Energy is a vital input for social and economic development of any nation. With increasing agricultural and
industrial activities in the country, the demand for energy is also increasing. Formulation of an energy system
planning model will help in the proper allocation of widely available indigenous energy resources such as solar,
wind, bioenergy and hydropower and imported fossils fuels in meeting the future energy demand. As Nepal is a
least developed country and aims to graduate to developing country by 2022 proper energy planning is essential
for the sustainable development. This research is done to give the overview of primary energy mix, expected
future energy demand in different scenario and its impact on graduation of Nepal. In reference scenario the future
energy consumption of Nepal is expected to increases from 420 PJ in the base year 2013 to 566 PJ in 2022
and is expected to increases to 630 PJ in vision scenario. To graduate the Nepal from Least Developed Country
category by 2022 the estimated per capita energy consumption must be 20.5 GJ and the per capita commercial
energy consumption must be 6.5 GJ. In addition per capita electricity consumption must be 225 kWh at the end
year. If Nepal moves through a different economic growth rate of 7%, 5.5% and 4 %, country will graduate from
LDC category by 2023, 2026 and after 2030 respectively. Similarly in the base year 2013, green house gas (GHG)
emission is 12 million metric tons of CO2 equivalents. In the reference scenario the GHG is estimated to increase
to 20 million metric tons of CO2 equivalents and in vision scenario the value is estimated to increase to 27 million
metric tons of CO2 equivalents in 2022.