Electrified Nepal – Markets for electricity within Nepal

December 16, 2019 | DWAIPAYAN REGMI

With a rapid rise in the oversupply of electricity, Nepal is now seeking the market for its sale. So, India and Bangladesh seem to be the primary target of the Nepal Electricity Authority (NEA) right now. After all, Electricity happens to be such a resource – which if left unused, cannot be stored or saved for the future. Saying this, it is also important to understand that there still lies enough rooms for the market within Nepal itself.

Electricity is used simply forsake lighting and for the use of basic electrical appliances in the Nepalese context as of now. However, the market is far beyond these and there certainly lies enough spaces for other areas that currently seem to be ignored.

Industrial Regions

A large number of industries still have their backup as generators. It is high time that these generators be disposed of with assurance of regular and required amount of electricity. There are still bigger organizations that have been into trouble of power outages and power shortages – sometimes because of less power ampere and sometimes just because of fluctuations around. This could be the biggest market where NEA can help them increase their capacity and let them operate smoothly.


From firewoods, Nepalese cooking trends shifted to the kerosene-based stove. This then got into LPG gas and then stopped. Nepal is still dependent upon LPG gas imported from India. These gases are available across the country and a large number of families are dependent on these gases for cooking. Electricity could be the next stop.

This electricity can be ensured within every kitchen, and a large proportion of LPG gas use can be minimized, reducing import as a whole. But, what people here actually fear is the initial cost incurred. The subsidy could be the ultimate solution. Inductions don’t have a longer life span, people would require sustainable means.


We are highly dependent upon diesel and petrol-based transportation. Electricity could be the next huge space. Just that, the uphills would require more power, and there aren’t any recharge stations in highways – and hence they can’t be immediately replaced. But, if designed as per the geographical region of Nepal, these electric vehicles could be next space where NEA can expand up to its market. Although there seems to be some subsidy as of now, they aren’t as strong and effective that they had to be. There seem some loopholes – we’d still prefer diesel vehicles than electric.


Nepalese mass had always been away from these elements – AC, Cooler or Heater. The only thing that Nepalese mass used was a fan. With less cost, this turned out to be habit across summer regions. People still get scared In the purchase of these appliances. Permitting tax waiving at these appliances – refrigerator, dishwasher, AC, Heater can let people purchase it expanding the market within the country.

Unreached regions

This could be surprising to know that there still lies a region where NEA has not been able to operate through its central line. Electricity poles are being installed in several regions, and the plans of operation are several spaces that are yet to be implemented. NEA can also expand this region of the market for widening supply.


However, with an increase in supply, the price had to fall as per economic theory. But, the case lies under probability here. Lowering down prices can promote more usages of electricity. This price reduction can increase power consumption too. There lies confusion – induction is cheaper or LPG gas. The answer can only be ensured through price reduction which could be the next important strategy to workaround.


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