Kathmandu, August 8, 2025
Nepal’s energy sector has reached a significant milestone with the financial closure of the 341 MW Budhi Gandaki Peaking Hydropower Project, marking one of the largest financial commitments in the nation’s hydropower development history.
The project is being developed by Times Energy Pvt. Ltd., a subsidiary of Sahas Urja Ltd., and is expected to play a crucial role in strengthening Nepal’s energy security, particularly in peak demand management and renewable energy integration.
The total project cost stands at Rs. 70 Arba (NPR 70 billion). Of this, a staggering Rs. 52.5 Arba has been secured through debt financing from a consortium of 10 leading commercial banks in Nepal. The remaining Rs. 17.5 Arba will be financed through equity investment, reflecting strong confidence in Nepal’s hydropower potential and the project’s viability.
This financial closure marks a major breakthrough not just for the project developers but also for Nepal’s long-term energy planning. As the country aims to harness its vast hydropower resources and transition toward cleaner energy, large-scale projects like Budhi Gandaki are expected to contribute significantly to domestic supply, energy trade in South Asia, and climate commitments.
Industry observers hail this achievement as a testament to growing private sector leadership and maturing financial mechanisms within Nepal's power sector.
Environmental Significance and Outlook
As a peaking run-of-river project, Budhi Gandaki is designed to generate and supply electricity during high-demand periods without the extensive environmental and social impacts associated with large reservoir dams. Once operational, it will not only support grid stability but also reduce the need for fossil fuel-based alternatives during peak hours.
With this step forward, Nepal continues to position itself as a regional energy hub, committed to sustainable development, climate resilience, and low-carbon growth.
