Resilient Hydro Projects

When floods and landslides occur every year in the country, particularly during the monsoon season, the hydropower sector is among the most affected. This is understandable, as most hydropower projects currently being developed are run-of-river projects located in river basins. Every year, hydropower projects, including those already in operation or those under construction, are affected by floods and landslides, resulting in significant losses of investment. Such disasters not only lead to the loss of national investment but also require substantial resources for reconstruction and adversely affect the electricity supply system. Nepal has been developing hydropower for more than 115 years, yet installed capacity has reached only around 4,300 MW. The pace of development has accelerated in the past decade, with greater participation from domestic and foreign investors. This has raised hopes that Nepal can make better use of its vast hydropower potential and increase electricity generation for both domestic consumption and export. However, recurring problems of floods and landslides have pushed back the harnessing potential, as investors are worried to increase investment in the sector when risk is growing.