KATHMANDU: Nepal aims to produce 28,500 megawatts (MW) of electricity over the next decade, requiring an investment of Rs 6.5 trillion, with Rs 4 trillion expected to remain within the country, according to government projections.
The announcement came during the funding management agreement signing for the 49.95 MW Danakhola Hydropower Project, led by Lalupate Hydropower Company, in Manang’s Nasong Rural Municipality-2.
Addressing the event, Energy Minister Deepak Khadka emphasized the government’s commitment to energy sector growth through private-sector collaboration. Meanwhile, Ganesh Karki, President of the Independent Power Producers’ Association, Nepal (IPPAN), highlighted the economic benefits of this substantial investment, which will drive employment and demand for construction materials like cement and iron rods.
Nepal recently secured a long-term inter-country power trade agreement with India to export 10,000 MW and has finalized a deal to supply 40 MW to Bangladesh, with plans to expand exports by an additional 15,000 MW.
The government’s roadmap for achieving 28,500 MW capacity within 10 years signals a promising future for the nation’s energy sector, said Karki.
The private sector currently contributes 2,100 MW to Nepal’s total hydropower output of 2,800 MW. Over 169 hydropower projects, 91 of which are listed on the Nepal Stock Exchange, are being developed by private entities, attracting investment from over 4 million individuals.
Hydropower projects with a combined capacity of 3,200 MW are under construction, while others totaling 3,500 MW are in the process of financial closure. Projects capable of producing an additional 12,000 MW await government Power Purchase Agreements (PPAs), and feasibility studies are underway for another 12,000 MW.
Research by the Water and Energy Commission highlights Nepal’s capacity to generate 120,000 MW of hydroelectricity, with potential for 30,000 MW of solar power. Seasonal studies suggest electricity generation could exceed 200,000 MW during the rainy season.
The Danakhola Hydropower Project, valued at Rs 9.96 billion, is backed by Sanima Bank and is scheduled for completion by October 2028. Sanima Bank CEO Nischal Raj Pandey and Lalupate Hydropower Chairman Mohan Kumar Dangi signed the funding agreement at the project site.
With Nepal striving to maximize its energy resources, the country is poised to become a major player in regional power trade, contributing significantly to economic growth and energy security.
Comment