Nepal’s journey from being an energy-deficient nation to an emerging power surplus country within a decade is nothing short of remarkable. The report that Nepal's electricity production capacity has tripled to 3,157 MW, with an impressive 1,700 MW added in just the past three years, is a significant achievement that Nepal can showcase to the world. This development should not be seen merely as a statistic; rather, it should be recognized as a beacon of hope amid the numerous challenges our country continues to face. Nepal is often cited as the second-richest country in the world after Brazil in terms of hydropower potential. However, the country had long been unable to harness this potential for various reasons. The fact that Nepal currently has an installed capacity of 3,157 MW, of which 2,991 MW is hydropower, shows that this Himalayan nation is on the right path. The country added 2,300 MW in the past eight years and 1,700 MW in the past three years alone.
Additional X-ray machines installed at TIA customs
However, while this achievement gives us a reason to celebrate, it is crucial to recognize that we cannot afford to be complacent. Effective utilization and management of this resource are extremely important. This is where the significance of cross-country transmission lines and increased domestic consumption comes into play. While the construction of a Nepal-India cross-border transmission line under the grant assistance from the Millennium Challenge Corporation is currently underway, there are also discussions to build more transmission lines, including a Nepal-China cross-border transmission line. If completed on time, these projects will enable us to export surplus power, generating income for the betterment of our people. The delay in constructing these transmission lines could result in wasted opportunities and economic stagnation, making it a priority that cannot be overlooked. Simultaneously, increasing domestic consumption of electricity is equally critical. The rising adoption of electric vehicles (EVs) in Nepal is a positive development. By reducing the import of fossil fuels, EVs contribute to the economy by lowering the trade deficit and decreasing the country’s reliance on expensive and environmentally harmful energy sources. The government must continue to support and incentivize the adoption of electric vehicles while also improving the necessary infrastructure, such as charging stations and grid capacity for this transition to be successful.
Furthermore, the significant progress in hydropower generation has been largely driven by the private sector, which now accounts for nearly two-thirds of the total hydropower generation. As a newspaper, we believe that this public-private synergy must be nurtured further. The role of the Nepal Electricity Authority (NEA) in facilitating power purchase agreements (PPAs) is equally crucial, and the four-fold increase in PPAs over the past eight years is a positive development. Yet, as more projects come into operation, ensuring that the infrastructure keeps pace with production becomes ever more critical. The government must work towards further strengthening the state-owned power utility, giving it more autonomy to function like a business entity. Nepal has set an ambitious target of reaching 10,000 MW of electricity production by the fiscal year 2028/29. However, the focus should not just be on increasing capacity but also on ensuring that this capacity is efficiently utilized both domestically and through exports. The government must take initiatives to build the necessary infrastructure, promote the use of electric vehicles, and encourage power trade with neighboring countries. These steps will not only secure Nepal’s energy future but also pave the way for economic growth and environmental sustainability.
