Nepal’s hydropower boom is driving a surge in electric vehicle adoption, with the government aiming for 90% EV purchases by 2030. Learn how this is reshaping the country’s transportation.
Introduction
A decade ago, the idea of owning an electric vehicle in Nepal would have seemed far-fetched, especially given the country’s chronic power shortages. Fast forward to 2024, and Nepal is in the midst of an electric vehicle (EV) revolution, powered by cheap and abundant hydropower. The rise of electric vehicles, largely imported from China, is transforming Nepal’s transport landscape and offering a greener, more economical alternative to fossil-fuel-powered cars.
This article explores how Nepal’s dam-building spree, which has quadrupled the country’s electricity output over the past eight years, is powering its EV boom and reshaping the future of transportation in this mountainous nation.
The Growth of Electric Vehicles in Nepal
Kathmandu, the bustling capital of Nepal, is the epicenter of this electric vehicle transformation. Taxi driver Surendra Parajuli recently made the switch to a Chinese-made BYD Atto 3 electric car, a decision that has drastically cut his fuel costs. “It gives 300 kilometers (186 miles) on a single charge and costs me a tenth of what petrol does,” Parajuli shared, underscoring the significant savings associated with going electric. Moreover, he notes the environmental benefits of using green energy in a city battling air pollution.
As of 2024, more than 40,000 electric vehicles are on Nepal’s roads—a small fraction of the 6.2 million motor vehicles in the country, but one that is rapidly growing. More than a quarter of these EVs were imported in the 12 months leading up to July 2024, marking a nearly threefold increase from the previous year. China, the global leader in EV manufacturing, supplies nearly 70% of these vehicles.
Hydropower: The Backbone of Nepal’s EV Revolution
Nepal’s EV boom is closely tied to its growing hydropower industry. Once plagued by power shortages, the country has undergone a remarkable transformation, largely due to hydropower investments. Currently, 99% of Nepal’s electricity is generated through hydropower, and the country is ramping up its capacity, aiming to raise its current 3,200 megawatts to 30,000 megawatts in the next decade.
This abundant, cheap, and clean energy has created favorable conditions for electric vehicle adoption. According to Kulman Ghising, head of the Nepal Electricity Authority, the rise of EVs has already saved the country approximately $224 million by reducing the need for fossil fuel imports from India.
“Nepal is unique in that its EVs run on fully green energy,” Ghising stated. This contrasts with neighboring countries like India and Bangladesh, where electric vehicles rely on electricity derived from coal.
Government Support and Future Ambitions
The Nepali government has made it clear that it sees electric vehicles as a key part of its strategy to combat climate change. EVs are subject to much lower import duties, making them more affordable for the average consumer. The government has also set an ambitious goal: by 2030, 90% of all private vehicle purchases in Nepal should be electric. This is part of a larger national plan to achieve net-zero greenhouse gas emissions by 2045.
For Nepal, transitioning to electric vehicles is not just about environmental benefits—it also holds the potential to reduce air pollution in urban centers like Kathmandu, which was listed as one of the world’s most polluted cities for several days in April 2024. Road transport, which accounts for over 5% of the country’s greenhouse gas emissions, has been a significant contributor to the worsening air quality.
Challenges on the Road Ahead
While Nepal’s electric vehicle boom is promising, it is not without its challenges. Critics have raised concerns about the environmental impact of the hydropower dams that are fueling the country’s energy grid. In 2024, the government approved a policy allowing the construction of dams in previously protected areas, including forests and tiger habitats, raising alarms among environmental campaigners. Hydropower projects are also vulnerable to natural disasters such as floods and landslides, which are becoming more frequent due to climate change.
Another challenge lies in managing the electronic waste generated by electric vehicles. Lithium-ion batteries, which power most EVs, contain hazardous materials that pose risks to both human health and the environment. Proper disposal and recycling of these batteries can be costly and complex, and Nabin Bikash Maharjan of the recycling enterprise Blue Waste to Value argues that Nepal has not yet developed adequate plans for handling this growing waste problem.
“The government does not seem far-sighted on this issue; it is just concerned with solving immediate problems,” Maharjan said, warning that failing to address the disposal of EV batteries could lead to further environmental issues in the future.
Conclusion
Nepal’s electric vehicle boom, powered by its hydropower revolution, is an encouraging sign of progress towards a greener and more sustainable future. With abundant clean energy and growing government support, the country is on track to achieve its ambitious goals of significantly increasing EV adoption and reducing carbon emissions. However, the path forward is not without challenges, particularly in managing the environmental impact of hydropower development and the disposal of EV batteries.
As Nepal looks to increase its hydropower capacity and reduce its reliance on fossil fuel imports, the continued success of its electric vehicle revolution will depend on balancing economic growth with sustainable practices.
