Ganesh Karki, President of the Independent Power Producers’ Association of Nepal (IPPAN), has encouraged French investors to consider investing in Nepal’s hydropower sector.

Speaking at the France-Nepal Hydropower Investment Conference held in Paris, Karki invited investors to invest in Nepal with confidence, highlighting the potential of Nepal’s hydropower industry to meet the growing energy demand in South Asia.

Before 1999, Nepal’s total electricity generation capacity was just 250 megawatts. However, in the 25 years since the private sector’s involvement, Nepal has significantly expanded its capacity to 3,500 megawatts, with the private sector contributing 80 percent, or 2,800 megawatts.

Karki acknowledged France’s ongoing support and cooperation in Nepal’s energy sector, noting the countries’ collaboration in areas such as bilateral relations, financial instruments, technical assistance, and institutional development. He emphasized that these partnerships reflect the shared commitment between Nepal and France towards sustainable, inclusive, and climate-resilient energy development.

He also mentioned that France had provided financial assistance for the 216-megawatt Upper Trishuli-1 Hydropower Project, currently under construction on the Trishuli River. In collaboration with the International Finance Corporation (IFC), France contributed a loan of 453 million US dollars, which is expected to significantly bolster Nepal’s electricity supply.

Additionally, Karki highlighted the Hydro Nepal project, launched in 2025 through a partnership between the French Embassy, Nepal Electricity Authority, and Blue Water Intelligence. The project is contributing to the digitization of river basins and improving climate forecasting capabilities through AI-based tools.

Karki emphasized that, like the Hydro Nepal project, there are opportunities for collaboration in areas such as carbon trading, cross-border trade, and research. Nepal offers significant potential for both business-to-business and public-private partnerships, which can facilitate technology transfer, consultancy, project development, green financing, and innovation.

He suggested that French companies specializing in hydropower equipment, smart grid systems, and engineering services would be well-positioned to collaborate with Nepal’s growing energy market. Such partnerships, he added, would contribute to job creation, economic growth, and the transfer of cutting-edge technologies.

With an estimated investment potential of approximately 46 billion US dollars, Karki stated that this expanding market holds great opportunities for international investors. He assured that IPPAN would continue to support and promote further collaboration and investment in Nepal’s energy sector.

According to Karki, this approach opens up numerous opportunities, including the development of energy trade and joint investments, equity investments in existing hydropower projects, loans for hydropower development, technology transfer, capacity building, and joint research and development. It also provides avenues for businesses involved in hydropower equipment supply, smart grid modernization, hydrological forecasting, digitization of hydropower operations, consultancy services, project management, carbon trading, and energy trade and regional integration.

Karki concluded by urging support and cooperation to position Nepal as a leading energy supplier in the regional market, with an invitation to participate in the upcoming Power Summit 2025, scheduled for 17th and 18th September.

Source: Online Khabar