Nepal’s Energy sector offers abundant opportunities for investment and production: Karki

KATHMANDU: Ganesh Karki, Chairman of the Independent Power Producers’ Association, Nepal (IPPAN), has highlighted the immense investment and business opportunities in Nepal’s energy sector. Speaking on the second day of the Nepal Infrastructure Summit, Karki stated that there are significant prospects for capital investment in energy production and the manufacturing of necessary machinery.

Addressing the discussion on energy and water resources, Karki emphasized the requirement of NPR 4.6 trillion for the production of 28,500 MW of electricity, presenting substantial opportunities for banks, insurance companies, reinsurance firms, suppliers, designers, and consultants.

“For the production of 28,000 MW, an investment of NPR 4.6 trillion is required. This opens up vast investment opportunities, not only for financial institutions like banks and insurance companies but also for suppliers, designers, and consultants,” Karki said.

He also called for necessary policy reforms from the government to facilitate the development of energy infrastructure in Nepal.

“Currently, it takes navigating through 14 ministries and over 40 departments to complete a project. The government has set a target of producing 28,000 MW, but to achieve this, a one-stop system needs to be established,” Karki noted.

He further pointed out that several completed electricity projects are currently wasted due to a lack of transmission lines. Karki urged the government to allow the private sector to take responsibility for constructing transmission lines.

Additionally, Karki stressed that if Nepali private companies are given the authority to trade electricity, they could easily collaborate with Indian and Bangladeshi firms to sell power, calling on the government to enact the necessary policies to support this.

At the same event, Dr. Ram Prasad Dhital, Chairman of the Electricity Regulatory Commission, said the commission is working to facilitate the private sector through regulatory frameworks. He mentioned that the commission is focusing on wheeling charges, open access, and competitive markets.

CEO of the Nepal Water and Energy Development Company, Yongjing Hong, which is developing a 216 MW project with foreign investment, shared the challenges faced in completing projects due to the involvement of numerous government entities at different stages.

Sujata Gupta, Energy Sector Officer at the Asian Development Bank (ADB), revealed that ADB has already invested 40% in the construction of transmission lines in Nepal and plans to inject an additional $1.5 billion into the energy sector over the next five years.

During the event, IPPAN advisor Kumar Pandey presented a paper outlining the challenges faced by developers while undertaking projects in Nepal. Another presenter, Keshav Dhwaj Adhikari, provided insights into how, despite being rich in water resources, Nepal lags behind in energy production and consumption.

This event has further shed light on the critical need for infrastructure development, policy reforms, and private sector involvement to ensure the optimal use of Nepal’s vast energy potential.