Private sector stakeholders have cautiously hailed the government’s ambitious plan to generate 28,500 megawatts (MW) of electricity by 2035, with a goal to export 15,000 MW to the international market. Ganesh Karki, President of the Independent Power Producers' Association Nepal (IPPAN), underscored the transformative potential of this initiative, emphasizing its significance in driving economic growth and establishing Nepal as a regional energy leader but also warned of challenges in securing funds from banks.

He reportedly made such remarks during the financial management agreement signing ceremony for the 49.95 MW Dhanakhola Hydroelectric Project, promoted by Lalupate Hydropower Company.

The Council of Ministers recently approved the Energy Development Roadmap 2081, proposed by the Ministry of Energy, Water Resources, and Irrigation. The roadmap outlines a comprehensive strategy to increase Nepal's total installed electricity capacity to 28,500 MW over the next decade, requiring an estimated investment of USD 46.5 billion (approximately NPR 6,383 billion). A Cabinet meeting held on Tuesday endorsed the roadmap, which sets a bold course for advancing the country’s energy sector.

Currently, Nepal’s installed electricity capacity stands at about 3,400 MW. To achieve the ambitious target, the government has initiated a 10-year action plan (2025–2035) focusing on power generation, transmission, and consumption. The roadmap includes plans for Run-of-River projects, semi-reservoir projects, and storage projects, with completion timelines ranging from four to seven years. To support this expansion, Nepal aims to develop 6,431 circuit kilometers of 132 kV lines, 4,061 circuit kilometers of 220 kV lines, and 6,440 circuit kilometers of 400 kV lines, while upgrading substation capacity to 40,000 kVA.

According to media reports, Karki lauded the roadmap’s potential to catalyze the domestic economy. He noted that Rs 4000 billion of the total investment would remain in Nepal, fueling industries such as cement production and hydropower projects, and creating employment opportunities. This, he said, would stimulate significant economic activity and ensure sustainable growth.

The roadmap also seeks to increase domestic energy consumption to 1,500 kilowatt-hours per capita annually. Nepal has already made strides in cross-border electricity trade, with milestones such as a 400 MW export agreement during former Prime Minister Sher Bahadur Deuba’s tenure, a long-term 10,000 MW export agreement under former Prime Minister Pushpa Kamal Dahal, and the recent export of 40 MW of electricity to Bangladesh.

Despite the positive environment for growth, Karki warned that unresolved issues could hinder progress. He pointed to delays in public offerings for hydropower projects by the Securities Board of Nepal and challenges in securing funding from banks. He stressed that addressing these bottlenecks is essential for the sector’s success, the reports added.

The Dhanakhola Hydroelectric Project, a 49.95 MW initiative promoted by Lalupate Hydropower Company, exemplifies the potential of Nepal’s hydropower sector, Karki reportedly said. Located in Naso Rural Municipality of Manang, the project has secured Rs 9.96 billion in funding through local shares, operator investments, and bank loans.

At the project’s financial management agreement signing ceremony, Lalupate Hydropower Chairman Mohan Kumar Dangi reportedly emphasized the critical need to convert water resources into electricity, calling the project’s completion imperative.

This project is expected to contribute to Nepal’s commitment to harnessing its abundant hydropower resources in line with the government’s roadmap.