Nepal's Energy Sector: From 113-Year-Old Hydro to Investment Boom and Future Challenges
Summary
Nepal's hydropower sector has grown from its first plant in 1911 to nearly 4,000 MW installed capacity, becoming a net electricity exporter during monsoon but still reliant on imports in winter. The private sector drives 80% of production, with massive investments fueling expansion amid future challenges such as seasonal production fluctuations and the need for storage projects.
Key Points
- Nepal began hydropower generation in 1911 with the Pharping Hydropower Plant and now has an installed capacity of nearly 4,000 MW.
- The private sector contributes about 80% of electricity production and has invested over NPR 13 trillion in hydropower projects.
- Nepal exports up to 1,200 MW of electricity to India during the monsoon and earns over NPR 20 billion annually from exports.
- Challenges include seasonal production drops in winter, transmission delays, dependence on hydropower, and the need for storage and diversification to meet growing demand.
