Nepal Electricity Authority (NEA) and Energy Sector

Category

Energy & Hydropower

Key Facts

Nepal Electricity Authority (NEA)

The Nepal Electricity Authority (NEA) is the state-owned utility responsible for the generation, transmission, and distribution of electricity in Nepal.

Key Facts

Establishment: Founded on August 16, 1985 (Bhadra 1, 2042 BS) under the Nepal Electricity Authority Act, 1984, by merging the Department of Electricity, Eastern Electricity Corporation, and Nepal Electricity Corporation.
Headquarters: Kathmandu, Nepal.
End of Load Shedding: Declared load-shedding free for residential consumers in 2016 (starting from Kathmandu on Laxmi Puja) and completely for industrial sectors in May 2018, resolving chronic power outages that peaked at up to $18$ hours per day in 2013.
Electricity Trade: Nepal transitioned from a net importer to a seasonal exporter, exporting surplus wet-season hydroelectricity to India through the cross-border transmission lines.

Energy Mix & Capacity

Dominance of Hydropower: Over $98%$ of Nepal's electricity generation comes from run-of-river (RoR) and pondage hydropower plants.
Alternative Energy: Solar energy and biomass are expanding to diversify the grid.

Electrification and Targets

Electrification Rate: Reached approximately $95% - 98%$ of the population by 2023/2024 (up from only $5%$ in 1990).
Export and Production Targets: Nepal aims to generate $15,000\text{ MW}$ by 2035, with a bilateral agreement signed in early 2024 to export $10,000\text{ MW}$ of electricity to India over $10$ years.