Download report
All markets

Nepal

With a power score of 2.03, Nepal ranks number 25 among emerging markets and number 48 in the global power ranking.

  • Emerging markets
  • Asia-Pacific

2.03 / 5

Power score


+23 places

Global power rank change


2021
2022
2023
56
71
48

Overview

Nepal has a power score of 2.03, which puts it at rank 48 in the global power ranking, and rank 25 in the emerging markets power ranking. In comparison to 2021, Nepal has improved in the power rankings by 8 places, from rank 56, to rank 48.

At 2.03, the power score of Nepal is better than the regional average of 1.88 in the Asia-Pacific region.

Regional power score comparison

0
1
2
3
4
5
Nepal

Power

Power policy

Nepal implements policies in 5/6 power policy categories tracked by Climatescope, including Renewable energy target, Renewable energy auction, Feed-in Tariff, Net Metering, Import tax incentives, VAT incentives.

Power policies

Renewable energy target
Renewable energy auction
Feed-in Tariff
Net Metering
Import tax incentives
VAT incentives

Power prices and costs

The average electricity price in Nepal has dropped from 81.99 USD/MWh in 2021 to 69.14 USD/MWh in 2022. Since 2017, the average electricity price in Nepal has fluctuated between 69.14 USD/MWh (2022) and 100.1 USD/MWh (2017).

Loading...

Power market

The top amount of capacity installed in Nepal in 2022 was in Small Hydro at 50.69%, up from 43.34% in 2021.

Installed capacity (in MW)

2014201620182020202205001K1.5K2K MW

Electricity generation (in GWh)

2014201620182020202202K4K6K8K10K GWh

The largest electricity generating technology in Nepal in 2022 was Small Hydro, generating some 72.81% of electricity, up from 66.27% in 2021.

Loading...

Investment in clean energy in Nepal was around $7.5 million in 2020, a decrease of 79.73% from 2018 ($37 million). Between 2017 and 2020, the highest investment in clean energy was in 2017 at $59 million, while the lowest was in 2020 with $7.5 million.

Utility privatisation

Which segments of the power sector are open to private participation?

Generation: Yes
Transmission: No
Retail: No

Type

Question

Availability

Wholesale power market

Does the country have a wholesale power market?

No

Doing business and barriers

Type

Question

Availability

Currency of PPAs

Are other PPAs (eg. corporate PPAs) signed in or indexed to U.S. Dollars or Euro?

No

Type

Question

Availability

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

No

Type

Question

Availability

Fossil fuel price distortions - Subsidies

Does the government keep the wholesale price of electricity from fossil fuels artificially low through subsidies?

Yes

Type

Question

Availability

Fossil fuel price distortions - Taxes and carbon prices

Does the government significantly increase the wholesale price of electricity from fossil fuel through targeted taxes and/or carbon prices?

No

Transport

Transport policy

Nepal implements policies in 2/9 transport policy categories tracked by Climatescope, including Clean transport target, National ICE phase-out, EV purchase grant/loan incentive, EV VAT reduction/exemption, EV import tax reduction/exemption, EV income tax reduction/exemption, EV recurring tax reduction/exemption, EV charging infrastructure target, E-bus target.

Transport policies

Clean transport target
National ICE phase-out
EV purchase grant/loan incentive
EV VAT reduction/exemption
EV import tax reduction/exemption
EV income tax reduction/exemption
EV recurring tax reduction/exemption
EV charging infrastructure target
E-bus target

Type

Question

Availability

Fuel economy standards

Does the country have a fuel economy standard in place?

No
Climatescope 2023 print report cover

Power Transition Factbook

This marks the 12th anniversary of Climatescope, BNEF’s annual assessment of energy transition opportunities. In recent years, the project has been expanded to include activity not just in clean power, but also in the decarbonization of transportation and buildings.

Download report

Stay up to date

Subscribe to our mailing list to get the latest news about Climatescope directly in your inbox.


Results
Sectors
PowerTransportBuildings
About
Contact

© 2024 Climatescope. View license and Privacy policy