World Potential (NEPAL)

Energy Sector
In 1999/2000 the Nepal Electricity Authority (NEA), Nepal's national power authority, brought the 6.2 MW Ilam hydropower project and the 60MW Khimiti hydropower project on-line, bringing its total installed capacity to 389.574 MW, of which 85.41% was hydro-based and mainly run-of-river facilities. Hydropower projects provide approximately 73% of nepal's energy, with thermal projects providing 4%, purchases from private power companies 10%, and imports from India 13% of the total available energy.

The country's demand of electricity is estimated in the range of 350-400 MW, presenting a deficit of almost 100 MW. The NEA has estimated power demand in 2001 at 405 MW. This present deficit of power has led the country to introduce load-shedding programs.

Load shedding practises have not only disrupted normal life but have affected business and industry. In an area where industries are already experiencing difficulties competing in the market, load shedding has compounded their reduced competitive capacity. To reverse this situation, extra efforts to harness more of its enormous natural water resources is needed to quicken the pace of development.

The government of Nepal has fully recognised the importance and urgency of energy development and has introduced a series of policies outlined in its Ninth Five Year Plan, encouraging local and foreign investors to actively participate in the development and construction of hydropower projects. The government has also developed a Water Resource Policy 2000 to further improve investment environments.

Country Brief
Water Resources
Energy Sector
Hydropower Development & Micro Hydro in Nepal
Small Hydro in Nepal
Conclusions