Nepal’s hydropower sector is emerging as a gamechanger, fostering robust energy
cooperation with India. This collaboration not only benefits Nepal by reducing its
reliance on fossil fuels but also plays a pivotal role in addressing its trade deficit.
Nepal’s hydropower potential is colossal, with studies indicating the capability to
generate over 42,000 mw hydropower. However, the country once grappled with
18 hours of daily load shedding. Fortunately, the situation has transformed
significantly. Nepal has become somewhat self-reliant in power generation and
shifted from being an energy-importing nation to an energy-exporting one.
With an ambitious goal to produce 30,000 mw electricity by 2035, Nepal is
actively working to optimise its power production capacity. As Nepal and India
continue to strengthen their energy cooperation in the hydropower sector, Indian
investments in Nepal’s energy infrastructure are poised to quadruple.
