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Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has expressed concern over Nepal's low per capita electricity consumption, saying the country must now focus on increasing domestic power use despite achieving surplus electricity generation during the monsoon.

Speaking at the Power Nepal Conclave 2026, organized by Nepal Republic Media on Wednesday, Shrestha acknowledged that inadequate transmission and distribution infrastructure continues to affect reliable electricity supply even as power generation has increased significantly.

Recalling that Nepal faced severe load shedding and an energy crisis just a decade ago, the minister said the country's installed hydropower capacity has grown from less than 1,000 MW to more than 3,000 MW over the past 10 years. He credited the private sector, government agencies and engineers for the achievement.

Despite the increase in generation, he said Nepal's annual per capita electricity consumption remains only around 400 to 450 kilowatt-hours, far below regional standards.

"India's per capita electricity consumption is around 1,500 kilowatt-hours and Thailand's is about 2,500 kilowatt-hours. It is unfortunate that Nepal still ranks among the lowest," he said, adding that the government aims to raise annual per capita electricity consumption to 1,500 kilowatt-hours by 2030.

Shrestha stressed that electricity demand cannot be increased by household consumption alone, calling for greater investment in energy-intensive sectors such as heavy industries, data centers, commercial establishments and tourism infrastructure. He said the government is preparing new plans to promote productive domestic consumption of electricity and strengthen the country's self-reliant economy.

The minister also acknowledged persistent complaints over unreliable electricity supply in western Nepal.

"We talk about energy surplus, yet some areas continue to face unscheduled power cuts and frequent tripping," he said. "We cannot claim real progress as long as industries still have to rely on diesel generators as backup."

He further underlined the need for stronger financial discipline and policy reforms at the Nepal Electricity Authority, including innovation in power purchase agreement models.

Shrestha said the government will continue strengthening the domestic electricity market while strategically expanding cross-border electricity trade with India and Bangladesh. He also expressed confidence that Nepal would eventually be able to export electricity to East Asian countries such as Myanmar and Thailand.