KATHMANDU, DECEMBER 12
Nepal has achieved a remarkable transformation in electrification, moving from just 2% access to electricity fifty years ago to over 95% of households connected today. According to the Asian Development Bank (ADB), this progress has driven significant social, economic, and technological development across the country.
ADB has played a pivotal role in this energy transition since its first project in 1972, which funded a transmission line. Over the years, the bank has supported nearly half of Nepal's transmission lines, over one-third of its 33-kV substations, and renewable energy projects such as mini-hydro, wind, and solar power.
Landmark Hydroelectric Projects
The Kali Gandaki "A" Hydroelectric Project in western Nepal, commissioned with ADB's support in 1996 and contributed by Japan Bank for International Cooperation, is the country's first hydropower station exceeding 100 MW. Contributing 6.6% to Nepal's total installed capacity in FY2022 and around 10% until FY2021, the project underscores Nepal's vast hydropower potential, with over 83 GW of technical potential, 42 GW of which is economically viable.
To enhance the power evacuation system, the 220-kV Kushma Substation in Parbat district was built under the South Asia Subregional Economic Cooperation (SASEC) Power System Expansion Project, enabling efficient utilization of the Kali Gandaki River Basin's hydropower.
Transmission and Agricultural Benefits
ADB's support extends to modernizing Nepal's transmission infrastructure. The 132-kV Butwal-Nepalgunj (Kohalpur) transmission line, built in 1981, strengthened the power supply in western Nepal. Additionally, the 132-kV Pahalmanpur Substation in Kailali, constructed with Norwegian grants and ADB's assistance, provides electricity critical for agriculture. Farmers like Hira Lal Chaudhary in Ghodaghodi Municipality report significant increases in income using electric water pumps for irrigation.
Reaching Remote Communities
ADB-backed projects have brought clean energy to Nepal's remote areas. In Rolpa, the village of Thabang is powered by a 150-kilowatt-peak solar mini-grid, enabling sustainable energy access. Similarly, a 75-kilowatt-peak solar mini-grid supports ICT education at Shree Rastriya Secondary School in Solta, an isolated village in far-west Nepal.
Empowering Women and Industry
ADB has also emphasized social inclusion and economic empowerment. Under an ADB-supported program, Gyan Kumari Shrestha of Kavrepalanchok revived her poultry business after receiving training and support, now managing a thriving farm with over 1,300 chickens.
In the industrial sector, energy-intensive factories, such as spinning mills in Birgunj, benefit from reliable electricity supplied by the Parwanipur Substation, reinforced under an ADB energy access project.
Climate Change and Sustainability
ADB's ongoing projects, such as the Tanahun Hydropower Project, represent vital steps in Nepal's energy transition. The storage-type project offers more reliable and predictable electricity, addressing Nepal's urgent climate change challenges by controlling floods and mitigating flow variability.
According to ADB, the bank remains committed to supporting Nepal's energy sector transformation by promoting clean energy, climate adaptation, and sustainable business models to attract diverse funding sources, including private sector financing.
