Over half of licensed hydropower projects in Nepal show weak progress
Summary
More than half of hydropower projects in Nepal with production licenses show weak progress due to financial and regulatory challenges, with only a small fraction reaching over 80% completion.
Key Points
- At least 178 out of 274 hydropower projects in Nepal have physical progress below 25 percent.
- Several large hydropower projects like Lower Manang Marsyangdi and Tila-1/-2 have not achieved financial closure despite licensing and PPAs.
- The Department of Electricity Development monitors project progress via a License Performance Dashboard updated monthly.
- Delays are caused by management capacity issues, transmission line problems, legal challenges, land acquisition, and environmental restrictions.
