The country’s energy consumption has surged over the past year, seeing an increase of 8.5 million megawatt hours.

This rise is primarily fueled by household consumption and industrial demand, reflecting growth in the energy sector, particularly due to the ongoing development of hydropower projects. Along with exporting surplus electricity, domestic consumption has expanded significantly, with an increase of 861,000 megawatt hours in the fiscal year (FY) 2023/24 compared to FY 2022/23.

The Nepal Electricity Authority (NEA) reported a rise in both customer numbers and electricity consumption. In the fiscal year 2080/81, as much as 10.227 million megawatt hours of electricity was used, generating a revenue of Rs 99.63 billion. In contrast, the previous year saw the consumption of 9.365 million megawatt hours, with revenue reaching Rs 90.46 billion.

According to NEA data, 95.54 percent of its customers are from the domestic sector, followed by industrial (1.26 percent), commercial (0.75 percent), non-commercial (0.71 percent), and others (5.73 percent). The domestic sector accounted for 42.12 percent of total electricity usage, while the industry sector consumed 36.12 percent. Commercial users consumed 8.08 percent, with the non-commercial sector accounting for 3.15 percent, and 10.51 percent used by other sectors

In FY 2022/23, as much as 98 percent of the country was electrified, which increased to 99 percent in FY 2023/24.

Key electricity consumption sectors

Households remain the largest electricity consumers, using 4.308 million megawatt hours in 2023/24, bringing in revenue of Rs 38.41 billion. In FY 2022/23, consumption in this sector was slightly lower at 3.896 million megawatt hours, generating Rs 34.51 billion in revenue.

The industry sector also showed significant demand, using 3.694 million megawatt hours in FY 2023/24 and contributing Rs 36.64 billion in revenue. This marked an increase from 3.586 million megawatt hours in FY 2022/23, which generated Rs 34.77 billion in revenue.

The commercial sector saw the consumption of 825,885 megawatt hours in 2023/24, resulting in Rs 11.59 billion in revenue, up from 736,663 megawatt hours in the previous year, which earned Rs 10.34 billion.

The non-commercial sector also saw growth, using 322,636 megawatt hours and generating Rs 4.54 billion in FY 2023/24, up from 275,976 megawatt hours and Rs 3.89 billion in FY 2022/23.

In the irrigation sector, 212,931 megawatt hours were consumed in FY 2023/24, producing Rs 532.15 million in revenue, a rise from 143,888 megawatt hours and Rs 350.74 million in the previous year.

Water supply services consumed 192,309 megawatt hours in FY 2023/24, generating Rs 1.29 billion in revenue, compared to 171,184 megawatt hours and Rs 934.69 million in FY 2022/23.

Source : Republica