Surendra Parajuli, a taxi driver in Kathmandu, has made a significant change in his career by investing in an electric cab—a move that would have seemed impossible just a decade ago when power cuts frequently left many Nepalis in darkness. Thanks to a surge in dam construction, electricity prices in the landlocked Himalayan nation have plummeted, allowing Parajuli to enjoy substantial savings with his new battery-powered BYD Atto 3.
“It provides 300 kilometers (186 miles) on a single charge and costs me only a tenth of what petrol does. Plus, it’s environmentally friendly,” Parajuli shared with AFP.
Kathmandu is now at the forefront of a transport revolution, with an increasing number of electric vehicles (EVs) replacing older, more polluting cars on its congested streets. Current estimates suggest that over 40,000 electric vehicles are now operating across Nepal, a modest figure compared to the 6.2 million motor vehicles in use. However, demand is rapidly increasing, with more than a quarter of EVs imported in the 12 months leading up to July, marking a near-threefold rise from the previous year.
Neighboring China, a global leader in electric vehicle production, is currently supplying approximately 70 percent of Nepal’s electric vehicle market. “EVs are genuinely suitable for Nepalis,” said Yajya Raj Bhatt, a potential buyer at an electric vehicle motor show. “We are no longer reliant on petrol cars; we can now drive independently.”
The Nepalese government has reduced import duties on electric vehicles, seeing them as a vital component in achieving its ambitious goal of becoming a net-zero greenhouse gas emitter by 2045.
Transformative Energy Landscape
The transformation of Nepal’s energy landscape has been remarkable. At the beginning of the century, more than 80 percent of the population lacked access to electricity, according to the International Energy Agency. However, significant investments in hydropower have altered this reality. The output of hydropower has quadrupled in the past eight years, resulting in 95 percent of the population now having electricity access.
The country has already signed agreements to export surplus electricity to coal-dependent India, with plans to ramp up its power generation capacity from the current 3,200 megawatts to 30,000 megawatts in the next decade. This surge in energy production is expected to stimulate an economy that has long relied on remittances from Nepalis working abroad.
Kulman Ghising of the Nepal Electricity Authority highlighted that the growth in electric vehicle adoption has benefited from the favorable conditions created by the energy boom. Despite being entirely dependent on fossil fuel imports from India, which raises costs for motorists, the shift to electric vehicles has helped Nepal save around $224 million. “The EVs have great potential for us,” Ghising noted. “While EVs in India and Bangladesh rely on coal, in Nepal, we can use fully green energy.”
Aiming for Sustainability
With road transport responsible for just over five percent of greenhouse gas emissions, the push towards electric vehicles is seen as critical in addressing air pollution issues. Kathmandu has recently been identified as one of the world’s most polluted cities, underscoring the urgency of transitioning to cleaner transportation. Nepal has set an ambitious target for electric vehicles to comprise 90 percent of all private vehicle purchases by the decade’s end.
However, skepticism remains regarding the environmental implications of this rapid shift. Critics are concerned about the potential ecological impact of new hydropower projects, especially as the government has recently approved dam constructions that could affect protected areas, including forests and tiger habitats. Furthermore, the risks of floods and landslides—exacerbated by climate change—pose additional challenges to these hydropower initiatives.
There are also significant concerns regarding electronic waste management as the government promotes electric vehicles without adequately planning for the disposal of lithium-ion batteries, which contain hazardous materials. “The government does not seem far-sighted on this issue; it is only focused on immediate problems,” warned Nabin Bikash Maharjan from the recycling enterprise Blue Waste to Value. “It is crucial for the government to prioritize this issue to prevent additional pollution.”
As Nepal navigates its electric vehicle boom, balancing sustainable development with environmental stewardship will be crucial for a greener future.
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