Nepal’s abundant hydroelectric power is playing a crucial role in reducing the country’s oil imports and improving air quality, thanks to a surge in electric vehicle (EV) sales. Nearly all of Nepal’s electricity is generated from clean energy sources, primarily river-fed hydroelectricity. This renewable energy source has facilitated a rapid expansion of charging infrastructure and a significant increase in EV imports, which have doubled in each of the past two years according to customs data.
The Nepal Electricity Authority (NEA) estimates that the adoption of EVs has cut oil import costs by $22 million annually, with these savings continuing to grow. Over the past three decades, access to electricity has dramatically increased in Nepal, with all but 6% of the population now connected to the national grid. This extensive electrification is enabling Nepal to outpace its neighbors in EV adoption.
Nepal’s current peak power production capacity stands at 2,600 megawatts, primarily from hydropower, with a minor contribution from solar power. Environmental and civil rights activist Kanak Mani Dixit emphasized the benefits of Nepal’s clean energy grid for EVs, noting, “Our electricity in the grid is from hydropower so it is clean energy. And so Nepal is ideally placed to use electricity to run our vehicles in the best way it should be, which is that the energy source itself is clean. It is not coal, gas, nuclear, or petroleum.”
Though official sales data are unavailable, the Chinese automaker BYD’s Atto 3 and Indian manufacturer Tata’s Nexon are popular among electric passenger sedan buyers. Nepal has integrated EV adoption into its national climate commitments, aiming for EVs to constitute 25% of all auto sales by 2025 and 90% by 2030. To incentivize EV purchases, the government has set lower import duties on EVs, ranging from 25% to 90%, compared to the steep 276% to 329% duties on gasoline and diesel vehicles.
The country has also rapidly increased the number of charging stations, with Sagar Mani Gnawali, head of the Electric Vehicle Charging Infrastructure Development department, reporting that Nepal now has 400 charging stations, with plans to double that number within a year.
Jyotindra Sharma, a cardiac surgeon who has driven a 2019 KIA Niro EV for four years, expressed satisfaction with his vehicle, noting its environmental benefits and cost efficiency. “I am extremely happy using an electric vehicle because I could contribute to the environment compared to the petrol cars,” Sharma said. “The electricity cost for charging and everything is much less and I got a much, much more luxurious car for the same price compared with gas-fueled cars.”
EV adoption extends to public transportation as well, with drivers like Bhakta Kumar Gupta switching from diesel to electric vans. Gupta, who ferries passengers daily from Kathmandu to southern Nepal, highlighted the cost savings and environmental advantages of his EV, which reduced his daily fuel expenses from $40 to $6.
However, Kathmandu still faces challenges with pollution from conventional buses and other vehicles, making it one of the most polluted cities in the world for several days in April. Shifting to more EVs is critical for improving public health and reducing environmental damage, according to Dixit. “We desperately need that for the sake of our health and for the sake of our economy’s health, individuals’ health and our lungs as well as our national health,” he stated.
Overall, Nepal’s transition to EVs, supported by its clean hydropower, is a significant step towards sustainable development and environmental conservation.