This paper aims to project the energy demand for the
period 2009-2050 in Nepal, a developing country with large
hydropower potential. A bottom up energy system of Nepal based
on Model for Analysis of Energy Demand (MAED) framework
has been developed to access the effect of meeting part of end use
demand in different sectors of economy with electricity. It shows
that the final energy demand in Nepal will increase by 2.4 times
to 963 PJ by 2050 as compared to 397 PJ in 2009 under reference
scenario which have been developed based on a Gross Value
Added (GVA) growth rate of 5.8 percent. With the increased
penetration of electricity in the end use demand of various sectors
the final energy demand will increase only by 1.2 times by
2050.The share of imported energy reduces to 21% of the total
energy consumption by 2050 in the sustainable energy scenario as
compared to 25% in the reference scenario from the base year
share of 9%.