Although Nepal's hydroelectric potential is great and development has been rapid in recent years, the kingdom still lacks an adequate power supply. Only 15% of the population had access to electricity in 2000. It is estimated that only about 1% of Nepal's hydroelectric potential had been activated as of 1999. In 2001, total installed capacity was 388,000 kW. Production in 2000 was 1,454 million kWh, of which 90.4% was from hydropower and 9.6% from fossil fuels. Consumption of electricity in 2000 was 1.4 billion kWh. In the same year, 57% of commercial energy consumption was from petroleum, 24% from hydropower, 14% from coal, and 5% from other sources. There is an integrated grid system in central Nepal.
India has joined with Nepal in the construction of hydroelectric and irrigation projects on the Kosi and Gandak rivers. China has helped build a 10 MW plant on the Kosi as well. India has also constructed a 14 MW hydroelectric station at Devighat, in central Nepal. A 60 MW hydroelectric project on the Kulekhani, funded by the IBRD, Kuwait, and Japan, has been completed. The 144 MW Kaligandhaki "A" on the Kaligandhaki River in central Nepal began operations in 2002. In the same year, a contract was signed for construction of the 750 MW West Seti project, slated for completion in five years. Exploration for oil and natural gas deposits began in the mid-1980s. An exploration concession won by Texana Resources in 1998 was the first such venture in almost a decade.