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  Micro and Small Hydropower Need Professional Oversight, Financial Clarity: Minister Khadka

Minister for Energy, Water Resources and Irrigation Deepak Khadka has said that commercial management and financial transparency are essential to ensure the long-term sustainability of micro and small hydropower.

Inaugurating the eighth annual general meeting of the National Micro and Small Hydropower Consumers Society of Nepal held in Lalitpur today, Minister Khadka stated that providing electricity to remote areas has made a great contribution to social and economic transformation, and emphasized that the work should be done in a way that would create employment and be memorable for the people.

“The work of providing electricity to every nook and corner of the country, in difficult and remote areas, is an extraordinary achievement. The role and activities played by this society for this are commendable. Currently, more than 40 megawatts of electricity is being generated from micro and small hydropower projects across the country with the involvement of about two thousand organizations and individuals. This is a commendable work,” he said.

Minister Khadka said that the people’s efforts to remove darkness by managing electricity with their own participation were commendable, adding that the government has been continuously supporting them by respecting the contribution of consumers and society. He stressed the need to further promote micro and small hydropower in a more commercial manner.

“Distributing loans to small and micro hydropower plants as grants creates problems in financial discipline, so it is necessary to move the institution forward on a commercial model. Due to policy reforms in the energy sector in recent years, the government is moving towards a sustainable and transparent system. The government is working aggressively to maintain good governance,” said Minister Khadka.

Recalling that the government is prioritizing the campaign to extend the national transmission grid to every local level, Minister Khadka informed that a long-term target of generating 28,500 megawatts of electricity has been set and the government is moving rapidly towards that goal.

Suk Bahadur Budha Magar, Chairman of Parivartan Rural Municipality, Rolpa, said that there is a problem in formulating laws for the local level’s sole authority as the federal government has not made many laws related to federalism, and that there is a need to reach a conclusion through discussions and debates on the context of micro and small hydropower at the local level. He said that there is a huge investment by consumers and the state in micro and small hydropower, and the local level will pay attention to its sustainable management.

Dilli Ghimire, advisor to the National Micro and Small Hydropower Consumers Society Nepal, said that a collective voice and effort are needed to promote the micro hydropower sector. He stressed on its conservation and utilization, saying that more than 60 percent of investment in micro hydropower is from the community.

Narayan Gyawali, President of the National Federation of Community Electricity Consumers Nepal, said that micro-hydropower has been successfully operated in villages and has reached every household with electricity, and that 98 percent of households have been electrified due to everyone’s contribution. He stressed that the government should address the issue through policy to protect and sustain the small hydropower plants that were operating during the difficult times.

Kala Timalsina, chairperson of the Women’s Network for Energy and Environment, said there is a need for continuous debate, discussion and advocacy on the issues of micro-hydropower projects and consumers. She stressed the need for representation of women who have contributed to micro-hydropower projects while taking care of children in the operation and management committee of the consumer organization.

Presenting the annual report of the organization, Narayan Dhawaj Khadka, President of the National Micro and Small Hydropower Consumers Society Nepal, informed about the programs to be run for the benefit of micro and small hydropower consumer organizations in the coming year. Stating that 70 percent of the electricity generated by micro hydropower organizations across the country is being wasted, he said that necessary support and coordination will be provided to connect the wasted electricity to the national system of the Electricity Authority for proper utilization. He said that the organization has an action plan to take appropriate initiatives for institutional development of consumer organizations and training and capacity development to prepare skilled technicians, and to further strengthen its coordinating role with development partner organizations that have been supporting micro hydropower so far.

Man Bahadur Shahi, a member of the Alternative Energy Promotion Center, said that he has worked on the development and promotion of local entrepreneurs and that micro and small hydropower consumers are an appropriate medium for alternative energy to coordinate at the local level.

Source: LaganiNews

[ 4 September, 2025 / nepalenergyforum.com ]   
 

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