Nepal’s electricity access surges to 94% as power expansion reshapes economy and daily life

KATHMANDU: Nepal’s journey toward universal electricity access has marked one of the country’s most transformative development stories, with power coverage expanding from just 68.6 percent of the population in 2010 to 94 percent in 2023, according to World Bank data.

The steady rise in electrification over the past decade has not only improved living standards but has also become a key driver of economic activity, industrial growth, and structural change in daily livelihoods.

The progress, though uneven in certain years, reflects sustained investment in hydropower generation, transmission lines, rural electrification programs, and cross-border energy cooperation.

After remaining below 70 percent in 2010 and 2011, access rose sharply to 75.2 percent in 2012 and 77.4 percent in 2013, indicating the early impact of grid expansion initiatives.

Momentum accelerated in the mid-2010s. By 2014, electricity access had climbed to 84.9 percent, before a slight dip to 82 percent in 2015, a year marked by the devastating earthquake and infrastructure disruptions.

Recovery was swift, however, with coverage jumping to 90.7 percent in 2016, underscoring the government’s focus on rebuilding and energy connectivity as part of post-disaster reconstruction.

Subsequent years showed minor fluctuations but a clear upward trend. Access stood at 86.6 percent in 2017, then surged to 93.9 percent in 2018, reflecting rapid rural grid extension and off-grid solutions such as micro-hydropower and solar systems.

The figure moderated to 89.9 percent between 2019 and 2021, suggesting consolidation and data adjustments, before climbing again to 91.3 percent in 2022 and reaching 94 percent in 2023.

This expansion in electricity access has significantly altered Nepal’s economic landscape. Reliable power supply is a foundational input for industrial production, services, and digital infrastructure.

Over the past decade, improved electrification has supported the growth of manufacturing, agro-processing, tourism facilities, and small and medium enterprises.

Industrial corridors and urban centers have benefited from more stable electricity, reducing reliance on costly diesel generators and lowering operational expenses.

The hydropower sector, in particular, has emerged as a strategic economic pillar. Increased domestic consumption, combined with seasonal electricity exports to India, has positioned energy as both a development enabler and a source of foreign exchange.

Greater electricity access has also facilitated the expansion of banking, telecommunications, and digital services, strengthening Nepal’s integration into the modern service economy.

At the household level, electrification has reshaped daily life across both urban and rural communities. Access to lighting has extended productive hours for study and work, while electric appliances have reduced drudgery in domestic tasks.

The use of electric cooking appliances, though still growing, signals a gradual shift away from traditional biomass fuels, contributing to better indoor air quality and health outcomes.

Education outcomes have improved as students gain more study time under reliable lighting and access to digital learning tools. Health posts and hospitals in previously underserved areas can now operate essential equipment, store vaccines safely, and provide better emergency services.

Communication has also been transformed, with electricity enabling widespread use of mobile phones, internet routers, and television.

Electrification has further supported the rise of remote work, digital entrepreneurship, and online services, trends that accelerated during and after the COVID-19 pandemic. Rural enterprises—from dairy chilling centers to small workshops—now depend on electricity to enhance productivity and market linkages.

Despite the progress, challenges remain in ensuring supply reliability, upgrading aging distribution infrastructure, and managing seasonal power surpluses and deficits.

However, the expansion of access itself represents a structural shift: electricity is no longer a privilege of urban centers but an increasingly universal service.

As Nepal continues to invest in hydropower generation and transmission connectivity, electricity access is expected to play an even larger role in sustaining economic growth, supporting industrialization, and improving quality of life, making energy one of the central pillars of the country’s development trajectory.