Challenges in Nepal’s Hydropower Business: A Banker’s Perspective
Nepal is often hailed as a hydropower goldmine, with studies estimating a technically and financially viable capacity of over 42,000 MW. This potential could transform the nation into a regional energy hub, exporting electricity to neighboring countries like India, where demand is high, and generating trillions of Nepalese rupees in foreign currency. Hydropower could be a cornerstone of economic development, prosperity, and energy security for Nepal. The government has prioritized this sector, introducing reforms to encourage growth, but progress remains frustratingly slow—akin to a “tortoise walking.” Despite the immense potential, Nepal currently utilizes less than 3% of its capacity, importing over 400 MW from India while many regions still lack electrification. Per capita electricity consumption remains among the lowest globally. As a professional banker with eight years of experience in hydroelectric financing, I’ve witnessed firsthand the opportunities and challenges in this se...