Kathmandu, Jan 4: Investment of Rs 6.5 trillion is needed for producing 28,500 megawatts of electricity as per the government’s target. Of this investment, Rs 4 trillion would remain within the country.
This information was shared during the funding management agreement signing ceremony of the 49.95 megawatts Danakhola Hydropower Project promoted by the Lalupate Hydropower Company here on Friday. The Project is being constructed at Nasong Rural Municipality-2 in Manang district.
Addressing the programme, Minister for Energy, Water Resources and Irrigation Deepak Khadka said that the government is working towards the development of the energy sector through private sector participation.
President of the Independent Power Producers’ Association, Nepal (IPPAN), Ganesh Karki, said that large investment in the power sector will have a positive impact on the national economy.
He said Rs 4 trillion would have to be invested within the next 10 years for the purchase of construction materials like cement, iron rods and others required for building hydropower infrastructure and for the employment in this sector. This amount of expenditure would contribute to boosting up the national economy.
Karki argued that the long-term inter-country power trade agreement reached with India for exporting 10 thousand megawatts power and the agreement for the export of 40 megawatts power to Bangladesh were a milestone in Nepal’s power trade sector. A plan for exporting additional 15 thousand megawatts power was introduced few days back, he recalled.
The roadmap unveiled recently for producing 28,500 megawatts power in the country in the next 10 years indicates to a bright future for the country’s energy sector, he added. The Sanima Bank is the main investor in the Danakhola Hydropower Project which is set to be completed within the third week of October in 2028.
Chief Executive Officer of Sanima Bank, Nischal Raj Pandey and Chairman of Lalupate Hydropower Company, Mohan Kumar Dangi, signed the funding management agreement at the project site on Friday.
Chairman Dangi said that the project is being constructed at an investment of Rs 9.96 billion.
Currently, Nepal’s hydroelectricity production is around 2,800 MW, with the private sector contributing 2,100 MW.
Presently, the private sector has undertaken the development of over 169 hydropower projects, with 91 of them being listed on the Nepal Stock Exchange. These projects have garnered investment from more than four million individuals.
Additionally, hydroelectric projects with a combined capacity of 3,200 megawatts are currently under construction, and projects totaling 3,500 megawatts are in the process of financial closure. Furthermore, projects with a cumulative capacity of 12,000 megawatts are awaiting a Power Purchase Agreement (PPA) with the government, and the private sector is also studying the projects with a combined capacity of 12,000 MW.
A study by the Water and Energy Commission shows that Nepal has the potential to generate 120,000 MW of hydroelectricity. Likewise, research also shows Nepal can generate 30,000 megawatts of solar power. Other multiple studies also found that Nepal can achieve a maximum electricity production of over 200,000 MW during the rainy seasons.
