The “Energy Development Roadmap and Working Guideline,” which was authorized by the government, discusses producing 28,500 MW of power over the course of the next ten years.
The energy roadmap, which calls for investing US $46.5 billion (Rs 6.231 trillion) to generate the aforementioned quantity of electricity by 2035, was approved by the Cabinet meeting on Tuesday. With a goal of building run-of-river projects in four years, semi-reservoir projects in six years, and storage projects in seven years at most, the energy forecast framework seeks to accelerate the construction of all hydroelectric projects.
A semi-reservoir project is expected to cost $1.7 million per MW, while a run-of-river project is expected to cost $1.6 million per MW. The roadmap has designated the transmission lines required to support the production and use of 28,500 MW of electricity in addition to the power plants. In order to do this, the government intends to upgrade the substation capacity to 40,000 kVA and add 6,431 circuit kilometers of 132 kV, 4,061 circuit kilometers of 220 kV, and 6,440 circuit kilometers of 400 kV transmission lines.
According to the roadmap and operating rules, the government will handle finance sources for the projects it plans to start as soon as possible, and the private sector will be given control of the ones that cannot be realized.
According to Dipak Khadka, minister of energy, water resources, and irrigation, the roadmap is adaptable, enabling private sector investors to put their preferred energy generation model into action. “It discusses enabling the greatest possible participation of the general public in the generation of electricity, while guaranteeing the greatest possible advantages for the state,” he stated.
13,000 MW of the expected production would be used domestically, while 15,000 MW will be exported to nations like India. Over the next ten years, Nepal and India aim to export up to 10,000 MW of electricity to India under a long-term energy deal. The government has also set an annual goal to increase household energy usage to 1,500 MW per person.
According to the plan, the government will invest US $6 billion in a number of power projects in order to resolve the investment sources conundrum. $10 billion will also come from domestic sources, such as Nepali banks and financial organizations; $2 billion will come from climate finance; and $12 billion has been raised from the Nepali diaspora, including migrant labor. The government intends to raise $8.5 billion from grants, loans, and foreign direct investment, while the Nepal Electricity Authority (NEA) would invest $8.5 billion through refinancing and reinvestment initiatives.
The roadmap anticipates that the government will be able to raise Rs 88 billion in revenue from the energy industry if it completes its ambitious goal on time. Private power producers would be able to earn Rs 3.9 trillion by selling electricity, while the NEA will make Rs 2.6 trillion from the same activity.
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