Aims to generate 28,500 MW of electricity by 2035
The Nepal Weekly 
January 7, 2025
Energy Development Roadmap 2081, which aims to increase Nepal’s total installed electricity capacity to 28,500 megawatts (MW) by 2035 has been approved by Government of Nepal. The plan envisions an estimated investment of USD 46.5 billion (NPR 6,383 billion) to advance the country’s energy sector. A Cabinet meeting held on Tuesday 31st December 2024 approved the roadmap proposed by the Ministry of Energy, Water Resources, and Irrigation.
At present, Nepal has an installed electricity capacity of approximately 3,400 MW. To meet the ambitious goal, the Government has initiated a 10 year action plan (2025–2035) that includes power generation, transmission, and consumption. The roadmap includes facilitating investments in large-scale and new hydropower projects under various models, according to Energy Minister Deepak Khadka.
He mentioned that the roadmap opens avenues for investment from the government, private sector, and foreign direct investment in all types of hydropower projects.
The roadmap outlines the necessary investments for hydropower generation, transmission infrastructure, distribution networks, and substations. Minister Khadka highlighted that the strategy ensures maximum public participation and prioritizes models that maximize state benefits.
The roadmap has set a target to export 10,000 MW of electricity to India within the next decade. Additionally, it plans to export 5,000 MW to other neighbouring countries, including Bangladesh, by 2035. The government aims to prioritize reservoir-based projects in the coming years, encouraging private sector participation.
This was also noted that the energy action plan 2025 – 2035 to generate 28,500 MW, will require an estimated investment of over Rs 4,600 billion.
Miniser Khadka, on the other day, addressing a gathering of Solar energy professionals mentioned that for the accomplishment of the 10 years action, role of Solar energy generation is important. He elaborated that Solar electricity should be taken side by side to hydropower for the success of the Government’s plan of generating 28,500 MW of electricity by 2035.
He also appreciated the contributions of Solar energy professional in accessing electricity to match the people’s need. However, he cautioned that arable lands should not be utilized for generating electricity from Solar PV technology. So as the Government will consider on providing land below transmission lines, barren hills, space above the irrigation canals, roof tops of private buildings for the Solar electricity generation purpose.
The action plan is welcomed by Independent Power Producers Association Nepal (IPPAN) which is a leading private sector hydropower developers, umbrella organization.
“This approval is a significant milestone. Achieving the target requires collaboration between the government and the private sector. While ambitious, it is achievable with coordinated efforts,” welcoming the approval of the roadmap Balram Khatiwada, general secretary of the Independent Power Producers Association of Nepal (IPPAN) commented.
Khatiwada urged Nepali banks to play a facilitative role in increasing domestic investments alongside foreign resources. He added that 12,000 MW of Power Purchase Agreements (PPA) are in the pipeline, while feasibility studies are ongoing for an additional 8,000 MW.
The roadmap envisions shared investment contributions from the government, private sector, and the general public. It also encourages participation from non-resident Nepalis (NRNs) and Nepalis working abroad, ensuring equal priority alongside domestic and foreign investments.
Khatiwada emphasized the need for the government to expedite the development of transmission lines and distribution systems to meet the targets. He urged swift action to address infrastructure bottlenecks and enable the energy sector to thrive.
