Nepal's Electric Revolution: Government Unveils Bold Roadmap to Replace LPG with Power and Charge Up EVs

Nepal is officially stepping into its electrical era, with the government launching an aggressive national strategy to transform how citizens consume power. Energy Minister Biraj Bhakta Shrestha confirmed that the state is intensifying policy and technical preparations to drastically increase domestic electricity usage, aiming to replace liquefied petroleum gas (LPG) for cooking and accelerate the adoption of electric vehicles (EVs) across the country.

A 10-Year Vision for Energy Dominance

The centerpiece of this transformation is the newly unveiled Energy Consumption Growth and Export Strategy, 2083, a long-term roadmap designed to make the energy sector the primary driver of Nepal's economic transformation. The government has set a staggering target to increase per capita electricity consumption from the current 450 kilowatt-hours (kWh) to 1,500 kWh by 2035.

To meet this demand, Nepal plans to skyrocket its total installed generation capacity from 4,242 megawatts (MW) to 28,500 MW within the same decade, while simultaneously boosting domestic demand to approximately 13,500 MW. This massive expansion is not just for local use; the roadmap also aims to export up to 15,000 MW to India and Bangladesh, positioning Nepal as a key player in regional energy markets.

Infrastructure Upgrades and New Fiscal Incentives

The current fiscal year's budget prioritizes the expansion and upgrading of transmission and distribution infrastructure, a critical step to handle the anticipated surge in power usage. Prime Minister Balendra Shah reinforced this commitment by announcing that revenue from a newly imposed 5% VAT on electricity (applied to consumption exceeding 50 units) will be directly invested in replacing transformers, strengthening transmission lines, and upgrading substations nationwide.

To further encourage usage, the government has introduced consumer-friendly measures, including a scheme to provide 50 units of free electricity in summer and 30 units in winter for households. Additionally, the Nepal Electricity Authority (NEA) has proposed a draft tariff rate that reduces costs as consumption increases, flipping the traditional model to reward high-volume users with rates as low as Rs 3 per unit for consumption over 400 units.

From LPG Stoves to Electric Wheels

The strategy identifies specific behavioral shifts as key priorities. The government aims to gradually displace LPG by promoting electric cooking appliances through policy incentives. Simultaneously, there is a focused push to promote EVs in both public and private sectors, supported by the accelerated construction of charging stations across the nation.

Energy Minister Shrestha emphasized that Nepal must not focus solely on generating more power but must also ensure efficient use and increased demand to prevent waste and grid instability. By modernizing the distribution system with smart grids and expanding reservoir-based hydropower projects, the government aims to create a resilient system capable of supporting this new electrical lifestyle.