Hydropower (un)economics

Nepal’s hydropower development is challenged by a series of policy confusions.

Nepal appears to be keen on harnessing its huge hydropower potential to realise its dreams of rapid economic growth and prosperity. Demand for clean and renewable energy including hydropower has shot up due to the global urgency of replacing fossil fuel consumption. The South Asian subcontinent, one of the most densely populated areas on earth, requires a massive amount of energy. And Nepal seeks to offset its burgeoning trade deficit by exporting electricity to markets in neighbouring India, Bangladesh, and possibly, China. Nepal’s commercially exploitable hydropower potential is estimated to be 50,000 megawatts.