Overview

Nepal’s energy demand, at more than 1,400 MW, exceeds the country’s power supply.  During the dry winter months, energy production in Nepal’s run-of-the-river hydropower projects can fall by more than two-thirds, leaving Nepal reliant on electricity imports from India.  Nepal’s transmission infrastructure remains limited to urban areas, leaving many rural communities without consistent supplies of electricity.  Furthermore, frequent petroleum shortages and the high cost of running diesel generators have prompted some businesses, wealthy urban households, and rural communities to turn to solar energy.

Following the April 2015 earthquake, the Prime Minister’s Office, National Planning Commission, Urban Development Ministry, and other government agencies announced plans to introduce solar power facilities to rural areas as a more reliable and cost-effective source of power.

Renewable Energy Equipment (U. S. $ thousands)

Note:  Total market size is a best estimate, derived by subtracting exports from imports, given local production figures are unknown.

Total Imports:  Trade and Export Promotion Center, Nepal

Imports from U.S.:  Trade and Export Promotion Center, Nepal

Leading Sub-Sectors

• Solar panels
• Inverters
• Batteries
• Solar water heaters

Opportunities

Prospects in renewable energy equipment sales have so far been limited to individual households, through sales of equipment to one of the eighty solar equipment supply companies in Nepal.  However, opportunities to introduce enterprise solar systems to businesses and factories holds tremendous potential.

Resources

Ministry of Energy, Water Resources and Irrigation

Alternative Energy Promotion Center (https://moewri.gov.np/)