Demand for energy increases with increase in population, industrialization,urbanization and a change in life styles. Efforts are being placed to tap new energy sources to meet the growing demand. Modern technology helps out even the natural variability in space and time as water is transferred to energy to meet the growing needs of cities, industries, service and agriculture. Overall progress depends on the adequate provision of energy. Over 85 percent of the energy requirement of Nepal is being met by traditional source while a share of commercial energy is about 17 percent of which oil makes up more than 80 percent. Nepal needs to place efforts to generate electricity from its untapped water resources. Human economic activities depend on adequate, reliable, and affordable energy.Socio economic activities have exploded but adequate and reliable commercial energy at affordable prices have not kept pace. The discrepancy is one of the most fundamental issues that Nepal is facing. Attempt is made to assess the energy consumption pattern in association with the energy resource base potential with a view to formulate the nation’s future energy plan.