Fifty years ago, Nepal was virtually in darkness. Most households relied on kerosene wick lamps, and industrial activities were limited. Half a century later, Nepal has undergone a remarkable transformation.

The substantial rise in electrification has significantly improved the lives of Nepalis, driving economic, social, and technological progress across the nation.

ADB has been a key partner in Nepal’s clean energy journey since 1972, supporting hydropower, transmission lines, substations, and off-grid solutions like solar and wind-solar hybrids, bringing power to remote areas and transforming lives across the country.

ADB will continue to support the Government of Nepal and partner with other development partners to further strengthen the energy sector and support Nepal's energy transition by promoting clean energy, climate adaptation, and a sustainable business model that attracts diverse investments, including private sector financing.

Transcript

Powering Nepal: 5 Decades of ADB-Nepal Partnership in the Energy Sector

Nepal

Fifty years ago, Nepal was virtually living in darkness.

Nepal's electrification rate was about 2%.

Half a century later, Nepal has undergone a remarkable transformation. Now, 98% of households have access to electricity.

The Asian Development Bank (ADB) has played a crucial role in advancing Nepal's clean energy development.

The partnership between ADB and Nepal began in 1972 with funding for a transmission line project.

Since then, in collaboration with other development partners, ADB has supported nearly 10% of the country's hydroelectric power generation, almost half of Nepal's transmission lines and over one-third of its distribution lines.

(Charts)

ADB partnered with the government of Nepal to build one of its largest hydropower projects. The 144-megawatt Kali Gandaki-A Hydropower Project was built in the early 2000s to address severe power shortages in the country.

Yuty Sherpa, Entrepreneur,Lukla

Access to electricity has made it easier to do household chores, boil water. Children can study in proper light.

Bishnu P Neupane, President, Siddhartha Chamber of Commerce & Industry, Rupandehi

We used to face up to 18 hours of power cuts every day, but that's all in the past. With a reliable supply of electricity, the production capacity of our industry has increased, creating more jobs.

Arnaud Cauchois, Country Director, Asian Development Bank - Nepal

ADB’s ongoing projects, such as the Tanahun Hydro Power 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.

ADB is really proud of its long term partnership with Nepal in developing its hydropower potential together with other development partners particularly the government of Norway and the progress so far has been outstanding with Nepal achieving 98% access to energy and being able to export energy surplus during the wet season.

Kulman Ghising, Managing Director, Nepal Electricity Authority

In the past, Nepal used to import electricity, but now it exports surplus power. The foreign currency earnings from this trade make a significant contribution to the nation’s economy.

ADB has supported Nepal's efforts to develop alternative renewable energy sources, such as mini-hydro, wind, and solar power, particularly in remote and rural areas.

Micro, small, and medium enterprises, which make up over 90% of all businesses in Nepal, are witnessing enhanced productivity and increased income, thanks to the stable electricity supply.

Spanning over five decades, the partnership between ADB and Nepal has steered the country toward low carbon development, improved energy security, increased private sector involvement in power generation, and spurred economic growth.

Arnaud Cauchois, Country Director, Asian Development Bank - Nepal

ADB will continue to work hand in hand with Nepal to develop further its hydropower potential, improve reliability of the energy supply and expand electric power demand in the country.