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  Rising Power Demand Highlights Growing Role of Private Producers in Nepal

Today’s system report from the Nepal Electricity Authority shows that the country’s electricity demand is continuously increasing. Today, the total energy demand across the country reached 38,623 megawatt-hours (38,623,000 kilowatt-hours, or 38.623 million units). According to the Authority’s data, electricity demand during the evening peak rose to 2,238 megawatts (MW).

Despite significant growth in electricity generation, today’s situation clearly shows that Nepal still remains heavily dependent on imported electricity. The data indicate that nearly one-third of the total demand had to be managed through imports from India.

On this day, the Nepal Electricity Authority supplied 5,581 megawatt-hours (5,581,000 kilowatt-hours, or 5.581 million units) of energy from its own system. Similarly, an additional 5,600 megawatt-hours (5,600,000 kilowatt-hours, or 5.6 million units) were added to the grid from the Authority’s subsidiary companies.

However, the largest contribution has come from private sector Independent Power Producers (IPPs). Today, IPPs supplied a total of 16,432 megawatt-hours (16,432,000 kilowatt-hours, or 16.432 million units) of energy.

This shows that Nepal’s electricity structure is gradually becoming more dependent on private generation. Energy sector experts say that in recent years, as private hydropower projects have rapidly come into operation, IPPs have increasingly become the backbone of the power system.

Despite such substantial domestic production, Nepal still imported 10,711 megawatt-hours (10,711,000 kilowatt-hours, or 10.711 million units) of electricity from India today. Nearly 28 percent of the total demand was met through imports.

Particularly during the summer season, peak demand is created as industrial activity and urban consumption rise. In such times, the lack of sufficient reservoir-based (storage) projects and a strong transmission system forces Nepal to rely on electricity supply from neighboring countries.

Another important aspect of today’s system was 300 megawatt-hours (300,000 kilowatt-hours, or 0.3 million units) of energy interruption. Although this is a small share compared to total demand, such interruptions during peak hours can directly impact industries, businesses, and consumers.

Overall, today’s demand management shows that the role of the private sector is becoming decisive, while import dependency has yet to be eliminated. The data once again highlight the need not only to increase production, but also to expand transmission infrastructure, construct reservoir-based projects, and implement effective peak-load management strategies.

At a time when Nepal is debating the prospects and opportunities for electricity export, the fact that the daily system still carries a significant share of imports makes it clear that structural reforms are essential to achieve energy self-reliance.

Jalasarokar

[ 19 February 2026 / nepalenergyforum.com ]   
 

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