Nepal’s Ambitious Strategic Masterplan Aims for 28,500 MW Capacity by 2035

The Government of Nepal has introduced an ambitious strategic framework designed to transform the nation into South Asia’s primary energy exporter while achieving total domestic energy self-sufficiency over the next decade. Spearheaded by the Ministry of Energy, Water Resources, and Irrigation, the newly published 'Energy Consumption Growth and Export Strategy, 2083' lays out a comprehensive roadmap extending to the year 2035. Under this blueprint, the state aims to scale national aggregate installed power capacity to 28,500 Megawatts (MW). The strategic allocation plans to funnel 13,500 MW into domestic consumption, while the remaining 15,000 MW is slated for cross-border export to neighboring markets. To facilitate the wheeling of this unprecedented volume of electricity, the government has prioritized the fast-tracked infrastructure development of over two dozen high-capacity transmission lines and cross-border interconnectors. Domestically, vital 400 kV structural links—such as the Hetauda-Dhalkebar-Inaruwa and New Khimti-Barhabise-Kathmandu corridors—are bound to tight completion schedules ranging from BS 2082 to BS 2092 to reinforce grid reliability. Cross-border connectivity is being aggressively expanded; major 400 kV lines linking with India, including Dhalkebar-Muzaffarpur-Sitamarhi, Butwal-Gorakhpur, and Inaruwa-Purnia, are scheduled to go online sequentially. Furthermore, the Chilime Hub-Kerung 400/220 kV line is slated to establish a crucial cross-border link with China by BS 2093/94. Beyond generation and transmission infrastructure, the policy mandates an aggressive domestic demand-side stimulus. The government plans to substitute Liquefied Petroleum (LP) gas by phasing out gas subsidies and introducing targeted electricity tariffs to ensure electric cooking solutions permeate the majority of households by 2035. Concurrently, the state intends to expand the national electric vehicle (EV) charging network, transition urban transit toward electric buses, and swap industrial coal boilers with electric alternatives. Through these measures, the ministry expects to lift the national per capita electricity consumption from its current level of approximately 450 units to 1,500 units. While land acquisition, forestry clearances, and foreign direct investment (FDI) mobilization remain critical hurdles, the government has committed to drafting fast-track administrative guidelines and legislative reforms to encourage private sector participation in power trading.