IPPAN urges Indian investors to pour their bucks into Nepal's hydropower

KATHMANDU, MARCH 26: Ganesh Karki, President of the Independent Power Producers' Association, Nepal (IPPAN), has urged Indian investors to capitalize on Nepal’s vast energy potential by investing in its hydropower sector.

Speaking at the India-Nepal Energy Summit in New Delhi today, Karki outlined Nepal’s ambitious goal of generating 28,500 megawatts of electricity by 2035, requiring an estimated investment of $46.5 billion. He emphasized that this presents a lucrative opportunity for the investors of the southern neighbour, assuring them that the Nepalese government guarantees both investment security and returns.

He highlighted that investment opportunities extend beyond power generation to include consultancy services, machinery supply, and other related sectors. Noting the rapid expansion of Nepal’s private energy sector, he stated that although private companies began producing electricity only in 2000, they now contribute approximately 80 percent of Nepal’s total installed capacity of 3,500 megawatts, around 2,800 MW.

Currently, the two neighbouring exchange 1,000 megawatts of electricity, with a long-term agreement in place to raise this figure to 10,000 megawatts within the next decade. Karki noted that Indian companies are already engaged in projects producing 5,000 megawatts in Nepal, with several others awaiting investment.

He further expressed Nepal’s eagerness to collaborate with leading Indian business groups such as Adani Group, Tata Power, Jindal Power, GMR Group, SJVN Limited, and NHPC, emphasizing that Nepal’s rich hydropower resources can help meet the region’s growing energy demands.

In his presentation, IPPAN Vice President Anand Chaudhary stated that Nepal currently produces 3,500 megawatts of electricity, while projects totalling 4,000 megawatts are under construction. "Additionally, projects with a combined capacity of 4,100 megawatts have signed Power Purchase Agreements (PPA) and are awaiting financial arrangements. A further 20,000 megawatts of projects are in various stages of study, offering attractive investment prospects for Indian investors."

Chaudhary also provided details on three dozen large-scale hydropower projects in Nepal, owned by both the private and public sectors, underscoring their investment potential.

Chiranjivee Chataut, Joint Secretary at Nepal’s Ministry of Energy, Water Resources, and Irrigation, encouraged Indian investors to invest with confidence, highlighting Nepal’s investor-friendly policies, the operational 400 kV transmission line between Nepal and India, and two additional transmission lines under construction, ensuring robust infrastructure for electricity generation and trade.

He stressed that Nepal’s hydropower policies are designed to protect investors and invited major Indian companies to seize this opportunity.

The summit, held under the theme "Exploring Investment Opportunities in Hydropower and Renewable Energy," was jointly organized by the Embassy of Nepal in India and the Indian Federation of Green Energy (IFGE), with institutional participation from IPPAN.