Reservoir-based hydropower projects to be prioritised: Energy Minister Shrestha

May 25, Kathmandu: Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has said reservoir-based hydropower projects will be prioritised as a key strategy for Nepal’s long-term energy security.

After inspecting the Kulekhani Hydropower Project on Sunday, Minister Shrestha said such projects are important not only for electricity generation but also for water management, irrigation expansion, flood control and tourism promotion. He said the government will focus on promoting reservoir-based projects in the coming days as part of broader economic transformation.

Stating that climate change has increased risks such as irregular rainfall and glacial melt, the Minister said reservoir projects are necessary to ensure reliable energy supply. He stressed the need to expand electricity production during peak hours to support industrial growth, particularly in sectors such as data centres and information technology.

Minister Shrestha also directed the Nepal Electricity Authority to develop an integrated approach for reservoir projects and to attract both domestic and foreign investment. He noted that a 50-year licensing policy has been introduced to encourage private sector participation.

Calling the Kulekhani project a model, he instructed concerned authorities to address local issues, improve waste management in the Indrasarovar area, and carry out maintenance of ageing equipment. He also directed the demarcation of project areas and management of debris flowing into the reservoir during floods. Completed in 1982, the Kulekhani project is Nepal’s first reservoir-type hydropower plant with a total capacity of 106 megawatts, including Kulekhani-1, 2 and 3.