- Solar energy production centers are being constructed in Lamjung, Nawalparasi, and Surkhet.

- This project will have grant assistance from the German government and investment from the Nepal Electricity Authority.

- The development of solar energy is expected to have a positive impact on Nepal’s energy sector.

With support from the German government, 9.4 megawatts of solar energy will be generated in Nepal. To achieve this, the construction of three solar power production centers has been launched simultaneously. According to the Nepal Electricity Authority, these centers will be established in Chiti Barbot Shera of Besisahar Municipality–11 in Lamjung, Surajpura in Nawalparasi Gandak of Lumbini, and Jhupra in Surkhet of Karnali Province. A feasibility study is also underway for solar energy production in Markhu of Kulekhani.

According to the Nepal Electricity Authority, ground-mounted, grid-connected solar energy production centers with peak capacities of 1.6 megawatts in Lamjung, 6.8 megawatts in Gandak Surajpura, and 2 megawatts in Jhupra, Surkhet, are being developed. In Lamjung, solar power will be generated by utilizing unused land at the 70-megawatt Middle Marsyangdi Hydropower Project site. The electricity generated will be connected to the substation located in Udipur, Besisahar Municipality–1, across from the project site.

Last Friday, Nepal Electricity Authority’s Managing Director Hitendra Dev Shakya, Head of Development Cooperation at the German Embassy in Kathmandu Dr. Benjamin Seidel, Mayor of Besisahar Municipality Guman Singh Aryal, and Michael Sumser, Director of the KfW Office for Bangladesh and Nepal, among others, jointly laid the foundation stone for the “Ground-Mounted Grid-Connected Solar PV Project.” The project is being implemented with grant assistance from the German government through the German Development Bank (KfW).

The Middle Marsyangdi Hydropower Project was constructed about a decade and a half ago with 80 percent investment from the German donor agency KfW and 20 percent from the Nepal Electricity Authority. Now, a solar energy production center is being built with grant assistance from KfW.

The project will receive technical assistance from the German consulting firm GOPA Tech. The construction responsibility has been taken on by the Indian company Progel Green Energy Limited. The company will handle the complete design of the project, supply and installation of equipment, quality assurance, and construction of the related transmission lines. In addition, the construction company will also be responsible for operating and maintaining the solar centers for five years, along with a two-year defect liability period.

Project Chief Prakash Raut stated that the contract for this project was signed on February 6, 2025 (2081 Magh 24), came into effect on June 13, 2025 (2082 Jestha 13), and is scheduled to be completed by February 13, 2026 (2082 Falgun 1). He mentioned that 9.4 megawatts of electricity will be generated by Falgun 1 of next year.

The study for Markhu in Kulekhani is still ongoing. According to him, the study is being carried out with the aim of generating 3 to 4 megawatts of electricity. It is estimated that all four solar energy centers will receive a grant investment of 800,000 euros from the German government, while Nepal will contribute around 30 percent, or approximately 300,000 euros.

Dr. Benjamin, Head of Development Cooperation at the German Embassy in Kathmandu, expressed his happiness at being able to partner in Nepal’s energy development. Michael, Director of the KfW Office for Bangladesh and Nepal, emphasized that the development of solar energy will further contribute to Nepal’s progress and that completing the project within the scheduled timeframe is not optional.

Besisahar Municipality Mayor Guman Singh Aryal stated that placing more emphasis on alternative energy rather than hydropower projects can help reduce potential damage. Nepal Electricity Authority Managing Director Shakya mentioned that this project will ensure the supply of clean energy, promoting environmentally friendly and renewable energy. He also expressed gratitude to the German government for its grant assistance.

Source: Kantipur