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IPPAN th AGM

Nepal’s private hydropower sector says the country’s ambitious energy development roadmap could generate an economic contribution of Rs 10.05 trillion and create 750,000 jobs over the next decade if planned investments and production targets are achieved.

The projections were highlighted during the opening session of the 24th Annual General Meeting of the Independent Power Producers’ Association Nepal, where industry leaders reviewed the private sector’s achievements and future plans for Nepal’s energy sector.

According to IPPAN, Nepal’s installed electricity generation capacity has reached 4,300 MW, with the private sector contributing 3,463 MW. Prior to private sector participation 26 years ago, the country’s total power generation stood at just 252 MW.

The association said expanded private investment has helped increase electricity access from only 14 percent of the population to around 98 percent today.

Speaking at the event, IPPAN President Ganesh Karki said the government has set a target of generating 20,000 MW of electricity within the next 10 years and has committed to advancing projects through Power Purchase Agreements (PPAs).

He noted that policy reforms, including extending hydropower licenses to 50 years and opening electricity trading to the private sector, have boosted investor confidence.

IPPAN Senior Vice President Mohan Dangi called for the immediate implementation of a one-door system, stating that developers currently have to coordinate with eight ministries and 23 government departments to complete a single project.

The private sector is currently constructing 187 hydropower projects with a combined capacity of 5,792 MW, while projects exceeding 16,000 MW remain awaiting PPAs. In addition, 21 solar projects have already added 150 MW of electricity to the national grid.

IPPAN’s study shows that private energy projects have also contributed to infrastructure and social development by building 3,700 kilometers of roads, 450 kilometers of tunnels, 160 health centers, and 105 schools in remote regions. The sector currently contributes more than Rs 25 billion annually in government revenue.

Under the government’s Energy Development Roadmap 2081, Nepal aims to produce 28,500 MW of electricity by 2035. Industry leaders believe achieving this target could transform Nepal into a major regional energy exporter, while significantly boosting economic growth, employment, and foreign currency earnings through electricity exports to neighboring markets, including India and Bangladesh.