"Only clean energy can ensure Nepal's sustainable future"

KATHMANDU, SEPTEMBER 15: Experts have emphasized that there is no alternative to clean energy for achieving a sustainable future. On the second day of the Nepal Infrastructure Summit i.e. last Friday, organized by the Government of Nepal and the Confederation of Nepalese Industries, discussions during the "Energy and Water Resources" session focused on the critical role of clean energy.

Kumar Pandey, Chairman of National Hydropower, highlighted the significant progress in Nepal’s clean energy sector, driven by substantial private sector investments over the past 10–12 years. He noted that increased investment in energy production has resulted in greater consumption, with the private sector playing a pivotal role. However, he bemoaned that problems related to delays in passing the Electricity Act in the  Parliament, tree cutting and land acquisition are still inhibiting the growth of the energy sector. "Such challenges shall need to be addressed in order to attract investment in the sector substantial enough to help meet the ambitious target of the nation to generate 28,500 MW of electricity by 2035," he suggested. 

Stating that Nepal’s electricity system is primarily based on run-of-river hydropower projects, he also stressed the importance of prioritizing reservoir and semi-reservoir hydropower projects to ensure energy security. 

Speaking at the program, former Under-Secretary Keshav Dhoj Adhikari provided insight into Nepal’s global energy standing, noting that the country ranks 115th in electricity consumption. "Nepal’s total installed capacity has reached 3,062 MW, with 573.6 MW generated by the Nepal Electricity Authority and 58 MW from thermal power, making a total of 626 MW. The private sector is currently producing 2,436 MW."

 Chen Yong, President of Digital Smart PV at Huawei Technologies, discussed the global push towards reducing carbon emissions and the inevitable shift towards green energy. He highlighted Huawei’s investments in electric vehicles, charging stations, ICT technology, green power generation, energy internet, mobility electrification, and green ITC power infrastructure, asserting that green energy is the future.

 Yogjing Hong, Managing Director of Nepal Water and Energy Development Company, echoed this sentiment, emphasizing that Nepal has vast and abundant potential for hydropower development. He stated that clean energy is the future for Nepal’s energy sector.

Sujata Gupta, Energy Sector Director at the Asian Development Bank (ADB), spoke about the need for significant investment in Nepal’s transmission infrastructure. She mentioned that the private sector’s investment, that is currently focused only on production, shall be diverted to developing transmission infrastructure.

 According to her, the ADB currently holds a 40% share in Nepal’s transmission line development. Gupta expressed pride in ADB’s partnership with Nepal, stating that positive developments are underway, and transparency will help attract private sector investment. 

Ganesh Karki, President of the Independent Power Producers’ Association Nepal (IPPAN), expressed optimism that Nepal’s goal of producing 28,500 MW by 2035 is achievable. Nepal has already signed an agreement to export 10,000 MW to India over the next 10 years and is currently looking to trade electricity with Bangladesh as well.  In this context, Karki emphasized that achieving this goal will require an investment of NPR 4.6 trillion and that to help fulfil this requirement, the government shall facilitate the private sector for their active participation.

 During the program, Mark Tissot, Senior Investment Expert at GIZ, said that GIZ is working on hydropower and transmission line projects in collaboration with private companies to promote technological development in the energy sector.

Dr. Ram Prasad Dhital, Chairman of the Electricity Regulatory Commission, who chaired the session, stated that the government is committed to creating a competitive environment in the energy sector. He acknowledged the country’s limited human resources but emphasized that efforts are being made to address this. Dhital further noted that transmission lines are being developed as a business model, signaling a shift towards commercialization in the energy infrastructure.

 

 

 

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