Introduction to Hydropower in Nepal

Hydropower is the major source of Electricity in Nepal. Nepal has got 83GW hydropower potential among which 43GW is economically feasible. But there is just 737MW of total power supply in Nepal which is less than 1% of total potential. World's 20% of electricity is by Hydropower. In contrary, 96% of electricity in Nepal is by Hydropower - This says a lot of Nature Power of Nepal. Hydropower electricity is environment friendly - no pollution in air or in land, and, is also the most efficient method of all.

The history of hydropower development rolls back to 1882 AD in USA but in Nepal Pharping Hydropower Project starts its production from 1911 AD having install capacity of 500KW. Since then many hydropower stations were established with the help of government, NEA, ADB, NGOs, and INGOs as well as different countries. But due to political instability there is no expected development in hydropower and there are no hydropower of higher install capacity. Kaligandaki has the install capacity of 144MW and no other hydropower project has higher capacity than this. There are various hydropower projects under construction with higher install capacity which will certainly overcome the energy crisis in Nepal.

Upper Tamakoshi – 309MW
Upper Trishuli-3A – 61MW
Upper Kanali – 300MW

Hydropower business is a great way for Nepal to progress - It has the potential to uplift poverty, provide electricity to every household and even allow Nepal to sell electricity to other countries. Popularity of Hydropower comes closer to becoming Nepal's third most important business for earning foreign-revenue and every year, lots of foreign companies visit Nepal for project studies.

If Nepal more effectively harnessed its 83,000 megawatts of hydropower potential, the country could meet its domestic demand for electricity, as well as export electricity and potentially transform the economy. Lack of electricity is a major constraint to economic development and poverty alleviation. Currently, Nepal is harnessing less than 1 percent of its potential hydropower energy and the country depends on biofuels, mainly wood, to meet its energy needs. This has serious consequences for Nepal’s environment as the consumption of wood for fuel accelerates deforestation and soil erosion.