Other Publications

A Study of Nepal's Hydropower Sector

January 2017

Nepal’s hydropower generating capacity of major river basins is said to be 83,290MW of which 42,133MW is deemed economically feasible to harness. Nepal has exploited only 776MW (1.80%) of its total generating capacity. As of now, the two major players in the hydropower sector are the Nepal Electricity Authority (NEA) and the Independent Power Producers (IPPs), with the NEA owning 65% of all hydropower projects in operations and the IPPs controlling the remaining 35%. The report highlights some key macro-level recommendations to further the development of the hydropower sector in Nepal. Recommendations include: methods to solve institutional and legal issues faced by the sector; ways to solve the demand supply mismatch and directions to create a better financial climate for hydropower investors.