How much electricity does Nepal produce?

Nepal’s electricity production capacity has reached 3,157 MW, with an additional 2,300 MW generated in the past eight years. However, the country’s peak electricity demand is only 2,650 MW. According to the NEA, energy consumption has tripled in the past few years following the end of power cuts and the resumption of regular electricity supply.

Why does Nepal need external market to sell excess power?

“Nepal needs the external market to sell excess power in the short-term as domestic demand has not been growing to consume all upcoming power,” Guragain said. With about 4000MW of power projects scheduled to be connected to the national grid in the next 3-4 years, Nepal aims to export electricity.

Does Nepal have a surplus energy problem?

Despite aspirations to maximize electricity production, Nepal has been grappling with the challenge of properly utilizing its surplus energy. Aside from some efforts to strengthen transmission lines and a few exports to India, no significant measures have been implemented to address this ongoing problem.

How India is investing in Nepal's hydropower sector?

India’s substantial investment in Nepal’s hydropower sector began with the 900 MW Arun III hydropower project. India has also signed an agreement with the Investment Board of Nepal for the construction of the 750 MW West Seti and 450 MW Seti River-6 projects. Opportunity to Capitalize Surplus Electricity

How does waste electricity affect Nepal's economy?

Ganesh Karki, president of the Independent Power Producers’ Association of Nepal (IPPAN), said that losses incurred by hydropower plants due to wasted electricity have a chain effect on larger sections of the economy.

How did Nepal's energy crisis affect the economy?

Nepalese faced power outages lasting up to 18 hours daily. The World Bank estimated the total economic impact of the energy crisis to be around seven percent of the gross domestic product (GDP), amounting to US $11 billion during that period.