Nepal’s Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, has stirred the global community with a compelling plea for international investment in Nepal’s hydropower sector. This appeal aligns with the nation’s ambitious goal to generate 28,500 MW of electricity by 2035, a feat encapsulated within the newly approved ‘Energy Development Roadmap-2081’. Khadka presented this vision during a recent dialogue with key representatives from various donor agencies, seeking their support to transform Nepal into a regional energy hub and enhance both national and cross-border infrastructure.
Transforming Nepal into a Regional Energy Hub
Leveraging Abundant Water Resources
Discussions consistently highlighted Nepal’s immense reliance on its abundant water resources, which pose outstanding opportunities for investment in the energy sector. The Roadmap emphasizes energy security, sustainability, and inclusive economic growth, focusing significantly on developing cross-border transmission lines and expanding electricity generation and distribution. This robust plan not only aims to augment Nepal’s energy capabilities but also ambitiously puts the country on a path to become a crucial energy provider in the region.
The emphasis on sustainable development and energy security was a core theme of the dialogue, where both hydroelectricity generation and infrastructure development were closely examined. By increasing investment in these sectors, Nepal seeks to foster a more reliable and sustainable energy supply. Particularly, it is focused on constructing reservoir-based projects that will ensure a consistent energy supply irrespective of seasonal variations, thus reducing the dependency on rain-fed hydropower alone. These strategic projects are pivotal in guaranteeing energy availability throughout the year.
Crucial Role of International Collaborators
The commitment from international bodies was palpable during the discussion, as several globally influential institutions pledged their support. Esteemed organizations such as the World Bank, Asian Development Bank (ADB), Japan International Cooperation Agency (JICA), German Agency for International Cooperation (GIZ), United States Agency for International Development (USAID), and the United Nations Development Programme (UNDP) were present, exhibiting an unprecedented readiness to back Nepal’s hydropower ambitions.
Specific projects garnered special mention, including the Upper Arun Reservoir, supported by the World Bank, and the Dudhkoshi Reservoir, backed by the ADB. These reservoirs are not merely infrastructural additions but cornerstones of Nepal’s broader vision to secure a stable energy landscape. By partnering on these crucial projects, international collaborators signal a collective commitment to Nepal’s energy strategy, further enhancing confidence in achieving the ambitious 28,500 MW target by 2035. The global investment will not only facilitate these ventures but will also unlock secondary economic benefits as Nepal strengthens its position as a regional power leader.
Financial Estimates and Sector Confidence
Meeting the 2035 Energy Target
Achieving Nepal’s energy objectives by 2035 entails substantial financial investments, estimated to be around USD 46.5 billion. However, energy sector officials remain optimistic, bolstered by existing and pending power purchase agreements, indicating a feasible path toward this goal. The ambitious target of 28,500 MW, while demanding extensive resources and coordinated efforts, is within reach given the strategic planning and international support pledged thus far.
A crucial part of this strategy is the development of reservoir-based projects that ensure a steady supply of energy, unaffected by variable hydrological conditions. These reservoirs are essential for mitigating the challenges posed by Nepal’s mountainous terrain and fluctuating water availability. Additionally, by investing in both traditional and innovative energy solutions, Nepal aims to harness the full potential of its water resources sustainably. This comprehensive approach strengthens Nepal’s position to meet its goals and secures a reliable energy future for the nation and its neighbors.
Global Economic Benefits
Nepal’s Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, has captured global attention with a passionate call for international investment in Nepal’s hydropower sector. Aligned with the country’s bold ambition to generate 28,500 MW of electricity by 2035, this endeavor is detailed in the recently sanctioned ‘Energy Development Roadmap-2081’. In a recent discussion with pivotal representatives from numerous donor organizations, Khadka outlined this visionary plan, advocating for their assistance to establish Nepal as a key regional energy hub. This transformation would not only elevate the national energy infrastructure but also profoundly improve cross-border energy connections, fostering regional collaboration. Such significant advancements are expected to drive economic growth and energy security within Nepal and its neighboring countries, making Khadka’s call for investment a crucial step toward a mutually beneficial and sustainable energy future for South Asia.