Nepal's Hydropower

NEPAL'S HYDROPOWER INTRODUCTION

Nepal's hydropower potential is vast and can be developed for the generation of revenues to fund development programs and contribute to the overall development of the country. Despite having an estimated potential of 83000 MW and an economically feasible potential of about 42000 MW, Nepal's current total installed generation capacity in the Integrated National Power System is merely around 1050 MW, out of which hydropower has a share of 950 MW. Only about 17% of the total population has access to electricity.

Recognizing the need to address these issues, and to develop its water resources potential, Government of Nepal has defined a power development plan (Short Term, Medium Term and Long Term as per Nepal Water Plan 2003). The Government of Nepal is encouraging private investment in this sector. Potential hydropower projects are generally ranked on the basis of technical, economical, social and environmental criteria. In order to attract private sector investment in this sector the Government of Nepal has formulated seperate policies and legal framework in this sector which are as follows:

- Hydropower Development Policy, 1992 and 2001

- Electricity Act, 1992 (Regulations 1993), which is now under amendment

- Nepal Electricity Regulatory Commission Act (Draft) with independent regulatory mechanism