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Nepal Targets 5,335 MW Installed Electricity Capacity in the Next Fiscal Year

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The Government of Nepal has set an ambitious target to increase the country’s total installed electricity generation capacity to 5,335 megawatts within the upcoming fiscal year. According to the Annual Development Program published by the Ministry of Energy, Water Resources and Irrigation, an additional 1,040 MW of hydropower capacity is expected to be added during the year.

To achieve this goal, the government plans to accelerate the completion of hydropower projects that are currently under construction or in their final stages. Authorities have also pledged to facilitate privately developed projects to ensure timely completion and increase overall energy production capacity.

Expansion of electricity transmission infrastructure has also been prioritized. The annual plan aims to increase 66 kV transmission lines from 7,048 circuit kilometers to 7,808 circuit kilometers, while 33 kV transmission lines are targeted to expand from 8,325 circuit kilometers to 8,429 circuit kilometers. The government also plans to complete 12 transmission line projects and move forward with the transmission line project passing through central Kathmandu Valley.

In the next fiscal year, Nepal aims to raise per capita electricity consumption to 511 kilowatt-hours and reduce electricity leakage to 12.03%. The plan also includes adding 43 MW from small and micro-hydropower projects and 99 MW from solar energy.

Beyond the energy sector, the government has targeted expansion of irrigation facilities to an additional 15,776 hectares of land. It also plans to construct 70 kilometers of embankments along major and medium-sized rivers and reclaim 210 hectares of land.

The ministry stated that hydropower development is expected to support not only domestic energy demand but also regional economic growth by contributing to industrialization, flood control, environmental protection, employment generation, and long-term economic development.

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