The two major challenges of energy poverty are lack of access to electricity and reliance on biomass sources of energy for cooking. Nepal has the highest energy poverty in the South Asia with just 90 kWh of electricity and 15 GJ of primary energy consumptions per capita in a year. Nepal, because of its poor economic performance compared to other South Asian countries and its total dependence on imports of oil products, has to seriously take certain policy/strategy steps for its energy security and sustainability. Against this backdrop, an end-use approach modelling framework on the basis of Model for Analysis of Energy Demand (MAED) was developed from 2010 to 2030. Useful demand projection for each sector of the economy at 4.5%, 5.5% and 7% growth rates of GDP were obtained. Consequently, Nepal – MARKAL energy modelling framework was developed and inputs of the useful energy demands from the MAED model were exogenously incorporated in. Nepal consumed 410,000 TJ of final energy in 2010 with 85% of traditional biomass, 12% of fossil fuels, 2% of electricity and 1% of modern renewable energy. The final energy consumption in 2030 scenarios at the three different cases of GDP growth rates 4.5%, 5.5% and 7% are 685,000 TJ, 719,000 TJ and 783,000 TJ respectively. With the policy of promoting renewable energy and energy efficiency in the household sector the final energy scenario at the reference case of GDP growth rate 5.5% indicates energy consumption of 464,000 TJ in 2030 with 23% of energy supplied by indigenous renewable energy resources.