Indian government-owned and private sector companies have secured seven hydropower projects in Nepal with a combined generation capacity of around 4,700 MW.
However, only one of these projects has entered the construction phase, indicating that most of the proposed capacity is yet to move towards implementation.
The projects form part of the broader energy cooperation between India and Nepal, which aims to strengthen cross-border electricity trade and improve regional power connectivity.
Under the bilateral framework, Nepal has committed to exporting 10,000 MW of electricity to India over the next 10 years.
Hydropower is an important part of this partnership, as Nepal has significant potential to generate electricity from its river systems.
The development of these projects could provide India with an additional source of renewable electricity while supporting Nepal’s efforts to expand its power generation capacity.
However, timely execution will be important to achieve the proposed generation and export targets. The development of supporting transmission infrastructure will also play a crucial role in enabling electricity generated in Nepal to reach Indian markets.
The projects are expected to strengthen regional electricity cooperation, expand the availability of clean power and create opportunities for greater integration of the two countries’ power systems.
