Minister for Energy, Water Resources and Irrigation Deepak Khadka has said that it is possible to achieve the target to generate 28,500 MW electricity by 2035.

Addressing a press conference organised to make public ‘Energy Development Roadmap and Action Plan-2081’ approved by the Cabinet on December 31, 2024, at the ministry of Thursday, Minister Khadka said it would be possible to realise the electricity generating target citing that roadmap has been introduced with special plans and solution to the existing problems seen in the hydropower sector.

“The market for the sale of generated electricity is secured. With the assurance of market, investors, both domestic and foreign, will be interested to increase their investment,” he said.

Stating that there were problems in land acquisition, forest clearance and inter-ministerial coordination for the development of the hydropower sector, he said that the roadmap and action plan has been proposed a monitoring team representing the concerned ministries and departments to address the problems seen in advancing the project.

He said that all types of investment models have now been opened for investment in large and new projects.

Along with this, the implementation period of a 10-year action plan to increase Nepal’s electricity installed capacity, which is currently around 3,400 MW, to 28,500 MW by 2025-35, and transmission and consumption, has also begun.

The roadmap has paved the way for the government to advance projects, including domestic and external investments, and all forms of hydropower.

Minister Khadka said that the support from general people, political parties, private sector and others would be essential to realise and make the country prosperous through the development of hydropower sector.

Stating that around USD 46.5 billion (Rs. 6,231 billion) is estimated to be required for achieving the target of energy development by 2035, he asked the domestic and foreign investors and development partners to increase their investment in hydropower.

The roadmap has proposed to manage funds to the tune of USD 6 billion from the investment of the government of Nepal, USD 10 billion from domestic sources (private sector, banks and financial institutions), USD 8 billion from refinancing and reinvestment of Nepal Electricity Authority, USD 2 billion from climate financing and USD 12 billion from Non-Resident Nepalis and remittances sent by migrant workers.

It is estimated to manage USD 8.5 billion from foreign loan and assistance.

The roadmap and action plan set a target of exporting 15,000 MW of the electricity produced and consuming 13,500 MW within the country. It also includes plans to build the necessary transmission lines and substations for this.

It is stated that per capita electricity consumption will be increased to 1,500 units by 2035.

An agreement has been reached to export 10,000 megawatts of electricity to neighbouring India in the next 10 years, and in addition, a plan to export 5,000 megawatts of electricity to other neighbouring countries, including Bangladesh by 2035, has been mentioned in the roadmap, he said.

Secretary at the Ministry of Energy, Water Resources and Irrigation Suresh Acharya said that the roadmap has been introduced with consultation of concerned bodies, analysing the present scenario and the hydropower projects in pipeline.

“This is not ambition. But efforts are a must from all stakeholders to achieve the target. Currently, hydropower projects with a capacity of around 11,800 MW is in the construction phase and projects with capacity of around 12,900 MW are in the process of Power Purchase Agreement. So, the generation of 25,000 MW in next 12 years is not difficult for us,” he said.

The roadmap has proposed to involve the private sector in construction of transmission lines and electricity trade, he said.

Prabal Adhikari, senior energy expert at the Ministry of Energy, Water Resources and Irrigation, expressed his confidence that the roadmap will not only support energy development, but also support social and economic development of the country.

He said that large investments in hydropower and transmission lines will create a large number of employment opportunities and accelerate economic activities.

Ganesh Karki, president of the Independent Power Procedures’ Association Nepal (IPPAN), said that the private sector is more excited with the introduction of the energy roadmap by the government that the private sector had been demanding for a long time.

Source: Rising Nepal