Balen Shah’s government at 100 days: Energy ambition meets capital constraints

Summary

Prime Minister Balendra Shah's government aims to transform Nepal's energy sector by increasing domestic electricity use, improving infrastructure, and attracting investment in hydropower and transmission projects.

Key Points
  • Prime Minister Balendra Shah's government has prioritized energy as central to Nepal's economic transformation, focusing on expanded electricity use and exports.
  • The government has advanced stalled transmission projects and aims to diversify generation with more storage hydropower to balance seasonal supply.
  • More than Rs. 85 billion has been allocated to electricity infrastructure with plans to open electricity trading to private sector participation.
  • Despite ambitious policies, challenges remain in attracting large-scale investment, improving regulatory certainty, and linking electricity expansion to industrial growth.
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