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Emphasis has been placed on encouraging the use of electric household appliances and reducing LPG consumption by improving transformer capacity.

The Ministry of Energy, Water Resources and Irrigation has made public the draft of the “Energy Consumption Increase and Export Strategy, 2026/27”. Issuing a notice on April 24, 2026 , the ministry has requested stakeholders to submit their feedback and suggestions on the draft within three days.

The ministry stated that after collecting feedback and suggestions, necessary revisions will be incorporated before finalizing the strategy. It will be implemented after approval by the Cabinet. In line with point 74 (a) and (g) of the 100-point governance reform agenda approved by the Cabinet on March 27, 2026, Energy Minister Biraj Bhakta Shrestha had formed a high-level study committee to address energy consumption and export strategy. The committee, coordinated by Joint Secretary Sandip Kumar Dev, submitted the draft strategy to the minister on April 23, 2026.

The strategy emphasizes significantly increasing domestic electricity consumption and presents a long-term roadmap to promote export of surplus electricity. It prioritizes achieving 100 percent household electrification and improving transmission and distribution systems. The draft highlights the need to encourage the use of electric household appliances, upgrade meters and transformers, and gradually reduce reliance on LPG gas. It notes that per capita energy consumption, currently around 450 kWh, could be increased to 1,500 kWh within the next 10 years.

The strategy sets a target of generating 24,500 MW of electricity over the next decade. By fiscal year 2035, electricity production of 24,500 MW is targeted from 18 projects. This includes a goal of producing over 1,000 MW from solar energy promoted by the Nepal Electricity Authority, with a completion deadline of 2028/29, Projects promoted by the Independent Power Producers’ Association, Nepal (IPPAN) aim to generate around 14,000 MW by 2035, while projects developed by government companies, the authority, and its subsidiaries target 3,500 MW.

The draft also sets timelines for completing various projects promoted by the government and the authority. The 40 MW Raghuganga Hydropower Project is targeted for completion within the next 100 days. The 140 MW Tanahun Hydropower Project is scheduled for completion by FY 2028/29. The 42 MW Upper Modi-A and 18.2 MW Upper Modi projects are set for completion by FY 2029/30. while the 37 MW Upper Trishuli 3B is targeted for FY 2027/28. Large projects including the 1,200 MW Budhigandaki Reservoir Project, 670 MW Dudhkoshi Reservoir Project, 1,061 MW Upper Arun, and 417 MW Nalgad Hydropower Project are targeted for completion by 2034/35. The 490 MW Arun-4 Hydropower Project is set for completion by 2033/34.

On the production side, the strategy aims to increase the share of reservoir and semi-reservoir hydropower projects to address seasonal imbalances between dry and wet periods. It also proposes expanding the nationwide transmission system and boosting electricity exports to regional markets through cross-border transmission lines. The strategy focuses on exporting electricity during peak evening demand to maximize economic returns, with a target of exporting 15,000 MW within the next decade.

To increase electricity consumption, the government plans to prioritize electric vehicles in public transportation and expand charging station networks. It also proposes replacing coal- and petroleum-based industrial boilers with electric systems and introducing electric buses and trolley buses in major cities.

In the household sector, the draft proposes removing subsidies on LPG gas and providing subsidies for electric stoves to increase electricity usage. In agriculture, it suggests offering tariff concessions and converting irrigation systems completely to electric pumps.

The strategy identifies potential risks and proposes clear mitigation measures. It prioritizes expanding private sector participation in electricity trade and improving the institutional efficiency of the Nepal Electricity Authority through structural reforms. It also sets timelines, including implementing provisions for private sector participation in electricity trade within one year, restructuring the Nepal Electricity Authority within two years, and making decisions on power purchase agreements (PPAs) and licenses within 180 days.

According to Mohan Dangi, Senior Vice President of IPPAN, the draft prioritizes involving the private sector in electricity trade and transmission lines. He stressed that there should be no delay in granting licenses for electricity trade and transmission development. He also noted that while increasing domestic consumption benefits the country, only surplus electricity should be exported. Although he described the draft as good, he pointed out that Nepal has historically struggled with implementation.

Earlier, the Ministry had released the “Energy Development Roadmap and Action Plan 2023/24”, targeting 28,500 MW of electricity generation by 2035. Dangi expressed hope that with a near two-thirds majority government capable of reforming policies, laws, and regulations, effective implementation will now be possible.

Kantipur