Approval of energy roadmap encouraging

Kathmandu, Jan.2: The approval of the ‘Energy Development Roadmap and Action Plan 2081’ prepared with an ambitious target of generating 28,500 MW of electricity by 2035 by a meeting of the Council of Ministers on Tuesday has encouraged all those working in the power production sector. 

With the approval of the proposal, all types of investment models have now been opened for investment in large and new projects.

Along with this, the implementation period of a 10-year action plan to increase Nepal's electricity generation capacity, which is currently around 3,400 MW, to 28,500 MW by 2025-35, and transmission and consumption has also begun.

Minister for Energy, Water Resources and Irrigation Deepak Khadka said that the roadmap and action plan include opening all investment models for hydropower projects so that the path to generating 28,500 megawatts of electricity by 2035 is opened.

"We had submitted a proposal to the Council of Ministers to facilitate investors and open the way for domestic and foreign investors to invest in hydropower projects. Once the proposal is passed, the government's goal of 'Prosperous Nepal' through the hydropower sector will be achieved," he said.

The roadmap has paved the way for the government to advance projects, including domestic and external investments, and all forms of hydropower. 

Minister Khadka said that the way is now open to increase the process in whichever model the investors want to come in, so that the state benefits the most. The energy development roadmap aims to complete the construction of run-of-the-river hydropower projects in four years, semi-reservoir-based in six years, and reservoir-based in seven years. 

The target is to invest USD 46.5 billion (Rs. 6,231 billion) for the overall development of the country's energy sector, including generating 28,500 MW and transmission by 2035. 

After a long period of discussion and debate, the roadmap has been approved by the Council of Ministers, paving the way for the stalled projects to move forward at full speed, said the Ministry.

The roadmap and action plan has set a target of exporting 15,000 MW of the electricity produced and consuming 13,500 MW within the country. It also includes plans to build the necessary transmission lines and substations for this.

It is stated that per capita electricity consumption will be increased to 1,500 units by 2035. The roadmap also includes details of the investment required for hydropower projects, transmission, distribution and substation construction. 

By that period, it is stated that the construction of 6,431 circuit km of 132 kV, 4,061 circuit km of 220 kV, and 6,440 circuit km of 400 kV transmission lines will be completed, bringing the capacity of substations to 40,000 MVA.

An agreement has been reached to export 10,000 megawatts of electricity to neighbouring India in the next 10 years. In addition, a plan to export 5,000 megawatts of electricity to other neighbouring countries, including Bangladesh by 2035, has been mentioned in the roadmap, the Ministry said.

Nepal and Bangladesh have already signed an electricity trade agreement. Nepal has already started the trade by exporting 40 megawatts to Bangladesh during the monsoon season.

The country's total installed power capacity is set to reach 28,500 megawatts by 2035, but only about 3,400 megawatts have been generated so far. Minister Khadka said that the government has adopted a policy to prioritise reservoir projects in the coming days and encourage the private sector to invest accordingly.

The government, private sector, and general public will also have a share in the investment in the energy sector. 

Similarly, in addition to private sector, general public, and foreign investment, it has been decided to include the capital of Non-Resident Nepalis and Nepalis employed abroad with equal importance.