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The Economy of Nepal

Hydropower: Nepal's Great Asset

Rivers falling from the Himalaya offer vast hydropower potential, and Nepal now exports electricity to India and even beyond.

Water as an export.

Potential

Estimates run to tens of thousands of megawatts of economically viable capacity.

Progress

Installed capacity has grown quickly, ending regular load-shedding within Nepal.

Exports

Nepal sells surplus power to India in the monsoon season, and to Bangladesh through Indian grids.

Challenges

Delays, high financing costs, landslides and seasonal variation limit output.

A monsoon surplus

In wet months, rivers are full and Nepal has more power than it needs, so it exports to India.

Thinking hydropower is available all year at full capacity

River flows vary seasonally.

Key takeaways
  • The potential is huge.
  • Load-shedding has ended.
  • Power is exported to India.
  • Seasonality and delays are issues.
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