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Ganesh Karki, President of the Independent Power Producers’ Association, Nepal (IPPAN), has stated that although Sudurpashchim Province holds immense potential for hydropower generation, project implementation has been facing challenges due to lack of infrastructure, policy complexities, and legal barriers related to forests.

At an interaction program on the prospects and challenges of hydropower project development in Sudurpashchim Province, President Karki highlighted the region’s potential for electricity generation. Describing the energy sector as a foundation for the country’s prosperity, he emphasized the need to prioritize energy development over other sectors. He noted that although the hydropower sector has been included in the government’s policy priorities, its effective implementation remains a challenge.

According to President Karki, the private sector contributes around 85 percent to electricity generation in Nepal. He informed that projects with a total capacity of about 12,500 megawatts are currently in operation, while projects with a capacity of around 3,000 megawatts have already secured Power Purchase Agreements (PPAs). Additionally, projects with a combined capacity of approximately 21,000 megawatts have obtained licenses and are in the study and construction phase.

Highlighting that Sudurpashchim Province alone holds more than 20 percent of Nepal’s hydropower potential, President Karki said it would be geographically easier to export electricity generated there to India. “There is a huge potential to expand energy trade with neighboring countries,” he said.

However, he noted that the lack of basic infrastructure such as roads is delaying project construction. “Road networks in Sudurpashchim are still insufficient, which has increased both the cost and time required for project development,” he added.

President Karki also pointed out that legal provisions related to forest areas and national parks are another major obstacle in hydropower development. He said restrictions on building projects within protected areas have prevented several promising projects from moving forward.

He urged the government to promptly implement its manifesto and energy policies, and called for a more investment-friendly environment for the private sector. “If the government facilitates the process, the private sector is ready for further investment,” he said. He also stressed the need to expand domestic energy consumption and build transmission lines on time to enable electricity export.

“If generated electricity cannot be transmitted, it creates problems in sales,” Karki said. Emphasizing the need to reduce dependence on petroleum products and gas, he said increasing both production and use of electricity is essential, and added that hydropower remains the key long-term solution to the current energy crisis.