Minister urges foreign donors to invest in hydropower

KATHMANDU, JANUARY 21 : Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, has called on international donor agencies to increase investments in Nepal's hydropower sector. The Minister held discussions with representatives of donor agencies following a Cabinet meeting on December 31, 2024, which approved the 'Energy Development Roadmap-2024', setting an ambitious target of generating 28,500 megawatts of electricity by 2035.

Minister Khadka expressed gratitude for the continued support of donor agencies in Nepal’s energy sector and emphasized the need for further collaboration. He highlighted that the roadmap aims to foster economic prosperity by transforming Nepal into a regional energy hub and enhancing both national and cross-border energy infrastructure.

“This roadmap prioritizes energy security, sustainable development, and inclusive economic growth. It specifically focuses on cross-border transmission lines alongside production,” Minister Khadka stated.

He underscored the importance of timely completion of major hydropower projects, including the Upper Arun Hydroelectric Project, supported by the World Bank, and the Dudhkoshi Hydroelectric Project, funded by the Asian Development Bank (ADB).

Call for Collaboration

Minister Khadka urged development partners, international diplomatic missions, and organizations to actively support the implementation of the roadmap, which he described as a cornerstone of Nepal’s economic development.

Madhu Prasad Bhetuwal, Secretary at the Water and Energy Commission Secretariat, stressed the critical need for donor cooperation to achieve the roadmap’s goals. He acknowledged the challenges in power production, transmission, and distribution, calling for collective efforts to address them.

Strategic Investment Needs

According to Senior Energy Expert Prabal Adhikari, the roadmap requires an estimated investment of USD 46.5 billion. He expressed confidence in achieving the government’s power generation targets, noting that power purchase agreements (PPAs) for 11,161 MW have already been signed, with agreements for an additional 12,968 MW in progress.

Nabin Raj Singh, Director General of the Department of Electricity Development, highlighted the importance of substantial financial resources and multi-stakeholder cooperation to implement the roadmap effectively.

Support from Stakeholders

Nepal Electricity Authority (NEA) Managing Director, Kul Man Ghising, emphasized NEA's focus on reservoir-based projects to meet the roadmap’s goals and expressed appreciation for donor agencies' contributions to Nepal's power sector.

Nawaraj Dhakal, Executive Director of the Alternative Energy Promotion Center, confirmed that the center will prioritize programs aligned with the roadmap in the coming years.

Ganesh Karki, President of the Independent Power Producers Association of Nepal (IPPAN), assured full support from the private sector, describing the roadmap as a landmark initiative for Nepal’s energy development.

International Backing

ADB Country Director for Nepal, Arnaud Caichois, reiterated donor agencies’ long-standing support for Nepal’s energy sector. He pledged continued collaboration to help achieve the roadmap’s targets, adding that such programs have the potential to bolster the economies of South Asian countries.

Representatives from the World Bank, Japan International Cooperation Agency (JICA), German Federal Enterprise for International Cooperation (GIZ), US Agency for International Development (USAID), United Nations Development Programme (UNDP), Norwegian Embassy, and other donor agencies also attended the meeting, committing their support to Nepal’s energy ambitions.