606,800 100.00 48.12
89
Annex III. Agriculture Data
Agri-residue supply potential in 2018/19 (MoALD 2020; MoALD 2021)
Production in tons
total residue Total potential
paddy Maize Wheat Millet
in tons energy 000 GJ
Mountain 150,376 221,484 80,556 58,825 1,195,115 19,306
Hills 1,206,132 1,780,487 544,642 241,024 8,896,653 145,092
Terai 4,253,507 711,663 1,380,470 14,374 13,470,433 242,078
5,610,015 2,713,634 2,005,668 314,223 23,562,201 406,476
Province 1 1,237,954 831,379 192,249 97,180 5,310,782 89,914

Madhesh 1,495,045 161,764 582,565 1,663 4,712,008 85,276
Bagmati 521,446 598,000 159,444 69,465 3,140,415 51,819
Gandaki 427,689 423,308 93,433 99,740 2,396,745 39,369
Lumbini 1,188,675 369,898 496,117 10,869 4,489,926 79,184
Karnali 133,580 217,060 161,690 19,674 1,255,635 20,735
Sudurpashchim 605,626 112,225 320,170 15,632 2,256,689 40,179
5,610,015 2,713,634 2,005,668 314,223 23,562,201 406,476
Agri-residue supply potential in 2019/20

Production in tons
Mountain 825,622 692,844 255,953 97,746 4,272,223 71,528
Hills 1,480,279 1,433,302 552,777 157,892 8,352,584 139,322
Terai 3,244,977 709,531 1,376,562 65,316 11,572,396 205,727
5,550,878 2,835,677 2,185,292 320,954 24,197,203 416,577
Province 1 1,245,545 867,717 176,710 95,201 5,384,039 91,007

Madhesh 1,420,437 175,640 601,708 1,641 4,645,958 83,835
Bagmati 510,200 617,762 168,431 69,675 3,192,337 52,570
Gandaki 408,737 433,561 99,400 106,138 2,413,583 39,485
Lumbini 1,185,493 398,462 508,459 11,784 4,590,492 80,744
Karnali 134,407 225,238 196,296 20,404 1,359,647 22,495
Sudurpashchim 646,059 117,297 434,288 16,111 2,611,147 46,440
5,550,878 2,835,677 2,185,292 320,954 24,197,203 416,577
90
Agri-residue supply potential in 2020/21

Production in tons
Mountain 880,092 735,613 271,080 99,212 4,532,042 75,930
Hills 1,577,939 1,521,780 585,446 160,260 8,862,271 147,909
Terai 3,459,061 753,330 1,457,916 66,296 12,299,437 218,716
5,917,091 3,010,723 2,314,441 325,768 25,693,750 442,554
Province 1 1,327,718 921,281 187,153 96,629 5,716,718 96,689

Madhesh 1,514,149 186,482 637,269 1,666 4,940,864 89,169
Bagmati 543,860 655,896 178,385 70,720 3,386,045 55,795
Gandaki 435,703 460,325 105,274 107,730 2,555,326 41,850
Lumbini 1,263,705 423,059 538,509 11,961 4,879,607 85,848
Karnali 143,274 239,142 207,897 20,710 1,441,589 23,860
Sudurpashchim 688,682 124,538 459,954 16,353 2,773,601 49,344
5,917,091 3,010,723 2,314,441 325,768 25,693,750 442,554
91
Annex IV. Animal waste Data
Animal waste production in 2018/19 (MoALD 2020; MoALD 2021)

Livestock population
Actual dry dung
Total annual dry dung
Cattle Buffalo production in 000 GJ
potential in tons
tons
Mountain 858,598 511,389 439,958 307,971 4,595
Hills 3,166,029 3,405,028 4,488,371 3,141,860 46,877
Terai 3,360,410 2,952,831 4,809,214 3,366,450 50,227
7,385,037 6,869,248 9,737,542 6,816,280 101,699
Province 1 1,955,096 1,099,983 1,930,654 1,351,458 20,164

Madhesh 1,111,055 1,088,366 1,689,926 1,182,948 17,650
Bagmati 1,045,119 1,158,202 1,453,222 1,017,255 15,177
Gandaki 551,162 892,222 1,065,422 745,796 11,127
Lumbini 1,141,280 1,513,009 1,985,353 1,389,747 20,735
Karnali 550,981 441,135 599,498 419,649 6,261
Sudurpashchim 1,030,344 676,331 1,013,467 709,427 10,585
7,385,037 6,869,248 9,737,542 6,816,280 101,699
Animal waste production in 2019/20

Total annual dry dung Actual dry dung
Cattle Buffalo 000 GJ
potential in tons production in tons
Mountain 864,797 472,833 418,743 293,120 4,373
Hills 3,130,491 3,331,954 4,405,409 3,083,786 46,010
Terai 3,463,597 3,032,797 4,947,350 3,463,145 51,670
7,458,885 6,837,584 9,771,502 6,840,051 102,054
Province 1 1,981,755 1,108,914 1,962,605 1,373,823 20,497

Madhesh 1,247,124 1,085,427 1,775,510 1,242,857 18,543
Bagmati 1,064,349 1,177,093 1,474,284 1,031,999 15,397
Gandaki 481,865 886,109 1,018,662 713,063 10,639
Lumbini 1,162,262 1,560,072 2,039,490 1,427,643 21,300
Karnali 504,184 396,145 521,985 365,390 5,452
Sudurpashchim 1,017,346 623,824 978,965 685,276 10,224
7,458,885 6,837,584 9,771,502 6,840,051 102,054
92
Animal waste production in 2020/21

Total annual dry dung Actual dry dung
Cattle Buffalo 000 GJ
potential in tons production in tons
Mountain 869,381 479,879 423,583 296,508 4,424
Hills 3,147,085 3,380,732 4,457,848 3,120,494 46,558
Terai 3,481,957 3,077,812 4,999,359 3,499,551 52,213
7,498,423 6,938,423 9,880,790 6,916,553 103,195
Province 1 1,992,260 1,124,990 1,981,956 1,387,369 20,700

Madhesh 1,253,735 1,101,389 1,794,017 1,255,812 18,737
Bagmati 1,069,991 1,194,479 1,491,846 1,044,292 15,581
Gandaki 484,419 899,031 1,031,602 722,121 10,774
Lumbini 1,168,423 1,583,134 2,063,833 1,444,683 21,555
Karnali 506,857 401,921 527,950 369,565 5,514
Sudurpashchim 1,022,739 633,478 989,587 692,711 10,335
7,498,423 6,938,423 9,880,790 6,916,553 103,195
93
Annex V. Solar PV systems and Projects
NEA Solar Projects Under Operation (DoED, 2021)

S.N. Projects Capacity(KW)
1 Simikot 50
2 Gamgadhi 50
3 Battar (Nuwakot) 1250
Total 1350
IPP's Solar Projects Under Operation

S.N. Developer Project Location Capacity
(kW)
1 Kathmandu Upatyaka Khanepani bewasthapan Solar Lalitpur 680.4
Board
2 Surya Power Company Pvt. Ltd. Bishnu Priya Solar Farm Project Nawalparasi 960
3 Ridi Hydropower Development Co. Ltd. Butwal Solar Project Rupandehi 8500
4 Eco Power Development Company Pvt. Ltd Mithila Solar PV Electric Project Dhanusha 10000
Solar projects provided with construction license

S. Project Capacity Promoter VDC/District
N. (MW)
1 Block No 1 Solar Farms Project 5.1 Nepal Electricity Authority Charghare (Nuwakot)
2 Block No 2 Solar Farms Project 8.3 Nepal Electricity Authority Charghare (Nuwakot)
3 Bel Chautara Solar Farm Project 5 Solar Farm Pvt. Ltd. Khairenitar (Tanahu)
4 Som Radha Krishna Solar Farm Project 4.4 Nepal Solar Farm Pvt. Ltd Rupakot (Kaski)
5 Solar PV Pratappur 5 National Solar Power Company Pratappur
(Nawalparasi)
6 Chandranigahpur Solar Project 4 Api Power Company Pvt. Ltd Chandranigahapur
(Rautahat)
7 Bhrikuti Solar Power Project 9 First Solar Developers Nepal Pvt. Barakulpur
Ltd. (Kapilbastu)
8 Grid Connected Solar Project Block 4, 1.37 Nepal Electricity Authority Bidur N.P. (Nuwakot)
Nuwakot
9 Grid-Connected Solar Power Project, 3 Sagarmatha Energy & Dhalkebar (Dhanusha)
Dhalkebar, 33 kV S/S Construction Pvt. Ltd.
10 Grid Connected Solar PV Project, Ramgram, 2 Saurya Bidhyut Power Pvt. Ltd
Nawalparasi
11 Grid-Connected Solar Power Project, Duhabi, 8 Global Energy & Construction Duhabi (Sunsari)
33 kV S/S Pvt. Ltd.
12 Utility Scale Solar PV 6.8 G I Solar Pvt. Ltd, Banigama (Morang)
13 Solar PV Project Banke, block-2 10 Pure Energy Pvt. Ltd Raniyapur (Banke)
14 Solar PV Project, Raniyapur, Block 1 10 Pure Energy Pvt. Ltd Raniyapur (Banke)
15 Grid Connected Solar PV Project, Ganeshpur, 10 Positive Energy Pvt. Ltd Ganeshpur
Kapilbastu (Kapilbastu)
16 Solar Power Project, Dhalkebar 11 kV S/S 1 Api Power Company Ltd. Dhalkebar (Dhanusha)
17 Baigundhara Solar PV project 5 East Solar Pvt. Ltd Gaurandaha (Jhapa)
18 Mithila 2 Solar PV Project, Dhanusa 10 Eco Power Development Pvt. Ltd. Begadawar
(Dhanusha)
19 Dharamnagar Solar Farm Project 10 Pashupati Renewables Pvt. Ltd. Birpur (Kapilbastu)
94
Solar projects provided with survey license

S.N. Project Capacit Promoter VDC/District
y (MW)
1 Bhadrapur Solar PV Project 5 Rairang Hydropower Development Bhadrapur NP
Company Ltd (Jhapa)
2 Grid Connected Solar PV Project, 1.2 G.C.Solar Energy Group BirendraNagar N.P.
Birendranagar Surkhet (Surkhet)
3 Grid Connected Solar PV Project, Lamahi 10 Pioneer Energy Pvt. Ltd Satbariya (Dang)
4 Grid Connected Solar PV Project, Lamahi 1 10 Progressive Energy Pvt. Ltd Satbariya (Dang)
5 Grid Connected Harmony Solar Farm, Bardiya 5 Harmony Solar Pvt. Ltd Neulapur (Bardiya)
6 Kalikhola Solar PV Project 3 Goodluck Glocal Power Energy Pvt. Bidur N.P.
Ltd (Nuwakot)
7 Birgunj Solar PV Project 7 Kantipur Energy Investment & Itiyahi (Bara)
Construction Pvt. Ltd.
8 Mithila Solar Project 5 Solar Star Pvt. Ltd. Hariharpur
(Dhanusha)
9 Jira Bhawani Sedawa PV Project 7.7 Tarai Solar Pvt. Ltd. Sedhawa (Parsa)
10 Pratappur Solar PV Project 10 National Solar Power Company Pratappur
(Nawalparasi)
11 Belbari Solar PV Project 10 Shreeyanshi Urja Pvt. Ltd. Belbari (Morang)
12 Bhangaha Solar PV Project, Mahottari 100 Mithila Energy Pvt. Ltd. Loharpatti
(Mahottari)
13 Tek Samundra Solar PV Projecty, Thakurbaba 5 Tek Samundra Khetibari Pvt. Ltd. Neulapur (Bardiya)
14 Parwanipur Solar PV Project 8 Api Power Company Ltd. Rampur Tokani
(Bara)
15 Udyapur Solar PV Project 10 Sunlight Energy Pvt. Ltd Jogidaha, Gaighat
(Udayapur)
16 250MW Grid connected Solar Project in 250 Risen Clean Energy Nepal Pvt. Ltd.
Kohalpur and Banganga
17 Jhimruk On Grid Solar Project 7 Butwal Power Company Limited Khaira (Pyuthan)
18 Sonaha Solar Farm Project 10 Bharati Laxmi Energy Pvt. Ltd Suryapatawa
(Bardiya)
19 Lahan Solat PV Project 10 Eco Sun Power Development Pvt. Ltd Lahan N.P. (Siraha)
20 Lalbandhi Solar PV Project 10 Eco Gham Power Company Pvt. Ltd. Lalbandi (Sarlahi)
21 Solududhakuna Solar PV Project 10 Gham Kheti Pvt. Ltd. Tingla
(Solukhumbu)
22 Kalikhola-A Solar Electricity Project 7 Goodluck Glocal Power Energy Pvt.
Ltd
23 Dharamnagar Solar Farm-II 15 Pashupati Renewables Pvt. Ltd.
24 Nepalgunj SVP Power Plant 200 G.T. Energy Pvt.Ltd.
25 Jhapa SPV Power Plant 300 G.T. Energy Pvt.Ltd. Surunga (Jhapa)
26 Solar PV Plant Block 2, Kailali 10 Advik energy Limited Godawari (Kailali)
27 Solar PV Plant, Block-1, Kailali 10 Advik energy Limited Godawari (Kailali)
28 Amarawati Solar Project Part 1 10 Amarawati Solar Energy Pvt. Ltd Godawari (Kailali)
29 Amarawati Solar Project Part 2 10 Amarawati Solar Energy Pvt. Ltd Godawari (Kailali)
30 Gami Solar Energy Project 3 Gami Telecom Solutions and Begadawar
Infrastructure Pvt. Ltd. (Dhanusha)
95
Solar Projects which have applied for construction license

S No Project Capacity Promoter VDC/District
(MW)
1 Grid-Connected Solar Power Project, 4 Asian Tech Corporation Lahan N.P. (Siraha)
Lahan , 33 kV S/S Pvt. Ltd.
2 Solar Power Project, Simara, 11 kV 1 Api Power Company
S/S Ltd.
3 Grid Connected Solar PV Project Part 10 Positive Energy Pvt. Ganeshpur (Kapilbastu)
II, Kapilbastu Ltd
4 Grid Connected Solar Project, 10 Jhapa Energy Limited Panchganchi (Jhapa)
Shivasatakshi Jhapa
5 Grid Tied Solar Farm Project 3.09 Nepal Electricity Charghare (Nuwakot)
Authority
6 Grid Tied Solar Farm Project Block n. 6.5 Nepal Electricity Bidur N.P. (Nuwakot)
5 Authority
96
Annex VI. Waste Data
Annual Average Waste Collection per Municipality by Waste Types and Categories
Waste FY Metropolitan Sub Municipality Annual Average of Daily Average of
Type City Metropolitan (mt/Year) Municipalities (mt/ Municipalities
(mt/Year) City Year/Municipality) (mt/
(mt/Year) Day/Municipality)
Organic FY 12,734.00 2,269.80 829.8 1,153.30 3.2
2073/74
FY 13,478.00 3,044.20 950 1,214.60 3.3
2074/75
FY 10,669.50 4,088.20 824.2 1,206.10 3.3
2075/76
Inorganic FY 8,787.00 1,005.70 518.3 698 1.9
2073/74
FY 9,725.00 1,338.70 504.6 666.8 1.8
2074/75
FY 7,100.00 1,525.90 551.9 743.5 2
2075/76
Other FY 5,145.00 228 194.8 379.6 1
2073/74
FY 5,446.00 213.5 155.6 283 0.8
2074/75
FY 6,200.00 229.7 177.5 283 0.8
2075/76
Total FY 26,666.00 3,503.50 1,543.00 2,231.00 6.1
2073/74
FY 28,649.00 4,596.30 1,610.20 2,164.40 5.9
2074/75
FY 23,969.50 5,843.70 1,553.60 2,232.70 6.1
2075/76
Annual Average Organic Waste Collection per Municipality by Years

Waste Type FY Metropolitan City Sub-Metropolitan Municipality Average
City
Textile (mt) FY 2073/74 3,811.00 141.3 117 183.1
FY 2074/75 4,034.00 162 106.3 159.5
FY 2075/76 2,514.50 146.8 124.2 173.1
Leather (mt) FY 2073/74 2,018.00 16.3 62.3 114.2
FY 2074/75 2,136.00 20.3 55.3 96.5
FY 2075/76 1,342.00 19.8 50 86.3
Paper (mt) FY 2073/74 4,708.00 169 131.7 221.8
FY 2074/75 4,983.00 202.3 137.9 207
FY 2075/76 3,494.00 735.4 107.1 207.3
Agricultural/Garden FY 2073/74 1,076.00 699.7 444.2 472.8
management (mt)
FY 2074/75 1,139.00 836 536.4 558.8
FY 2075/76 2,343.00 1,808.00 393.9 506.3
Other Organic (mt) FY 2073/74 1,121.00 1,243.50 74.7 161.5
FY 2074/75 1,186.00 1,823.50 114 192.8
FY 2075/76 976 1,378.30 148.9 233.2
Total of Organic FY 2073/74 12,734.00 2,269.80 829.8 1,153.30
Waste (mt)
FY 2074/75 13,478.00 3,044.20 950 1,214.60
FY 2075/76 10,669.50 4,088.20 824.2 1,206.10
97
Average Quantity of Waste Collected from Different Sources and Municipal Categories
Industrial Health
Business Educational
Household House/ Institutions/ Total
House/Commercial Institutes
Categories waste
Complex waste
District
waste
Hospitals Other(kg/day) Quantity
(kg/day) waste waste (kg/day)
(kg/day) (kg/day)
(kg/day) (kg/day)
Metropolitan 37340
15920 (42.6) 7720 (20.7) 4460 (11.9) 4680 (12.5) 4560 (12.2) -
City (100.0)
Sub-
10973
Metropolitan 3316 (30.2) 3025 (27.6) 1544 (14.1) 1322 (12.1) 594 (5.4) 1171 (10.7)
(100.0)
City
Municipality 1441 (38.9) 932 (25.2) 310 (8.4) 358 (9.7) 381 (10.3) 282 (7.6) 3704 (100.0)
Overall 1784 (38.6) 1142 (24.7) 436 (9.5) 477 (10.3) 467 (10.1) 313 (6.8) 4619 (100.0)
98
Annex VII. Hydropower Plants
NEA developed hydropower plants in different provinces ( NEA, 2021)

S. Total Installed Capacity Actual Generation (MWh)
Power Stations District
No. (MW) 2075/76 2076/77 2077/78
Province 1
1 Puwa Ilam 6.2 34,193 34,915 34,477
2 Chatara Sunsari 3.2 2,698 1,822 3,352
3 Multifuel Morang 39 3 0
Total 48.4 36,891 36,739 37,829
Bagmati Province
1 Upper Trishuli 3A Rasuwa, Nuwakot 60 16,186 407,551 314,768
2 Kulekhani I Makwanpur 60 91,184 162,972 195,157
3 Kulekhani II Makwanpur 32 44,677 81,483 95,229
4 Trishuli Nuwakot 24 123,741 128,973 121,211
5 Devighat Nuwakot 15 86,851 92,053 85,429
6 Kulekhani III Makwanpur 14 0 20,365 35,565
7 Sunkoshi Sindupalchowk 10.05 62,157 62,246 55,917
8 Panauti Kavrepalankchowk 2.4 3,006 2,887 2,948
9 Sundarijal Kathmandu 0.64 3,587 2,815 3,922
10 Pharping Kathmandu 0.5
11 Hetauda Diesel Makwanpur 14.41 116 57 54
Total 233 431,504 961,403 910,201
Gandaki
1 Kaligandaki 'A' Syangja 144 871,914 871,466 817,713
2 Mid-Marsyangdi Lamjung 70 471,323 446,625 398,846
3 Marsyandi Tanahu 69 475,176 443,852 398,920
4 Modi Parbat 14.8 69,401 66,913 60,471
5 Seti Kaski 1.5 10,030 11,158 11,682
6 Fewa Kaski 1 1,532 2,127 1,851
Total 300.3 1,899,375 1,842,141 1,689,483
Lumbini Province
1 Gandak Parasi 15 11,951 10,338 12,123
Total 15 11,951 10,338 12,123
Sudurpashchim
1 Chameliya Darchula 30 161,396 160,812 151,247
Total 30 161,396 160,812 151,247
GRAND TOTAL 626.7 2,541,116 3,011,432 2,800,883
99
NEA Under Construction, Planned and Proposed Hydropower Plants in different provinces (
NEA, 2021)
NEA Hydropowers Under Construction
Project District Capacity(KW)
Bagmati Province
1 Upper Tamakoshi Hydropower Project Dolakha 456
4 Upper Sanjen Rasuwa 14.6
5 Sanjen Rasuwa 42.5
6 Rasuwagadi Rasuwa 111
7 Madhya Bhotekoshi Sindhupalchowk 102
8 Upper Trishuli 3B Rasuwa/ Nuwakot 37
Total 763.1
Gandaki Province
2 Tanahu Hydropower Project Tanahu 140
3 Rahuganga HEP Myagdi 40
Total 180
GRAND TOTAL 943.1
NEA Hydropower Planned and Proposed

SN Hydropowers District Capacity(KW)
Province 1
1 Upper Arun HEP Sankhuwasabha 1061
4 Dudhkoshi Storage HEP Khotang/ Okhaldhunga 635
Total 1696
Bagmati Province
6 Tamakoshi V HEP Dolakha 95
Total 95
Gandaki Province
2 Upper Modi A HEP Kaski 42
3 Upper Modi HEP Kaski 18.2
5 Uttar Ganga Storage HEP Baglung 828
7 Aadhikhola Storage HEP Syangja 180
9 Begnas Rupa Pump Storage HEP Kaski 150
Total 1218.2
Sudurpashchim
8 Chainpur Seti HEP Bajhang 210
Total 210
Total 3219.2
IPPs Operation, Under Construction, Planned and Proposed Hydropower Plants in different
provinces
IPPs operation IPPs under construction IPPS Planned Projects
Installed capacity MW MW Installed capacity MW
Province 1 236.8 700.596 378.842
Madhesh 13 14 14
Bagmati 255.7714 1875.933 618.278
Gandaki 255.088 748.901 814.105
Lumbini 24.61 11.415 11.885
Karnali 8.55 28.85 12
Sudurpashchim 20.826 127.09 2.233
814.6454 3506.785 1851.343
100
Annex VIII. Petroleum Data
Petroleum products import in different FY in different provinces (NOC, 2021; DOC, 2021)
Petrol(KL) Diesel (KL) Kerosene (KL) ATF (KL) LPG (MT)
F.Y. 2075-76
Province 1 105,907 298,545 4,780 7,740 72,534
Madhesh 130,376 593,584 8,284 - 265,060
Bagmati 184,624 260,496 4,620 175,056 -
Gandaki 30,640 73,060 1,000 3,880 -
Lumbini 94,648 404,772 5,660 10,992 82,587
Karnali - - - - -
Sudurpashchim 20,632 84,448 660 2,440 9,429
Total 566,827 1,714,905 25,004 200,108 429,609
F.Y. 2076-77
Province 1 89,664 130,088 2,760 6,588 78,059
Madhesh 133,276 805,088 9,392 - 267,522
Bagmati 153,620 144,688 2,940 118,264 -
Gandaki 26,360 49,800 340 2,820 -
Lumbini 88,724 267,308 2,900 8,004 93,577
Karnali - - - - -
Sudurpashchim 20,484 76,564 592 1,748 9,905
Total 512,128 1,473,536 18,924 137,424 449,063
F.Y. 2077-78
Province 1 111,724 89,024 4,168 5,584 88,169
Madhesh 149,104 1,129,966 9,500 - 259,376
Bagmati 165,308 52,580 3,400 56,060 -
Gandaki 29,680 30,928 - 1,300 -
Lumbini 109,652 298,616 5,860 7,656 117,009
Karnali - - - - -
Sudurpashchim 26,232 95,088 656 1,664 13,198
Total 591,700 1,696,202 23,584 72,264 477,752
101
Petroleum products Sales in different FY in different provinces

Petrol(KL) Diesel (KL) Kerosene (KL) ATF (KL) LPG (MT)
F.Y. 2075-76
Province 1 79,822 234,772 4,507 6,185 60,008
Madhesh 125,427 589,913 8,069 - 265,060
Bagmati 215,461 339,297 5,658 177,679 12,525
Gandaki 23,129 117,383 1,105 6,293 34,485
Lumbini 67,235 264,490 4,059 3,704 48,103
Karnali 31,192 71,923 986 3,854 -
Sudurpashchim 20,599 84,378 700 2,421 9,429
562,866 1,702,157 25,086 200,137 429,609
F.Y. 2076-77
Province 1 76,937 234,828 3,609 4,755 57,770
Madhesh 46,178 141,169 1,999 698 267,522
Bagmati 179,912 264,156 3,923 121,242 20,289
Gandaki 21,708 95,650 1,012 4,533 36,952
Lumbini 62,175 225,086 3,157 2,877 56,624
Karnali 27,439 61,671 745 2,822 -
Sudurpashchim 20,481 77,446 613 1,753 9,905
434,831 1,100,006 15,058 138,680 449,063
F.Y. 2077-78
Province 1 89,780 268,151 3,924 4,329 65,592
Madhesh 41,942 114,219 1,865 717 259,376
Bagmati 192,346 293,012 4,583 56,228 22,577
Gandaki 27,515 122,820 1,328 4,173 40,232
Lumbini 76,227 289,773 4,832 1,970 76,777
Karnali 30,892 64,739 1,472 1,326 -
Sudurpashchim 26,101 95,176 703 1,656 13,198
484,803 1,247,890 18,707 70,400 477,752
102
Annex IX. Energy Consumption
2019
Category Fuel Type Energy (000 GJ) 000 TOE GWh % of National Total
Fuelwood 365,088.96 8,720.00 101,413.60 62.03%
Agricultural Residue 18,045.11 431.00 5,012.53 3.07%
Traditional
Animal Waste 18,840.60 450.00 5,233.50 3.20%
401,974.67 9,601.00 111,659.63 68.30%
Kerosene 889.87 21.25 247.19 0.15%
Petrol 18,735.01 447.48 5,204.17 3.18%
Diesel 63,604.81 1,519.17 17,668.00 10.81%
ATF 6,306.28 150.62 1,751.75 1.07%
Commercial LPG 19,605.69 468.27 5,446.02 3.33%
Furnace Oil 1,221.93 29.19 339.43 0.21%
Coal 40,780.08 974.02 11,327.80 6.93%
Electricity 22,864.38 546.11 6,351.22 3.88%
174,008.06 4,156.11 48,335.57 29.56%
Biogas 8,174.99 195.26 2,270.83 1.39%
Solar 4,080.09 97.45 1,133.36 0.69%
Renewable Wind 1.04 0.02 0.29 0.00%
Micro/Pico Hydro 325.94 7.79 90.54 0.06%
12,582.07 300.52 3,495.02 2.14%
Total 588,564.80 14,057.63 163,490.22 100.00%
2020
Category Fuel Type Energy (000 GJ) 000 TOE GWh % of National Total
Fuelwood 366,847.42 8,762.00 101,902.06 64.87%
Agricultural Residue 18,254.45 436.00 5,070.68 3.23%
Traditional
Animal Waste 17,877.64 427.00 4,966.01 3.16%
402,979.50 9,625.00 111,938.75 71.26%
Kerosene 681.51 16.28 189.31 0.12%
Petrol 14,473.37 345.69 4,020.38 2.56%
Diesel 41,104.14 981.76 11,417.82 7.27%
ATF 4,369.79 104.37 1,213.83 0.77%
Commercial LPG 20,493.49 489.48 5,692.64 3.62%
Furnace Oil 373.99 8.93 103.89 0.07%
Coal 43,203.07 1,031.89 12,000.85 7.64%
Electricity 23,200.05 554.12 6,444.46 4.10%
147,899.40 3,532.52 41,083.17 26.15%
Biogas 10,140.70 242.21 2,816.86 1.79%
Solar 4,080.09 97.45 1,133.36 0.72%
Renewable Wind 1.42 0.03 0.39 0.00%
Micro/Pico Hydro 435.89 10.41 121.08 0.08%
14,658.11 350.10 4,071.70 2.59%
Total 565,537.01 13,507.62 157,093.61 100.00%
(MoF, 2022; WECS, 2021; NOC 2021; AEPC, 2021; NEA, 2021; DoC, 2021; calculations)
103
Annex X. Sectoral Energy Consumption
Agricultural Sector
2019 2020 2021
Fuelwood - - -
Agricultural Residue - - -
Animal Waste - - -
Kerosene - - -
Petrol 128.35 133.08 136.34
Diesel 8,417.34 8,712.73 8,942.76
ATF - - -
LPG - - -
Furnace Oil - - -
Coal - - -
Electricity 560.06 596.94 729.70
Biogas - - -
Bio-briquette - - -
Solar 7.10 18.89 25.29
Wind - - -
Micro/Pico Hydro - - -
9,112.85 9,461.63 9,834.09
Commercial Sector
2019 2020 2021
Fuelwood 22,455.56 21,638.15 22,964.13
Animal Waste - - -
Kerosene - - -
Petrol 34.98 34.07 35.51
Diesel 36.54 35.53 37.10
ATF - - -
LPG 9,168.73 9,583.92 10,847.60
Furnace Oil - - -
Coal 3,265.90 3,153.46 3,295.35
Electricity 3,452.97 3,417.84 3,799.61
Biogas 40.39 44.97 51.67
Bio-briquette - - -
Solar 2,183.04 2,165.53 2,723.80
Wind - - -
40,638.11 40,073.46 43,754.78
104
Industrial Sector
2019 2020 2021
Fuelwood 19,906.96 18,262.79 19,273.78
Agricultural Residue 10,836.80 10,975.50 11,432.08
Animal Waste - - -
Kerosene 303.16 218.45 278.07
Petrol 240.66 223.16 231.33
Diesel 14,448.78 9,453.95 14,597.05
ATF - - -
LPG 1.71 1.79 2.03
Furnace Oil 1,221.93 373.99 3,399.09
Coal 37,514.18 40,049.61 55,150.22
Electricity 9,755.77 9,193.71 10,163.52
Biogas - - -
Bio-briquette - - -
Solar - - -
Wind - - -
94,229.97 88,752.96 114,527.19
Residential Sector
2019 2020 2021
Fuelwood 322,597.14 326,862.63 335,420.90
Agricultural Residue 7,208.31 7,278.95 7,350.28
Animal Waste 18,840.60 17,877.64 17,967.02
Kerosene 175.55 166.79 175.82
Petrol - - -
Diesel - - -
ATF - - -
LPG 10,390.15 10,860.65 10,899.78
Furnace Oil - - -
Coal - - -
Electricity 9,075.49 9,977.37 11,668.28
Biogas 8,134.60 10,095.74 9,705.28
Bio-briquette - - -
Solar 1,889.96 1,895.68 2,010.59
Wind 1.04 1.42 1.87
Micro/Pico Hydro 325.94 435.89 514.96
378,638.78 385,452.76 395,714.78
105
Transportation Sector
2019 2020 2021
Fuelwood - - -
Animal Waste - - -
Kerosene - - -
Petrol 18,269.69 14,035.01 19,092.85
Diesel 36,140.77 19,917.37 35,280.34
ATF 6,306.28 4,369.79 2,218.29
LPG 0.09 0.10 0.11
Furnace Oil - - -
Coal - - -
Electricity 15.91 9.84 6.98
Biogas - - -
Bio-briquette - - -
Solar - - -
Wind - - -
60,732.75 38,332.11 56,598.58
Construction and Mining Sector

2019 2020 2021
Fuelwood 129.30 83.84 131.55
Animal Waste - - -
Kerosene 411.16 296.27 377.14
Petrol 61.33 48.05 64.83
Diesel 4,561.38 2,984.55 4,608.19
ATF - - -
LPG 44.99 47.03 53.23
Furnace Oil - - -
Coal - - -
Electricity 4.18 4.34 5.29
Biogas - - -
Bio-briquette - - -
Solar - - -
Wind - - -
5,212.34 3,464.09 5,240.22
106
Annex XI. Energy conversion table

to -->
from MJ TCE cub m btu toe boe kWh kwyr kcal TJ Gcal Mtoe Mbtu GWh GWyr PJ
MJ 1 3.41208E-05 0.02684061 947.8672986 2.388E-05 0.0001751 0.277777778 3.171E-05 238.8459 0.000001 0.0002388 2.388E-11 0.0009479 2.778E-07 3.171E-11 1E-09
TCE 29307.6 1 786.633946 27779715.64 0.7 5.131 8141 0.9293379 7000000 0.0293076 7 0.0000007 27.779716 0.008141 9.293E-07 2.931E-05
cubm 37.256973 0.001271239 1 35314.66672 0.0008899 0.0065227 10.34915928 0.0011814 8898.6752 3.7257E-05 0.0088987 8.899E-10 0.0353147 1.035E-05 1.181E-09 3.726E-08
btu 0.001055 3.59975E-08 2.8317E-05 1 2.52E-08 1.847E-07 0.000293056 3.345E-08 0.2519824 1.055E-09 2.52E-07 2.52E-14 0.000001 2.931E-10 3.345E-14 1.055E-12
toe 41868 1.428571429 1123.76278 39685308.06 1 7.33 11630 1.3276256 10000000 0.041868 10 0.000001 39.685308 0.01163 1.328E-06 4.187E-05
boe 5711.869 0.194893783 153.310066 5414093.869 0.1364256 1 1586.630286 0.1811222 1364256.5 0.005711869 1.3642565 1.364E-07 5.4140939 0.0015866 1.811E-07 5.712E-06
kWh 3.6 0.000122835 0.09662621 3412.322275 8.598E-05 0.0006303 1 0.0001142 859.84523 0.0000036 0.0008598 8.598E-11 0.0034123 0.000001 1.142E-10 3.6E-09
kwyr 31536 1.076034885 846.445568 29891943.13 0.7532244 5.521135 8760 1 7532244.2 0.031536 7.5322442 7.532E-07 29.891943 0.00876 0.000001 3.154E-05
kcal 0.0041868 1.42857E-07 0.00011238 3.968530806 0.0000001 7.33E-07 0.001163 1.328E-07 1 4.1868E-09 0.000001 1E-13 3.969E-06 1.163E-09 1.328E-13 4.187E-12
TJ 1000000 34.12084238 26840.6129 947867298.6 23.88459 175.07404 277777.7778 31.709792 238845897 1 238.8459 2.388E-05 947.8673 0.2777778 3.171E-05 0.001
Gcal 4186.8 0.142857143 112.376278 3968530.806 0.1 0.733 1163 0.1327626 1000000 0.0041868 1 0.0000001 3.9685308 0.001163 1.328E-07 4.187E-06
Mtoe 4.187E+10 1428571.429 1123762780 3.96853E+13 1000000 7330000 11630000000 1327625.6 1E+13 41868 10000000 1 39685308 11630 1.3276256 41.868
Mbtu 1055 0.035997489 28.3168466 1000000 0.0251982 0.1847031 293.0555556 0.0334538 251982.42 0.001055 0.2519824 2.52E-08 1 0.0002931 3.345E-08 1.055E-06
GWh 3600000 122.8350326 96626.2064 3412322275 85.984523 630.26655 1000000 114.15525 859845228 3.6 859.84523 8.598E-05 3412.3223 1 0.0001142 0.0036
GWyr 3.154E+10 1076034.885 846445568 2.98919E+13 753224.42 5521135 8760000000 1000000 7.532E+12 31536 7532244.2 0.7532244 29891943 8760 1 31.536
PJ 1E+09 34120.84238 26840612.9 9.47867E+11 23884.59 175074.04 277777777.8 31709.792 2.388E+11 1000 238845.9 0.0238846 947867.3 277.77778 0.0317098 1
MJ Megajoule Gcal gigacalorie

TCE tons of coal equivalent Mtoe million toe
Cub m cubic meter Mbtu milliom bt
Btu British thermal unit GWh gigawatthours
Toe tones of oil equivalent GWyr giiawattyear
Boe barrels of oil equivalent PJ petajoule
kWh kilowatt-hours
kWyr kilowattyears
kcal kilocalorie
TJ terajoule
107

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Government of Nepal

Water and Energy Commission Secretariat

Energy Sector Synopsis Report 2021/2022

Water and Energy Commission Secretariat

Annex I. GDP Structure ..................................................................................................... 88

Figure 4-1 Energy Consumption Categorization .................................................................................. 49

Table 8-5Forest Area and Actual Fuelwood Produced ......................................................................... 76

Figure 1: Proportion of Sustainable Annual Wood Yields in Provinces

Commercial Energy Resources

0 100 200 300 400 500 600 700

Traditional biomass Petroleum products Coal Electricity Renewables

Figure 3: Energy consumption by fuel types in 2019, 2020, and 2021

Figure 3: Energy consumption by sectors in 2021

Agriculture Commercial Industry

Figure 4: Energy consumption by sectors in 2019, 2020, and 2021

1.1 Country Profile

Figure 1-2 GDP growth rate (MoF 2022)

Figure 1-3 GVA structure by sectoral groups

Figure 1-4 GVA growth rates by sectoral groups

Figure 1-5 Province-wise contribution to GDP (CBS, 2022)

Figure 1-6 Provincial mixes of establishments in 2018

Figure 1-7 Share of Establishments by industrial divisions

1.4 Energy and related policies

residential, commercial, transport, industry, and agriculture. It plans to generate 3000MW of

Low Carbon Economic Development Strategy

Second Nationally Determined Contribution

Nepal: Sustainable Development Goals Status and Roadmaps 2016-2030

Nepal Electricity Regulatory Commission Act 2074

Nepal’s Energy Sector Vision 2050 A.D.

Nepal’s 20-Year Renewable Energy Perspective Plan 2000-2020

National Energy Strategy of Nepal, 2013

Nepal's Long-term Strategy (LTS) for Net-zero Emissions, 2021

15th five-year plan (2076/77-2080-81)

Key Plans, Policies, Features

 Clear roles and responsibilities, and institutional setup of Department and

 Appointment of transport inspector.

 Provisions to restrict polluting vehicles restrict the operation of vehicles in

Key Plans, Policies, Features

 Provision to exempt custom duty and tax on non-polluting vehicles

 Formation of National Transport Board to coordinate authorities relating to

 Provision of institutional setup and a Rural Energy Fund

 No royalty or tax for self-dependent industries on electricity and provision

 Ordinance for auditing and reporting of energy intensity of industries

 Provision to build the capacity of the Department to monitor and control

Environment-friendly  Promotion, development, and expansion of environment-friendly and

 Target to achieve more than 20% of vehicle fleets to be environment-friendly

 Development of cycle tracks and charging stations for electric vehicles.

 Establishment of a separate division or section under the MOPIT, or its

Key Plans, Policies, Features

 Establishment of waste processing centers in each municipality

 Promote and develop clean, renewable energy

 Study and development of railway including metro

 Establishment of 7 Vehicle fitness testing centers and old vehicle

 Improve access to renewable energy

1.5 SAARC energy outlook

Figure 2-1 Methodological framework

2.1 Energy supply potential estimation

2.1.1.2 Agricultural Residues

Table 2-1 Residue to Product ratio and Net calorific value

2.1.1.3 Animal Waste