The government plans to increase the national grid capacity to 4500 MW in the next fiscal year. Presenting the budget for the Fiscal Year 2081/82 BS (2024/25) on Tuesday, Finance Minister Barsha Man Pun announced that 900 MW of electricity will be added to the national grid. According to the finance minister, per capita electricity consumption is expected to rise from 380 kWh to 450 kWh.

Nepal aims to start exporting electricity to Bangladesh, alongside current exports to India. The government has prioritized reservoir-based projects, including the 1200 MW Budhigandaki Hydroelectricity Project, and will initiate the development of 625 MW Dudhkoshi, 417 MW Nalgadh, and 280 MW Naumure projects.

Additionally, projects like the 77.5 MW Ghunsha Khola and 70.3 MW Simbua Khola projects will secure investments from Nepalis abroad. Under the People's Hydroelectricity Programme, construction will begin on the 106 MW Jagadulla, 99.9 MW Tamakoshi V, and 210 MW Chainpur Seti projects.

The government will set the investment framework for Sunkoshi III and study the feasibility of the 10,800 MW Karnali Chisapani project. Efforts will also focus on promoting clean energy and production of green hydrogen, completing major transmission lines, and starting new corridor projects. The government has allocated a budget of Rs 50.74 billion for the energy sector.