The Council of Ministers has approved the Energy Development Roadmap 2081, which aims to increase Nepal's total installed electricity capacity to 28,500 megawatts (MW) by 2035. The plan envisions an estimated investment of USD 46.5 billion (NPR 6,383 billion) to advance the country’s energy sector. A Cabinet meeting on Tuesday approved the roadmap proposed by the Ministry of Energy, Water Resources, and Irrigation.
Nepal currently has an installed electricity capacity of approximately 3,400 MW. To meet the ambitious target, the government has initiated a 10-year action plan (2025–2035) that includes power generation, transmission, and consumption. The roadmap facilitates investments in large-scale and new hydropower projects under various models, said Energy Minister Deepak Khadka.
“We proposed this roadmap to the Council of Ministers to encourage domestic and foreign investment. With its approval, Nepal is set on a path toward achieving prosperity through the hydropower sector,” Minister Khadka stated.
He emphasized that the roadmap opens avenues for investment from the government, private sector, and foreign direct investment in all types of hydropower projects.
The roadmap outlines the necessary investments for hydropower generation, transmission infrastructure, distribution networks, and substations. Minister Khadka highlighted that the strategy ensures maximum public participation and prioritizes models that maximize state benefits.
The roadmap has set a target to export 10,000 MW of electricity to India within the next decade. Additionally, it plans to export 5,000 MW to other neighboring countries, including Bangladesh, by 2035. The government aims to prioritize reservoir-based projects in the coming years, encouraging private sector participation.
Balram Khatiwada, general secretary of the Independent Power Producers Association of Nepal (IPPAN), welcomed the approval of the roadmap.
“Although delayed, this approval is a significant milestone. Achieving the target requires collaboration between the government and the private sector. While ambitious, it is achievable with coordinated efforts,” he said.
Khatiwada called for Nepali banks to play a facilitative role in increasing domestic investments alongside foreign funding. He added that 12,000 MW of Power Purchase Agreements (PPA) are in the pipeline, while feasibility studies are ongoing for an additional 8,000 MW.
The roadmap envisions shared investment contributions from the government, private sector, and the general public. It also encourages participation from non-resident Nepalis (NRNs) and Nepalis working abroad, ensuring equal priority alongside domestic and foreign investments.
Khatiwada emphasized the need for the government to expedite the development of transmission lines and distribution systems to meet the targets. He urged swift action to address infrastructure bottlenecks and enable the energy sector to thrive.
