Published on September 4, 2020. Modified on August 30, 2023.
With over 90% of the country’s total electricity generation capacity generated by hydropower plants, Nepal is heavily dependent on hydro resources to meet its energy demands. Hydropower plays a particularly important role in Nepal’s economic future because of the scale of its potential. It is estimated that Nepal has the economically viable potential to put in place over 40,000 megawatts (MW) of hydro generation capacity. If such potential is realized, it could easily meet Nepal's suppressed demand and create a surplus that could be exported to neighboring countries in South Asia. However, the lack of access to reliable, grid‐supplied electricity is a key constraint to economic growth and an obstacle to reducing poverty. Developing sustainable hydro generation will enable Nepal to balance its supply deficit in the dry season with the revenues made through exports during the wet season, when river flows are high.
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