Nepal Electricity Authority (NEA): Powering Nepal’s Energy Future

Introduction

The Nepal Electricity Authority (NEA) is the government-owned utility company responsible for electricity generation, transmission, and distribution across Nepal. Established in 1985, NEA plays a pivotal role in managing the nation’s electricity supply, implementing energy infrastructure, and driving Nepal’s journey toward energy independence and renewable energy development.

Quick Facts about NEA

  • Full Name: Nepal Electricity Authority

  • Established: August 16, 1985

  • Headquarters: Durbar Marg, Kathmandu, Nepal

  • Chairman: Minister of Energy, Water Resources, and Irrigation

  • Managing Director: Kul Man Ghising (as of 2025)

  • Ownership: Government of Nepal

NEA’s Core Functions

1. Electricity Generation

NEA develops and operates a range of power plants including:

  • Hydropower Projects: The majority of Nepal’s electricity comes from hydropower.

  • Thermal Plants: Used as backup in emergencies.

  • Renewables: NEA is increasingly investing in solar and small-scale renewable energy projects.

2. Transmission and Grid Infrastructure

NEA builds and maintains high-voltage transmission lines and substations to distribute electricity efficiently across the country. Notable infrastructure includes:

  • Khimti-Dhalkebar Line

  • Upper Tamakoshi-Khimti Line

  • East-West National Transmission Corridor

3. Electricity Distribution

NEA manages power delivery to residential, commercial, and industrial customers in all 77 districts of Nepal. It also implements load management during times of energy shortage.

4. Import and Export

NEA imports electricity from India during dry seasons and has started exporting surplus energy to India during monsoon months, marking a shift toward energy trade.

Major Projects by NEA

Reforms and Modernization

Under the leadership of Kul Man Ghising, NEA underwent a remarkable transformation, including:

  • Ending Load Shedding: Once plagued by up to 18 hours of daily blackouts, Nepal became virtually load-shedding free by 2017.

  • Digital Billing and Customer Service Improvements

  • Smart Meter Installation and SCADA Systems

  • Push for Renewable Energy Integration

  • Enhanced Financial Performance: NEA turned profitable for the first time in decades.

Challenges NEA Faces

  • Power Losses: Technical and non-technical losses remain high in some areas.

  • Aging Infrastructure: Many substations and lines require upgrades.

  • Geographic Challenges: Nepal’s rugged terrain complicates transmission expansion.

  • Dependence on Hydropower: Dry season shortages remain a concern.

NEA’s Vision and Mission

Vision:

“To make electricity available to all Nepali citizens in an accessible, affordable, reliable, and sustainable manner.”

Mission:

  • Enhance generation capacity through sustainable means

  • Modernize the national grid

  • Improve service delivery and customer experience

  • Promote energy efficiency and cross-border electricity trade

Trivia & Interesting Facts

  • NEA has over 3 million active electricity consumers across Nepal.

  • It manages over 70% of the country’s electricity generation.

  • Nepal began exporting electricity to India in 2021 through the Dhalkebar-Muzaffarpur line.

Conclusion

The Nepal Electricity Authority (NEA) is more than just a utility provider—it is a symbol of progress, resilience, and ambition. From ending load shedding to spearheading hydropower mega-projects like Upper Tamakoshi, NEA continues to electrify Nepal’s path toward a sustainable and energy-secure future.

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