Laying the foundation for the construction of a hydropower project here on Tuesday, Basnet said that the government was preparing to develop a comprehensive energy development programme supported by a concrete action plan to generate 30,000 MW of power by 2035.
Updated On – 09:39 PM, Wed – 13 September 23
Laying the foundation for the construction of a hydropower project here on Tuesday, Basnet said that the government was preparing to develop a comprehensive energy development programme supported by a concrete action plan to generate 30,000 MW of power by 2035.
Kathmandu: Nepal aims to develop 30,000 MW of electricity within the next 12 years as the market for the Himalayan nation’s hydropower is growing in India and Bangladesh, the Minister for Energy, Water Resources and Irrigation, Shakti Bahadur Basnet has said.
Laying the foundation for the construction of a hydropower project here on Tuesday, Basnet said that the government was preparing to develop a comprehensive energy development programme supported by a concrete action plan to generate 30,000 MW of power by 2035.
“Our target under this programme is to produce electricity in the range of 25,000 MW-30,000 MW by 2035,” Basnet said while performing the groundbreaking ceremony for the 216 MW Upper Trishuli-1 hydropower project.
Pointing out that Nepal’s domestic demand for electricity is expected to reach 15,000 MW in the next 12 years, the minister said that besides developing hydropower projects, the roadmap will also involve constructing required transmission and distribution facilities and institutional reforms.
According to Basnet, Nepal’s existing hydropower generation capacity has reached around 2,800 MW.
“Several projects with a combined capacity of around 5000 MW are under construction,” he said.
In August, an understanding was reached in principle for the supply of electricity from Nepal to Bangladesh via an Indian transmission line, according to officials at the Nepal Electricity Authority (NEA), and a formal agreement between the three nations will be signed soon.
Basnet praised South Korea for investing in the hydropower project here and called it a significant, high-quality investment for Nepal’s hydropower sector.
Nepal Water and Energy Development Company, a joint venture between Nepal and South Korea, is developing the project located at Dhunche in Rasuwa district, 75 km north of Kathmandu.
In 2022, the company completed its financial closure for the project, where it plans to invest around USD 647.4 million to develop the medium-sized hydroelectric project.
South Korean companies have a 75 per cent stake in the company’s equity, while the International Finance Corporation (IFC) has a 15 per cent stake, and a Nepali local partner has a 10 per cent stake, according to officials.
Speaking at the function, South Korean Ambassador to Nepal Park Tae-Young said that Upper Trishuli-1 is the third hydropower project in Nepal that got financing from South Korea. Chameliya and Modi Khola are the other two projects completed earlier with South Korean funding.
Construction of Upper Trishuli-1 is expected to be completed in the next five years. The run-of-river type project, built under the Build, Own, Operate and Transfer modality, will come under the ownership of the Nepal government after 30 years.
