The Energy Transition in Nepal

Nepal is rapidly advancing towards a more sustainable energy future, with a strong focus on hydropower, its primary energy source. As the country works to harness its renewable energy potential, Nepal is also exploring the diversification of its energy mix through solar power and energy-efficient technologies. The nation’s limited but important critical mineral reserves, such as iron and lead, are increasingly seen as valuable for regional and global clean energy transitions, particularly in the production of green technologies. Nepal's growing commitment to ESG principles is helping drive responsible energy development and resource management. Geopolitically, Nepal is actively engaged in regional cooperation, with ties to the United Nations, SAARC, and the Shanghai Cooperation Organization (SCO), facilitating cross-border energy trade and collaboration on energy security. As Nepal continues to develop its energy infrastructure and critical mineral resources, it is positioning itself as a vital player in the region’s clean energy future, enhancing both regional grid connectivity and its sustainable development goals.