– Nepal is a very interesting case study since it has been held up as a case for how a country can transition from fossils fuel such as oil and fuelwood to renewables such as hydropower and solar energy, says Mine Islar, associate professor at Lund University Centre for Sustainability Studies (LUCSUS).
– We aimed to unpack this transition, focusing specifically on how energy is produced, distributed and used within Nepal.
In 2023, Mine Islar, LUCSUS colleague Sara Brogaard, and Sudhindra Sharma, who is the Nepalese partner in this project, undertook surveys and interview studies to map exactly what sectors used the most energy, whether it was fossil or renewable, and how the distribution network impacted access to, and use of energy and electricity. Based on a nationwide survey on how households use energy, undertaken in 2023, they found that electricity access has increased dramatically to almost 98 percent within the country. The sectors which used most energy were the residential sector, the transport sector and the industrial sector. They also found that internet access was very high, around 76 percent: where many people used their mobile phones for communication and different financial transactions.
– We were surprised to see how many people in Nepal have access to the internet, and possibility to charge their phones. This is positive as it enables communication between different parts of the country and between different groups, says Sudhindra Sharma at the IDA (Inter Disciplinary Analysts, a research organisation based in Kathmandu).
In September 2025 there was an uprising in Nepal, fuelled by a social media ban, by protesters aggrieved by elite corruption and widening inequality. In only two days they managed to displace the sitting government. Although violent in parts, Sudhindra Sharma and Mine Islar reflect that this uprising can be connected to a broader societal shift in Nepal – one where energy access plays a crucial role as it has enabled widespread communication and mobilisation.
– In a sense this uprising points to what increased electricity access can lead to, namely the agency and power to come together to challenge the status quo. Up to now many young people in Nepal have had to leave the country to find jobs. Now, they might feel a hope for the future, even though some of the means they have used have been violent, says Sudhindra Sharma
Production and distribution of energy: hydropower and solar
Yet, while access to electricity and internet is increasing, many key issues still need to be solved to transition Nepal to sustainable and affordable energy, not least under a new political rule, notes Sudhindra Sharma. Many of these centre on the production and distribution of energy. While hydropower is a promising solution, as there are many streams flowing down from the Himalayas, not all energy needs can be supported by this energy source, since the hydroelectric plants have a long gestation period, meaning that that take a long time to get built. Investment in solar power will also be needed since solar plants can be built in a relatively short period.
Due to the fact that Nepalese cook food at the same time, the distribution system is not able to withstand the load. Many industries and residential homes experience problems with unstable supply, leading to damages on production and equipment. A revamping of the distribution system, if not a complete overhaul is necessary if more households want to use electricity for cooking, notes the researchers.
Industries need stable energy supply
As part of the research project, Sudhindra Sharma and his colleagues undertook another survey and indepth study of industries in Nepal. This study highlights how many industries would like to install solar power on their factories, to ensure a stable supply of energy, and to sell surplus energy to other actors. Currently this is not possible as it is the Nepalese authorities that manage the energy supply for many of the industrial parks within the country.
The research team has now made a report based on their research with several recommendations which they presented to the relevant Nepalese authorities in June 2025. In this report, they specifically underscore the importance of autonomy for the industry in driving different energy solutions forward, such as solar, and advocate for a full redesign of the distribution network. These recommendations would support industries to expand and enable more people to find livelihoods in Nepal. Currently about 2000 people leave the country every day to find jobs in other places, and of those who stay, about eighty percent work in the informal sector with precarious social and economic security.
– For us, this project has allowed us to design research that can actually benefit the Nepalese society. We now hope that the authorities will heed our recommendations, says Sudhindra Sharma.
The majority of the energy comes from fossil fuels fuel resources
Within the scope of the research, they have also unpacked to what extent different sectors are using fossil or renewable energy sources. They found that the majority of the energy still come from firewood and fossil fuels, especially in the residential sector, where many people use wood and gas for cooking, as opposed to hydropower. This is an important finding, as it identifies how hydropower is still an underused energy source within Nepal.
– Digging deeper into how and for what people are using energy, allow us to analyse the whole societal structure of Nepal. We can see how affordable energy can lift Nepal out of poverty, support industry and become a springboard for economic growth. But for this to work, one need to ensure that the energy that is used is renewable, and that it reaches all sectors, says Sudhindra Sharma.
Mine Islar agrees:
– Supporting countries in these energy transitions is both a national and global priority for reducing climate emissions. Every transition needs to be locally anchored and tailored to that specific context. Here in Nepal, we have been able to identify important paths forward such as increased autonomy for industry, and a holistic focus on production, distribution and use of energy.
Read more about the project in the Lund University Research Portal
