27th March 2025, Kathmandu
At the Nepal-India Energy Summit in New Delhi, Ganesh Karki, President of the Independent Power Producers’ Association Nepal (IPPAN), urged Indian investors to explore opportunities in Nepal’s rapidly growing energy sector. Karki highlighted that Nepal offers promising prospects for investment in hydropower and renewable energy projects.
Nepal-India Energy Summit
The Nepalese government has set an ambitious goal of producing 28,500 MW of electricity by 2035. To achieve this, the government estimates an investment of 46.5 billion USD. Karki stressed that this presents a great opportunity for investors looking to tap into the energy sector. Nepal’s private sector has made impressive strides since it began producing electricity in 2000. Today, the country’s installed capacity stands at 3,500 MW, with 80% (approximately 2,800 MW) coming from private companies.
Karki also shared that Nepal and India currently exchange 1,000 MW of electricity, with plans to increase that number to 10,000 MW over the next decade. A long-term agreement has already been made between the two countries to expand the power exchange. Indian companies have already invested in several projects in Nepal, contributing 5,000 MW to the country’s capacity. Additionally, thousands of megawatts are set to be developed, offering ample opportunities for further investment.
According to a study by the Nepal Investment Board, Nepal has 4.32 GW of potential in solar energy. This makes the country an attractive destination for Indian investors interested in renewable energy projects. Nepal is particularly eager to partner with major Indian business groups such as Adani Group, Tata Power, Jindal Power, GMR Group, SJVN Limited, and NHPC.
Karki emphasized the need to turn Nepal’s vast hydropower potential into reality. He believes that the country can meet the region’s growing energy demand and become a key supplier in the market. In his presentation, Anand Chaudhary, Vice President of IPPAN, mentioned that Nepal is currently producing 3,500 MW of electricity, with another 4,000 MW worth of projects under construction. Additionally, about 4,100 MW of projects have secured Power Purchase Agreements (PPA) and are waiting for financial closure. There are also plans for 20,000 MW of capacity in various stages of study, providing plenty of opportunities for investors.
Chaudhary further informed the Indian investors about three dozen major hydropower projects in Nepal. These projects, both public and private, are promising investment opportunities.
Chiranjeevi Chataut, Joint Secretary of the Ministry of Energy, Water Resources, and Irrigation, assured investors that the government is committed to supporting investment in the energy sector. He pointed out that Nepal already has the necessary infrastructure, including the 400 kV cross-border transmission line connecting Nepal and India. In addition, new transmission lines are under construction to improve electricity trade between the two countries.
Chataut also highlighted Nepal’s hydropower policy, which provides strong protection for investors, ensuring a secure environment for investment in the country.
The Nepal-India Energy Summit, organized under the theme “Exploring Investment Opportunities in Hydropower and Renewable Energy,” was held by the Nepal Embassy in India, the Indian Federation of Green Energy (IFGE), and IPPAN. The summit served as a platform for discussing energy collaboration and attracting Indian investment in Nepal’s energy sector.
With its abundant energy resources and a growing infrastructure, Nepal is positioned to meet the region’s energy needs. The summit successfully opened doors for future partnerships and investment in the country’s energy sector.
Key Highlights:
Nepal aims to produce 28,500 MW by 2035, requiring 46.5 billion USD in investment.
India is already involved in several energy projects in Nepal, contributing 5,000 MW.
Nepal has 4.32 GW of solar energy potential.
The country has 20,000 MW of energy projects in various stages of development, offering significant investment opportunities.
For more: Nepal-India Energy Summit