Gotv urges donor agencies to invest in Nepal’s hydropower sector

KATHMANDU: Minister for Energy, Water Resources, and Irrigation Deepak Khadka has called on donor agencies to bolster investments in Nepal’s hydropower sector as the government aims to generate 28,500 MW of electricity by 2035 under its newly approved ‘Energy Development Roadmap-2081.’

At a high-level discussion with heads and representatives of donor agencies, Minister Khadka expressed gratitude for their continued support in Nepal’s energy development. He highlighted the roadmap’s focus on transforming Nepal into a regional energy hub by strengthening national and cross-border energy infrastructure, fostering energy security, and advancing inclusive economic growth.

Energy Development Roadmap: A Vision for Nepal’s Prosperity
The roadmap emphasizes sustainable energy generation, distribution, and the development of cross-border transmission lines. Minister Khadka underscored that Nepal’s abundant water resources present unparalleled investment opportunities.

He expressed confidence in key hydropower projects, such as the Upper Arun Reservoir Project supported by the World Bank and the Dudhkoshi Reservoir Project backed by the Asian Development Bank (ADB), being completed on time. He urged development partners, international organizations, and the community to actively implement the roadmap to realize Nepal’s economic development goals.

Investment Challenges and Calls for Collaboration
Madhu Prasad Bhetuwal, Secretary at the Water and Energy Commission Secretariat, acknowledged challenges in energy production, transmission, and distribution, emphasizing the need for collective efforts to overcome these hurdles.

Ministry estimated that USD 46.5 billion will be required to achieve the roadmap’s targets. He noted progress, with 11,161 MW of power purchase agreements (PPAs) already signed and an additional 12,968 MW of PPAs in the pipeline.

Chairman of the Electricity Regulatory Commission, Dr. Ram Prasad Dhital, described the roadmap as a cornerstone for Nepal’s energy sector and called for robust support from development partners in its implementation.

Commitment from Donor Agencies
Asian Development Bank (ADB) Country Director for Nepal, Arnaud Cauchois, affirmed continued support for Nepal’s energy ambitions, emphasizing that the roadmap would not only advance Nepal’s economic prosperity but also strengthen South Asia’s energy economy.

Representatives from leading organizations, including the World Bank, JICA, GIZ, USAID, UNDP, and the Norwegian Embassy, pledged their commitment to Nepal’s energy goals.

Managing Director of the Nepal Electricity Authority, Kul Man Ghising, highlighted the Authority’s focus on reservoir-based projects to meet the roadmap’s objectives. He expressed gratitude for the unwavering support from donor agencies in Nepal’s electricity development.

As Nepal moves forward with its ambitious energy plans, the collaboration between the government, donor agencies, and stakeholders remains crucial to unlocking the country’s hydropower potential and driving economic growth.