Nepal is facing an unprecedented energy crisis caused by an acute shortage of power and fuel supply. To improve energy security and stimulate economic growth, the government is accelerating the sustainable development of Nepal's hydropower potential. This publication highlights Nepal's energy sector performance, major development constraints, and government development plans and strategy. It outlines the future support strategy of the Asian Development Bank (ADB) whose main focus is to make the country's energy sector a key driver of inclusive economic growth. Linked to ADB's country partnership strategy for Nepal 2013-2017, this publication provides guidance for future investment and technical assistance operations.