To tackle this, the government has earmarked Rs 80 billion for the upcoming fiscal year (2083/84 BS) to overhaul and expand the country's aging electricity infrastructure.

Addressing an interaction program organized by the Association of Economic Journalists-Nepal (NAFIJ), Energy Minister Biraj Bhakta Shrestha made it clear that while yesterday's battle was about producing enough electricity, today's battle is about transmitting and distributing it.

Key Pillars of the Power Upgrade Strategy

The government's plan centers on shifting focus from generation to transmission, boosting domestic demand, and cementing cross-border trade.

• Transmission & Distribution Overhaul:

  • The Ministry is fast-tracking 12 strategic transmission lines to be completed within the next fiscal year.

  • Nepal’s transmission network (66 kV and above) will hit 7,048 circuit kilometers by the end of this fiscal year, with an additional 800 circuit kilometers slated for next year.

  • Alongside state funding, the Nepal Electricity Authority (NEA) is injecting its own internal resources to stabilize local distribution grids and minimize localized blackouts.

• Skyrocketing Domestic Consumption Targets:

  • The government has launched the Energy Consumption Enhancement and Export Strategy-2083 to drive electric power into industries, transport, agriculture, and service sectors.

  • While current per capita consumption sits at 460 kWh, the government is targeting a massive jump to 1,500 kWh over the next decade.

• Powering Up Cross-Border Exports:

  • With domestic needs prioritized, surplus energy is headed for regional markets.

  • The recent Nepal-India Energy Secretary-level Joint Directive Committee (JSC) meeting in Pokhara has paved the way for Nepal's long-term goal of exporting 10,000 MW of electricity to India, helping slash the trade deficit and reel in foreign currency.

Opening the Gates to Private Players

In a major policy shift, the government is introducing reforms to liberalize the power sector:

"The government is preparing legal frameworks that will allow the private sector to trade electricity in both national and international markets, construct their own transmission lines, and utilize national grids via a 'wheeling charge' system."

— Biraj Bhakta Shrestha, Minister for Energy, Water Resources and Irrigation

These reforms aim to slash bureaucratic red tape, making Nepal’s energy market transparent, competitive, and highly attractive to private and foreign investors alike.