Kathmandu – Nepal's energy sector, a cornerstone of the nation's economic development, witnessed significant milestones this year, with notable progress in electricity production, export, and infrastructure development. The implementation of the ambitious "Energy Roadmap," targeting 28,500 MW of electricity production by 2035, has marked a crucial step toward the nation's sustainable energy goals.
For the first time, Nepal successfully exported electricity to Bangladesh. This historic move saw 40 MW of power transmitted to Bangladesh via the Indian grid, symbolizing growing regional energy cooperation. The achievement has expanded the scope of cross-border energy trade, with Nepal selling electricity in U.S. dollars for the first time.
Despite these strides, some flagship projects, including Budhi Gandaki, Nalgad, Upper Arun, and Dudhkoshi, remain stalled due to implementation delays. However, progress has been noted in resolving long-standing disputes over tariffs for dedicated and trunk-line electricity transmission, with a report from former Supreme Court Justice Girish Chandra Lal offering actionable recommendations.
Key Achievements in Infrastructure Development
The year saw the successful completion of the Trishuli 3B hub substation and the Chilime 220 kV transmission line, enabling the integration of electricity from the Rasuwagadhi and Sanjen projects into the national grid. Reconstruction efforts also restored operations at the flood-damaged Upper Tamakoshi Hydropower Project and other affected facilities.
Additionally, the Bheri Babai Diversion Project made substantial progress, while the completion of tunnel construction for the Sunkoshi Marin Diversion Project is a step forward despite slow progress at the dam and powerhouse sites.
People-Centric Energy Initiatives
The People’s Hydropower Program advanced with policies providing concessional shares worth NPR 200,000–500,000 to underprivileged citizens. Electrification expanded to Susta across the Narayani River through an 11 kV transmission line. The government also introduced streamlined policies for solar project permits, requiring only local government recommendations.
Future Energy Prospects
Strengthening regional cooperation, Nepal and India agreed to construct high-capacity transmission lines, including the Nijgadh-Harnaiah-Motihari 400 kV line and Kohalpur-Lucknow 400 kV line, to boost cross-border electricity trade. Meanwhile, the Rani-Jamara-Kuleriya Irrigation Project added irrigation facilities to 14,300 hectares while generating 4.71 MW of electricity.
Efforts to enhance private-sector participation in energy exports have also gained momentum, with new policies under parliamentary review. The government is prioritizing hydropower export agreements to meet increasing regional demand.
Significance for Nepal's Energy Future
The year underscored Nepal’s potential as a regional energy hub, with the government and private sector aligning efforts to enhance production and export capacities. The successful integration of hydropower into international markets, coupled with ongoing infrastructure development, highlights a promising future for the nation's energy sector.
As the government continues to address delays in large-scale projects and streamline energy policies, 2082 is poised to be another transformative year for Nepal's energy sector.
Ecosphere News remains committed to bringing updates on Nepal’s progress in energy, environment, and sustainable development.
