Nepali Political Parties Prioritize Hydropower and Energy Sector in Election Manifestos

Kathmandu. Major political parties, along with smaller ones, have unveiled their manifestos under various banners for the upcoming House of Representatives election scheduled for Falgun 21. They have brought forth manifestos prioritizing the nation's economy, health, education, employment, and the energy sector.

However, in past elections, political parties have had a tendency to present popular manifestos with appealing slogans but fail to implement them after coming to power. There is a tradition of bringing ambitious and popular manifestos during election time but neglecting their implementation once they secure a position in the government through the elections. Nevertheless, political parties in elections, from developed nations to smaller countries, present their election manifestos.

In line with this tradition, major political parties in Nepal—Nepali Congress, CPN-UML, CPN (Maoist Centre), and Rastriya Swatantra Party, among others—have released their manifestos for the upcoming elections. The four major political parties have placed the energy and hydropower sector at the highest priority as the main basis for economic development and prosperity in their manifestos.

Despite the bitterness and differences on other issues, there is a visible similarity among the parties regarding the development of the energy sector, electricity trade, and increasing consumption. The manifestos indicate a national consensus among all political parties for the development of Nepal's energy sector. The energy development goals put forth by the parties appear to be universally accepted in the energy roadmap previously put forward by the former KP Sharma Oli government.

The government has set a target to generate 28,500 MW of electricity in Nepal by 2035 through the energy roadmap. This target has been fully accepted by the election manifestos of UML, Congress, RASP, CPN (Maoist Centre), and Ujyalo Nepal.

UML and RASP Share the Same Voice: 750 Units Per Capita Consumption in 5 Years

The targets and figures of Nepali Congress, CPN-UML, and CPN (Maoist Centre) are almost identical in the energy sector, considered the engine of economic growth. UML and RASP have adopted the same slogan regarding the size of the economy in their manifestos.

They have mentioned building an economy of 100 Kharba (10 trillion) in five years. Accordingly, they have kept electricity generation and consumption figures the same.

Similarly, the Congress has set a target to increase the country's total installed electricity capacity to 14,000 MW and raise per capita electricity consumption to 750 units within the next 5 years.

UML has presented exactly the same figures, announcing a target of 14,000 MW installed capacity and 750 kilowatt-hours (units) per capita consumption in 5 years.

However, CPN (Maoist Centre) has set a target to add 10,000 MW in the next 5 years, bringing the national system capacity to 15,000 MW, and reaching 750 units of per capita consumption.

Electricity Purchase Agreements (PPA) and the breaking of Nepal Electricity Authority's monopoly in electricity trade also show consensus among major parties.

Likewise, Kulman Ghising-led Ujyalo Nepal Party has set a target of generating 12,000 MW of hydropower by 2030 and 25,000 MW by 2035 in the energy sector. The commitment letter mentions increasing export revenue to $5 billion annually by boosting exports to India, Bangladesh, and China.

Hydropower, medicinal herbs, cement, tourism, and IT have been declared priority sectors. Plans have been publicized to invest in education, health, and infrastructure by establishing the '1,000 Share Campaign' (providing at least 1,000 shares of hydropower to every family), 'People's Hydropower Fund,' and 'National Prosperity Fund.'

Private Sector Involvement in Electricity Trade and 'Take or Pay'

Major parties also agree on breaking the monopoly of the Nepal Electricity Authority in Power Purchase Agreements (PPA) and electricity trade.

Both Nepali Congress and UML have clarified their intention to continue electricity purchase based on the 'Take or Pay' principle, considering domestic demand and international market demand for electricity purchase and sale.

CPN (Maoist Centre) has committed to opening PPAs for new projects and arranging provisions for private sector companies to enter into such agreements.

Both UML and Congress have made a common commitment to involve the private sector in electricity trade and bring a new Electricity Act.

All parties have emphasized domestic consumption before electricity export. Key highlights of the manifestos include replacing gas stoves with electric stoves (induction), promoting electric vehicles instead of petroleum-fueled vehicles, and reducing the trade deficit by maintaining low electricity rates for agriculture and industry.

However, RASP has presented a different yet innovative perspective on this. While the three major parties focus on large figures of megawatts, RASP views the energy sector by linking it with technology, green economy, and innovation.

RASP has linked electricity generation with the establishment of green data centers, the operation of artificial intelligence, and the digital economy. Issuing 'Green Bonds' to mobilize capital and prioritizing electric vehicles to achieve zero carbon emissions have been made the main pillars of RASP's manifesto.

Focus on Reservoir Projects and Inter-Country Transmission Lines

All parties have prioritized reservoir-based projects to tackle the winter electricity crisis. Congress and UML have promised to move forward with the construction of reservoir projects like Budhigandaki (1200 MW) and Dudhkoshi (635 MW) and bring the Pancheshwar Multipurpose Project to fruition.

Similarly, completing the construction of inter-country transmission lines (Inaruwa–Purnia, Dodhara–Bareilly, Kerung–Chilime, etc.) to export surplus electricity to India and Bangladesh has become a common agenda for the parties. UML has even adopted the slogan of making Nepal the clean energy export hub of South Asia.

Domestic Consumption and Petroleum Substitution

All parties have emphasized domestic consumption before electricity export. Key attractions in the manifestos include replacing gas stoves with electric stoves (induction), promoting electric vehicles instead of petroleum-fueled vehicles, and reducing the trade deficit by maintaining low electricity rates for agriculture and industry.

Congress has put forward a policy of increasing consumption and reducing tariffs, and it also mentioned providing subsidized electric stoves to the poor.

For the election on Falgun 21, political parties have presented the energy and hydropower sector not just as a matter of assurance but based on facts and figures, aligning with the government's long-term energy roadmap.

It appears that a clear and strong national consensus has been built across the entire political spectrum that 'hydropower and clean energy alone' is the most reliable option for Nepal's economic development, reduction of trade deficit, and prosperity.