Nepal Targets 30,000 Megawatts of Power Capacity Within a Decade

Kathmandu. The government has set a target to reach an installed electricity capacity of 30,000 megawatts within the next decade. This provision was announced through a new policy on energy development and utilization in the national commitment paper unveiled on Tuesday.

Previously, the energy roadmap aimed for 28,500 megawatts by 2025, a target that has now been increased to 30,000 megawatts.

To achieve this goal, the government plans to amend laws related to land, forests, and the environment, alongside implementing policy reforms. To facilitate investment in large-scale projects, the government has also announced the provision of viability gap funding.

Under this arrangement, priority will be given to the construction of large reservoir and semi-reservoir projects such as Budhigandaki and Dudhkoshi.

To increase domestic consumption of generated electricity, the government has adopted a policy to attract large energy-intensive industries to the country.

The commitment paper states that industries such as steel, cement, herbal processing, data server stations, and chemical fertilizers will be prioritized. To ensure industries have easy access to electricity, the government will take responsibility for extending transmission lines directly to industrial premises.

Furthermore, legal frameworks will be made private-sector friendly to increase participation in electricity generation, storage, transmission, and distribution. The government plans to mobilize energy production and resources through a Public-Private Partnership (PPP) model.

Through energy diplomacy, bilateral and regional cooperation will be strengthened to facilitate energy trade with neighboring countries, India and Bangladesh. The policy mentions increasing state investment to develop Nepal as a clean energy export hub for South Asia.

Additionally, keeping future energy security in mind, the government is emphasizing new technologies alongside traditional hydropower. The action plan prioritizes the production of green hydrogen and the exploration of strategic metals like rare earth elements.