Nepal has seen rapid adoption of electric vehicles (EVs) in recent years, with a notable increase in electric cars, bikes, scooters, public buses (e.g., Sajha Yatayat), and three-wheelers. This transition is driven by Nepal’s abundant hydropower resources and government initiatives promoting EVs through subsidies, tax reductions, and infrastructure investments.
In alignment with its Second Nationally Determined Contribution (NDC) goals, Nepal aims to achieve 90% of all private passenger vehicle sales (including two-wheelers) being electric by 2030. Additionally, 60% of all four-wheeler public passenger vehicle sales (excluding electric rickshaws and electric tempos) are targeted to be electric by the same year. To support this transition, Nepal has been actively expanding its EV charging infrastructure, with 186 public charging stations facilitated and 163 installed in the fiscal year 2023/24. Charging station operators can charge up to 20% above the base electricity tariff, and the Nepal Electricity Authority (NEA) provides a 200kVA transformer for efficient operation of a 160kW charging station.
Furthermore, Nepal’s NDC goals include developing 200 km of electric rail network by 2030 to enhance public commuting and mass transportation of goods. This ambitious target underscores Nepal’s commitment to sustainable transportation and reducing greenhouse gas emissions, leveraging its clean energy potential and fostering a greener future.
1. Government Policies and Incentives for EVs in Nepal
The Nepalese government has taken significant steps to promote EV adoption, including:
- Reduced Tax Rates: Import duties and taxes on EVs are lower compared to fuel-based vehicles.
- Subsidies for Infrastructure: Investment in EV charging stations and grid upgrades.
- Public Transport Electrification: Plans to reduce carbon emissions by transitioning public transport to electric.
- Net-Zero Commitment: Nepal aims to achieve net-zero emissions by 2045 and increase EV adoption to 60% by 2030.
- National Policies Supporting EVs: Policies like the 15th Periodic Plan (2019/20-2023/24), Environment-Friendly Vehicle and Transport Policy (2014), and the National Climate Change Policy (2019) actively promote EV adoption and provide financial incentives.
2. Challenges and Barriers to EV Adoption in Nepal
Despite progress, several challenges hinder EV growth in Nepal. Unclear or inconsistent policies, along with slow implementation, create policy gaps that make adoption difficult. Infrastructure issues such as limited charging stations and the complexity of obtaining permits for new installations further slow progress. Additionally, while the government promotes electrification, uncertainty remains regarding the grid’s capacity to handle increased demand. Moreover, a lack of public awareness about EV benefits and available incentives continues to be a significant obstacle to widespread adoption. Despite progress, several challenges hinder EV growth in Nepal:
- Policy Gaps: Unclear or inconsistent policies, with slow implementation.
- Infrastructure Issues: Limited charging stations and difficulty obtaining permits for new installations.
- Grid Capacity Concerns: The government promotes electrification, but uncertainty remains over grid capacity to handle increased demand.
- Lack of Awareness: Limited public knowledge about EV benefits and incentives.
3. Future of Electric Mobility in Nepal
With ongoing support from NEA, donor agencies like ADB, private organizations, and international partners, Nepal is on a strong trajectory toward clean transportation. The government’s long-term plans include expanding the EV market, strengthening infrastructure, and achieving a 50% reduction in fossil fuel dependency in transport by 2050. While challenges persist, Nepal’s progress in EV adoption marks a positive shift towards a sustainable and energy-independent future.
1. EV Charging Tariffs in Nepal (FY 2023/24)
Demand Charge and Energy Charge for EV Charging Stations
| Voltage Level | Category | Demand Charge (NRs./kVA per month) | Energy Charge (NRs./kWh) |
| Medium Voltage (33 kV) | Public Transportation (Charging Station) | 230.00 | 5.60 |
| Medium Voltage (33 kV) | Other Transportation | 255.00 | 8.60 |
| Medium Voltage (11 kV) | Public Transportation (Charging Station) | 230.00 | 5.60 |
| Medium Voltage (11 kV) | Other Transportation | 255.00 | 8.80 |
| Low Voltage (230/400 V) | Public Transportation (Charging Station) | 200.00 | 5.75 |
| Low Voltage (230/400 V) | Other Transportation | 220.00 | 8.90 |
- Time-of-Day (ToD) Tariff Rates for EV Charging
- Tariff Rate from Baisakh to Mangsir
| Voltage Level | Consumer Category | Demand Charge Nrs./kVA/month | Peak Time (NRs./kWh) (17:00-23:00) | Off-Peak Time (NRs./kWh) (23:00-5:00) | Normal Time (NRs./kWh) (5:00-17:00) |
| High Voltage (66 kV or above) | Public Transportation (Charging Station) | 230 | 7 | 3.70 | 5.50 |
| Other Transportation | 255 | 9.35 | 3.70 | 8.40 | |
| Medium Voltage (11 kV) | Public Transportation (Charging Station) | 230 | 7.15 | 4.20 | 5.60 |
| Other Transportation | 255 | 9.65 | 4.20 | 8.50 | |
| Low Voltage (230/400 V) | Public Transportation (Charging Station) | 200 | 7.25 | 4.30 | 5.75 |
| Other Transportation | 220 | 9.75 | 4.30 | 8.60 |
- Tariff Rate from Paush to Chaitra
| Voltage Level | Consumer Category | Demand Charge Nrs./kVA/month | Peak Time (NRs./kWh) (17:00-23:00) | Off-Peak Time (NRs./kWh) (23:00-5:00) |
| Medium Voltage (33 kV) | Public Transportation (Charging Station) | 230 | 7 | 5.50 |
| Other Transportation | 255 | 9.35 | 8.40 | |
| Medium Voltage (11 kV) | Public Transportation (Charging Station) | 230 | 7.15 | 5.60 |
| Other Transportation | 255 | 9.65 | 8.50 | |
| Low Voltage (230/400 V) | Public Transportation (Charging Station) | 200 | 7.25 | 5.75 |
| Other Transportation | 220 | 9.75 | 8.60 |
- Tariffs for Automatic Swap Card Users (Without Demand Charge)
- Public Transportation Charging Stations
- Tariff Rate from Baisakh to Mangshir
- Public Transportation Charging Stations
| Voltage Level | Peak Time (NRs./kWh) (17:00-23:00) | Off-Peak Time (NRs./kWh) (23:00-5:00) | Normal Time (NRs./kWh) (5:00-17:00) |
| Medium Voltage (33 kV) | 8.40 | 4.45 | 6.60 |
| Medium Voltage (11 kV) | 8.60 | 5.05 | 6.70 |
| Low Voltage (230/400 V) | 8.70 | 5.05 | 6.90 |
- Tariff Rate from Paush to Chaitra
| Voltage Level | Peak Time (NRs./kWh) (17:00-23:00) | Normal Time (NRs./kWh) (23:00-17:00) |
| Medium Voltage (33 kV) | 8.40 | 6.60 |
| Medium Voltage (11 kV) | 8.60 | 6.70 |
| Low Voltage (230/400 V) | 8.70 | 6.90 |
- Tariffs for Other Transportation
- Tariff Rate from Baisakh to Mangsir
| Voltage Level | Peak Time (NRs./kWh) (17:00-23:00) | Off-Peak Time (NRs./kWh) (23:00-5:00) | Normal Time (NRs./kWh) (5:00-17:00) |
| Medium Voltage (33 kV) | 11.20 | 4.45 | 10.10 |
| Medium Voltage (11 kV) | 11.60 | 5.05 | 10.20 |
| Low Voltage (230/400 V) | 11.70 | 5.15 | 10.30 |
- Tariff Rate from Paush to Chaitra
| Voltage Level | Peak Time (NRs./kWh) (17:00-23:00) | Normal Time (NRs./kWh) (23:00-17:00) |
| Medium Voltage (33 kV) | 11.20 | 10.10 |
| Medium Voltage (11 kV) | 11.60 | 10.20 |
| Low Voltage (230/400 V) | 11.70 | 10.30 |
Disclaimer: This blog may contain some inaccuracies, and readers are encouraged to verify the information before use. Some content and facts have been sourced from the National Strategy for Electrification of Public Transport in Nepal 2022 (United Nations Publication, 2023), Nepal Electricity Authority (NEA): A Year in Review – Fiscal Year 2023/24, and the Aircharged website