In 2022, Nepal’s economy was ranked 96th in gross domestic product (GDP) in the world. The country’s economy is based on tourism and the export of soybean oil, palm oil, synthetic filters yarn, knotted carpets, nutmeg, mace, and cardamon.
In 2016, Nepal signed the Paris Climate Agreement, committing to reduce fossil fuel dependency by 50% by 2050.
Power Generation Capabilities
In 2021, 89.9% of the people in Nepal had access to electricity. In 2021, the state-owned Nepal Electricity Authority (NEA) used only renewable energy (100 %) to generate electricity in the nation. Hydropower is the dominant type of renewable energy used to generate electricity in Nepal.
In November 2021, Nepal began exporting electricity from hydropower plants to India. The Nepal Electricity Authority forecasts that green energy exports to India will generate over U.S. $1.9 Billion in revenue for the nation.
Recent renewable energy projects in Nepal including the following:
- 440 MW Hydropower Project – United States company, SC Power Company is continuing work on the Tila-1 hydropower project in the Karnali province, approximately 250 miles west-northwest of the nation’s capital, Kathmandu.
- 297 MW Hydropower Project – United States company, SC Power Company is continuing work on the Tila-2 hydropower project in the Karnali province, approximately 250 miles west-northwest of Kathmandu.
- 140 MW Hydropower Project – State-owned Butwal Power Company is continuing work on the Lower Manang Marshyangdi hydropower project in Manang district, approximately 80 miles northwest of Kathmandu. The project is forecast to be commissioned in 2026.
Nepal imports all the nation’s refined petroleum for transportation and heating. In 2021, the nation imported U.S. $1.5 Billion of refined petroleum.
Nepal has significant undeveloped renewable energy resources, including hydropower, solar, wind, and biomass. The nation is actively developing new renewable energy projects to increase electricity exports to India, while continuing to reduce fossil fuel emissions from vehicles and heating units in Nepal. Nepal is now a green energy exporting nation in Asia.
Website – “Our Energy Conundrum”
Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio, podcast, and television stations from New York City to Los Angeles on numerous energy related topics.
 Our World In Data, Nepal: Energy Country Profile by Hanna Ritchie and Max Roser