Summary
- Taxi driver in Kathmandu bought an electric cab due to cheap energy prices
- More than 40,000 electric vehicles are on the roads in Nepal, with demand increasing
- Country has invested in dams and now generates 99% of its power from hydropower
- Nepal aims to increase its installed power generation capacity to 30,000 megawatts in the next decade
- Switch to electric vehicles can help reduce greenhouse gas emissions and air pollution in Kathmandu
Article
In Kathmandu, taxi driver Surendra Parajuli is reaping the benefits of the city’s energy revolution by switching to an electric cab. A decade ago, chronic power cuts left Nepalis in the dark, but a dam-building spree has led to cheap energy prices in the landlocked Himalayan republic. This has enabled Parajuli to save a significant amount of money by using a battery-powered and Chinese-made BYD Atto 3 cab. The shift towards electric vehicles is gaining momentum in Kathmandu, with more than 40,000 electric vehicles already on the road, a small fraction of the 6.2 million motor vehicles in service. Neighboring China is supplying nearly 70 percent of the electric vehicles in the market, highlighting the growing demand for emissions-free alternatives in the city.
The rapid investment in dams in Nepal has transformed the country’s energy grid, with hydropower now generating 99 percent of the country’s baseload power. This has resulted in a fourfold increase in hydropower output in the past eight years, with 95 percent of the population now having access to electricity. Nepal has also signed deals to export surplus power to coal-dependent India, with plans to raise its current 3,200 megawatts of installed power generation capacity to 30,000 megawatts over the next decade. The availability of cheap and universal electricity has the potential to jumpstart the country’s economy, which has traditionally relied on remittances from Nepalis working abroad. The Nepal Electricity Authority has credited the energy revolution with creating favorable conditions for the widespread adoption of electric vehicles in the country.
By transitioning to electric vehicles, Nepal is reducing its reliance on fossil fuel imports from India, which has imposed additional costs on motorists in the country. According to Kulman Ghising of the Nepal Electricity Authority, curbs on demand for fossil fuels have saved Nepal around $224 million. Unlike neighboring countries like India and Bangladesh, where electric vehicles rely on coal for power, Nepal benefits from fully green energy. With road transport accounting for just over 5 percent of greenhouse gas emissions and exacerbating air pollution, getting more petrol-powered vehicles off the road in Kathmandu is seen as a crucial step towards addressing these environmental challenges. The city was listed as one of the world’s most polluted cities in April, underscoring the urgent need for cleaner transportation alternatives.
The shift towards electric vehicles in Kathmandu is part of a larger trend towards sustainable transportation solutions in the city. While electric vehicles currently represent a small fraction of the overall vehicle population in Nepal, their share is rapidly increasing, with demand outstripping supply. China, as a global leader in electric vehicles, plays a significant role in supplying electric vehicles to the Nepali market. The availability of reliable and affordable electricity has been a key driver of this transition, with the country’s hydropower capacity meeting the bulk of its energy needs. The government’s ambitious plans to expand its power generation capacity further signal a commitment to sustainable energy solutions that can benefit both the environment and the economy. Overall, the energy revolution in Kathmandu and Nepal as a whole has the potential to transform the transportation sector and pave the way for a cleaner and more sustainable future.
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