Revolutionizing Urban Mobility: How Electric Buses and Microbuses Are Transforming Public Transport in Nepal

Nepal’s urban transport landscape is undergoing a profound transformation. With rising concerns over air pollution, greenhouse gas emissions, and traffic congestion, the country is embracing electric public transport solutions like electric buses and microbuses to reshape urban mobility. This shift not only aligns with Nepal’s climate commitments but also promises cleaner air, reduced operational costs, and enhanced commuter experiences.

This article explores Nepal’s journey toward electrifying public transport, the challenges faced, ongoing projects, and the future outlook for sustainable urban mobility.

The Need for Electrifying Public Transport in Nepal

Transport accounts for approximately 36% of Nepal’s annual greenhouse gas emissions from the energy sector, with diesel buses and mini-buses being major contributors (Mitigation Action Facility, 2025). Kathmandu and other urban centers suffer from poor air quality, causing health issues and reducing quality of life.

Given Nepal’s abundant hydropower resources that generate nearly 100% of its electricity, electric vehicles (EVs) offer a clean, cost-effective alternative to fossil-fueled public transport. Transitioning to electric buses and microbuses can significantly cut emissions, noise pollution, and fuel expenses.

Government Targets and Policy Framework

Nepal’s second enhanced Nationally Determined Contributions (NDCs) set ambitious targets:

• 20% of public transport vehicles to be electric by 2025

• 60% by 2030

• 90% by 2035 (Mitigation Action Facility, 2025; Asian Transport Observatory, 2024)

To achieve this, the government has introduced policies supporting EV adoption, including tax incentives, subsidies, and infrastructure development. The establishment of a dedicated Electric Mobility Unit at the national level aims to coordinate efforts across ministries and stakeholders.

Major Projects Driving the Shift

Sustainable Electric Transport for Nepal (SET4NPL)

The SET4NPL project is a flagship initiative focused on electrifying micro- and mini-buses nationwide. It aims to deploy 3,500 electric micro- and mini-buses (EMBs) by 2028, supported by:

• Financial mechanisms like hybrid loans and leasing

• Scrapping incentives for old diesel vehicles

• Expansion and digitalization of public charging infrastructure

• Introduction of digital ticketing and route planning apps to improve passenger convenience (GIZ, 2025)

Sajha Yatayat: A Leading Example

Kathmandu’s Sajha Yatayat cooperative operates approximately 40 electric buses, supported by dedicated charging stations. This fleet has reduced urban emissions and operational costs, while enhancing commuter comfort and reliability (Nepal Economic Forum, 2025).

Expansion of Charging Infrastructure

To support electric public transport, Nepal has installed over 60 fast-charging stations capable of charging buses and microbuses efficiently. These stations are strategically located along major routes and bus parks, reducing downtime and ensuring smooth operations (Farsight Nepal, 2023).

Benefits of Electric Public Transport

• Environmental Impact: Electric buses and microbuses emit zero tailpipe emissions, significantly improving air quality in congested cities. Over their lifetime, electric public transport vehicles can reduce millions of tons of CO2 equivalent emissions (Mitigation Action Facility, 2025).

• Cost Savings: Lower fuel and maintenance costs make electric buses economically attractive for operators. Reduced noise pollution also improves urban livability.

• Improved Passenger Experience: Digital ticketing and route planning apps introduced by SET4NPL enhance accessibility and convenience, encouraging more people to use public transport.

Challenges and Barriers

Despite progress, several barriers remain:

• High upfront costs of electric buses and microbuses limit adoption by private operators.

• Charging infrastructure gaps outside major urban centers hinder route expansion.

• Policy and regulatory uncertainties create risks for investors and operators.

• Limited technical capacity for maintenance and operation of EV fleets.

The SET4NPL project and government agencies are working to address these challenges through financial support, capacity building, and policy reforms.

Future Outlook: Towards a Green Mobility Revolution

By 2030, Nepal aims to have over 60% of public transport vehicles electrified, with plans to develop 200 km of electric rail networks as well (Asian Transport Observatory, 2024). Continued investment in infrastructure, financing models, and digital technologies will be key to scaling electric public transport.

The creation of green jobs, promotion of clean transport entrepreneurship, and improved urban air quality will contribute to Nepal’s sustainable development goals and economic recovery post-pandemic.

Conclusion

Electric buses and microbuses are transforming urban mobility in Nepal, offering a cleaner, more efficient alternative to diesel-powered public transport. Supported by ambitious government targets, innovative projects like SET4NPL, and expanding charging infrastructure, Nepal is on a promising path toward sustainable, accessible, and green public transportation.

References

Asian Transport Observatory. (2024). Nepal e-mobility profile. Retrieved from https://asiantransportobservatory.org/analytical-outputs/emobilityprofiles/nepal-emobility-profile/

Farsight Nepal. (2023). 51 EV charging stations installed amid growing demand for four-wheeler EVs. The Farsight Nepal. Retrieved from https://farsightnepal.com/news/228

GIZ. (2025). Electrifying public transport in Nepal. Retrieved from https://www.giz.de/en/worldwide/143227.html

Mitigation Action Facility. (2025). Nepal – Electric transport. Retrieved from https://mitigation-action.org/projects/nepal-electric-transportation/

Nepal Economic Forum. (2025). Decoding the rise of electric vehicles in Nepal. Retrieved from https://nepaleconomicforum.org/decoding-the-rise-of-electric-vehicles-in-nepal/

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