Iran Conflict: Rising Middle East Tensions Deepen Nepal’s Energy Crisis, Is Cooking with Electricity Viable?
Following attacks by the United States and Israel on Iran, escalating tensions in the Middle East have heightened global concerns over energy security. In this context, officials in Nepal have urged the public to adopt ‘prudent consumption’ measures. The Strait of Hormuz, which handles about 20 percent of the world’s oil and gas transit, faces potential disruptions, intensifying worries worldwide. However, so far, Nepal’s electricity sector has not experienced significant pressure, and petroleum supplies remain unaffected according to government assessments.
Energy Secretary Chiranjeevi Chatout stated, “If there were shortages in gas and petroleum supply, pressure on electricity might increase, but currently our system does not show such strain.” He added, “Our electricity infrastructure relies on hydropower and some solar energy, with no thermal plants in operation.” A spokesperson for the Nepal Electricity Authority reported a roughly 5 percent rise in consumption of cooking gas, diesel, and petrol. According to spokesperson Manoj Kumar Thakur, price adjustments have become necessary due to increased prices on international markets. He said, “We advise consumers to use bioenergy sparingly and to increase the use of electrical appliances wherever possible.”
The Ministry of Energy, Water Resources, and Irrigation reports that Nepal’s total installed hydropower capacity has surpassed 4,000 megawatts. Secretary Chatout explained that current consumption is around 2,000 megawatts and is expected to reach approximately 2,500 megawatts within a few years. “There may be a need to import some electricity for about two months before the monsoon begins, which is a challenging period, but hydropower generation will stabilize supply through the Dashain festival period.” Presently, solar power contributes about 150 megawatts to electricity production. Chatout added, “During the rainy season, even with an installed capacity of 4,000 megawatts, consumption near 2,700 megawatts does not cause issues, and we can even export electricity at that time.” Nepal reportedly imports approximately 500 megawatts of electricity from India during peak hours.
According to Nepal’s petroleum regulations, daily consumption of petrol ranges between 20 to 25 million liters, while diesel consumption is about 40 to 45 million liters per day. The monthly demand for cooking gas stands at roughly 45,000 metric tons. The Nepal Living Standards Survey (Fourth) 2022/23 indicates that nearly 50 percent of households use traditional fuels (wood, gasohol, etc.) for cooking. Compared to the previous (third) survey, there has been a 14 percent decline in households using traditional fuels and an 18 percent increase in LPG usage, reaching 46.6 percent.
Oil Corporation spokesperson Thakur noted, “Only 5 percent of people cook using electricity. Should more LPG users transition to electricity for cooking, substantial energy savings could be achieved.” However, he also highlighted that those who use electricity for cooking do not depend exclusively on it and stated, “Energy savings will occur if gas use is limited and managed prudently.”
Energy Secretary Chatout added, “Though a comprehensive international assessment is lacking, new strategies related to electricity consumption will be developed if the crisis deepens. We are continuously discussing potential scenarios. Even if demand increases, we can manage the situation promptly.” According to data from the International Energy Agency (IEA) in 2023, Nepal’s net energy imports account for 27.3 percent of its total energy system.
