Nepal unveils ambitious plan for 30,000MW of hydropower by 2035
POWER & RENEWABLE ENERGY

Nepal unveils ambitious plan for 30,000MW of hydropower by 2035

Nepal has unveiled ambitious plans to generate 30,000 megawatts (MW) of electricity by the year 2035, leveraging the expanding market for Nepalese hydropower in India and Bangladesh.

During a ceremony marking the commencement of the 216MW Upper Trishuli-1 Hydroelectric Project's construction, Shakti Bahadur Basnet, the Minister for Energy, Water Resources, and Irrigation, revealed that the government is poised to introduce a comprehensive energy development program with a detailed action plan for the next 12 years.

Minister Basnet elaborated, "Our objective within this program is to achieve an electricity output ranging from 25,000MW to 30,000MW by 2035." He also mentioned that Nepal's domestic electricity demand is projected to reach 15,000MW over the next 12 years. Alongside hydropower project expansion, the roadmap will encompass the development of essential transmission and distribution infrastructure, as well as institutional reforms.

Nepal's existing electricity generation capacity stands at approximately 2,800MW, with numerous projects totalling around 5,000MW currently under construction, as noted by the minister. In light of India's recent announcement to purchase 10,000MW over a decade, Minister Basnet emphasised Nepal's desire for increased foreign investments in the sector.

Minister Basnet, who inaugurated the project's development remotely from Kathmandu, commended South Korean investment in the 216MW Upper Trishuli-1 Hydroelectric Project, describing it as a significant and high-quality investment in Nepal's hydropower sector.

The project, located in Dhunche, Rasuwa district, 70 kilometres north of Kathmandu, is being developed by the Nepal Water and Energy Development Company, a joint venture between Nepal and South Korea. In 2022, the company successfully completed its financial closure for the mega hydroelectric project, earmarking up to $647.4 million for its development.

South Korean firms hold a 75% equity stake in the joint venture, while the International Finance Corporation (IFC) possesses a 15% stake, and a local Nepalese partner holds the remaining 10% stake. This joint venture was the first private company with which the Nepalese energy ministry signed a project development agreement in December 2016. It took 12 years from the entry of South Korean renewable energy firm Korean South East Co in 2011 to initiate actual construction.

Speaking at the event, South Korean Ambassador to Nepal Park Tae-Young highlighted that Upper Trishuli-1 marks the third hydropower project in Nepal funded by South Korea, following the completion of Chameliya and Modi Khola with South Korean financing.

The construction of Upper Trishuli-1, a run-of-river type project operating under the Build, Own, Operate, and Transfer model, is expected to conclude within the next five years. After a 30-year period, the project will come under the ownership of the Nepalese government.

Nepal has unveiled ambitious plans to generate 30,000 megawatts (MW) of electricity by the year 2035, leveraging the expanding market for Nepalese hydropower in India and Bangladesh. During a ceremony marking the commencement of the 216MW Upper Trishuli-1 Hydroelectric Project's construction, Shakti Bahadur Basnet, the Minister for Energy, Water Resources, and Irrigation, revealed that the government is poised to introduce a comprehensive energy development program with a detailed action plan for the next 12 years. Minister Basnet elaborated, Our objective within this program is to achieve an electricity output ranging from 25,000MW to 30,000MW by 2035. He also mentioned that Nepal's domestic electricity demand is projected to reach 15,000MW over the next 12 years. Alongside hydropower project expansion, the roadmap will encompass the development of essential transmission and distribution infrastructure, as well as institutional reforms. Nepal's existing electricity generation capacity stands at approximately 2,800MW, with numerous projects totalling around 5,000MW currently under construction, as noted by the minister. In light of India's recent announcement to purchase 10,000MW over a decade, Minister Basnet emphasised Nepal's desire for increased foreign investments in the sector. Minister Basnet, who inaugurated the project's development remotely from Kathmandu, commended South Korean investment in the 216MW Upper Trishuli-1 Hydroelectric Project, describing it as a significant and high-quality investment in Nepal's hydropower sector. The project, located in Dhunche, Rasuwa district, 70 kilometres north of Kathmandu, is being developed by the Nepal Water and Energy Development Company, a joint venture between Nepal and South Korea. In 2022, the company successfully completed its financial closure for the mega hydroelectric project, earmarking up to $647.4 million for its development. South Korean firms hold a 75% equity stake in the joint venture, while the International Finance Corporation (IFC) possesses a 15% stake, and a local Nepalese partner holds the remaining 10% stake. This joint venture was the first private company with which the Nepalese energy ministry signed a project development agreement in December 2016. It took 12 years from the entry of South Korean renewable energy firm Korean South East Co in 2011 to initiate actual construction. Speaking at the event, South Korean Ambassador to Nepal Park Tae-Young highlighted that Upper Trishuli-1 marks the third hydropower project in Nepal funded by South Korea, following the completion of Chameliya and Modi Khola with South Korean financing. The construction of Upper Trishuli-1, a run-of-river type project operating under the Build, Own, Operate, and Transfer model, is expected to conclude within the next five years. After a 30-year period, the project will come under the ownership of the Nepalese government.

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