Domestic capital for hydropower projects

Kathmandu, May 2: The government plans to mobilize domestic capital for the development of hydropower projects.

Under the “People’s Hydropower Programme,” self-generated capital will be mobilised for the construction of hydropower projects, while efforts will be made to channelise remittances from Nepali citizens working abroad into these projects, reads the government’s annual policy and programmes for the new fiscal year 2025/26 presented today.

As per the “Electricity Consumption Increase and Mineral Fuel Reduction Action Plan, 2080 B.S.”, use of electric appliances will be promoted across households, agriculture, industry, commerce, tourism, and transportation sectors.

Likewise, river diversion and reservoir projects will be implemented to substitute import by managing electricity supply during the peak hours of demand. Legal and institutional measures will be introduced to protect and preserve river systems nationwide.

Legal and Institutional arrangements for the river basin master plan will be made in line with the concept of integrated water resource management. Furthermore, water-induced disaster management and irrigation systems will be reconstructed in the areas affected by climate change and earthquakes. Network of hydrological and meteorological centers will be expanded and upgraded.

Reliable irrigation services will be expanded to arable land through integrated and multipurpose development of water resources. Irrigation systems will be restored giving priority to farmers’ convenience.

The government also targets to give emphasis to the sustainable use of water resources, groundwater recharge, protection of lakes and reservoirs, and the construction of storage facilities.

Access to modern and renewable energy will be ensured for all citizens, with the development of solar, wind, and hydrogen energy as alternative sources of renewable energy.

To address the demand for electricity supply even during the dry season and to maintain energy security, an appropriate financial model will be adopted for the development of reservoir-based and multipurpose hydropower projects.

National and cross-border high-capacity transmission lines will be expanded including with the participation of the private sector. Other necessary policy and regulatory measures, including determination of transmission and wheeling charges will be made to build electricity transmission infrastructure.