Review of Energy Policies and Strategies in Nepal: Challenges and Opportunities

Nepal’s energy sector is at a critical juncture, driven by the need for sustainability, energy security, and economic growth. This research examines Nepal’s energy policies and strategies through PESTLE analysis, SWOT analysis, and a global comparative framework to assess key enablers, barriers, and future directions. The study explores government initiatives in hydropower expansion, renewable energy promotion, and carbon neutrality commitments, assessing their alignment with international energy transition trends. The PESTLE analysis evaluates political stability, economic viability, social implications, technological advancements, legal frameworks, and environmental sustainability in shaping Nepal’s energy landscape. The SWOT analysis identifies strengths such as abundant hydropower resources, weaknesses including seasonal energy variability, opportunities in regional energy trade, and threats posed by climate change and investment constraints. Additionally, a comparative analysis of global energy policies highlights Nepal’s position in the transition toward a low-carbon economy. Findings indicate that while Nepal has made notable progress in renewable energy adoption and policy development, challenges such as regulatory inefficiencies, inadequate grid infrastructure, and financial limitations persist. To ensure long-term energy security and sustainability, Nepal must prioritize effective policy implementation, public-private partnerships, and investment in smart grid technologies. This research provides a comprehensive framework for policymakers, industry stakeholders, and researchers, offering insights into optimizing Nepal’s energy strategies in alignment with global best practices and emerging trends in clean energy development.