However, approximately 810 MW
is only available from various sources as per Nepal Electricity Authority. There is a power deficit in
the country resulting in daily load shedding (the situation improving in the wet season and becoming
bad in the dry season).
In dry season, the production will be reduced by 65% to 70% increasing the gap of demand and
supply chain.
The electricity demand has been increasing in Nepal by about 7-10% per year, and only about 40 % of
population has access to electricity through the grid and off grid system. The main load centre is the
central zone which includes the Kathmandu Valley.

Demand Forecast by NEA
The electricity demand is forecast to reach about 5,785 MW in the financial year 2033-34, (medium
growth scenario) which is an increase of some 4,400 MW from the present peak demand. The energy
forecast indicates an energy output of 28,329.85 GWh by fiscal year (FY) 2033-34.
Similarly, as per the projection of Nepal Electricity Authority, 1900 MW energy will be produced in
wet season till 2020 AD from the currently running projects and the projects whose PPA and financial
closure is done till date.

Demand Forecast by Government of Nepal, Water and Energy Commission Secretariat

As per the Electricity Demand Forecast Report (2015-2040) of Nepal, Water and Energy Commission
Secretariat, the installed capacity requirement will reach up to 18,000 MW in 2025 and more
than 50,000 MW by 2040 if the policy interventions are made and if 9.2% GDP growth rate is
achieved.