FY 2024/25 Budget: Govt plans to increase national grid capacity to 4,500MW

KATHMANDU: The government has announced plan to increase the capacity of the national grid to 4,500 megawatts (MW) in the upcoming fiscal year.

While presenting the budget for fiscal year 2024/25 before the joint session of the Federal Parliament today, Finance Minister Barsha Man Pun stated that an additional 900MW of electricity will be added to the national grid in the forthcoming fiscal year.

According to government estimates, the per capita consumption of electricity will rise from 380 kilowatts (kW) to 450kW. In addition, the government plans to start exporting Nepal's electricity to Bangladesh in the upcoming fiscal year.

At present, Nepal only exports power to India. The government has prioritised the promotion of reservoir-based projects to meet power needs during winter and has pledged to implement the construction of the 1,200MW Budhigandaki Hydroelectricity Project.

The government has also pledged to initiate the development of the 625MW Dudhkoshi, 417MW Nalgadh, and 280MW Naumure projects. It plans to commence the development of the 77.5MW Ghunsha Khola and 70.3MW Simbua Khola hydroelectricity projects by securing investment from Nepalis working abroad.

Under the People's Hydroelectricity Programme, the government aims to start the construction of the 106MW Jagadulla, 99.9MW Tamakoshi V, and 210MW Chainpur Seti Hydroelectricity Project.

In addition to these, the government has announced plans to determine the investment framework for the Sunkoshi III Hydropower Project and begin the feasibility study for the 10,800MW Karnali Chisapani Hydropower Project.

The government has announced its goal of promoting clean and renewable energy to replace the use of traditional energy, with the aim of achieving zero carbon emissions by 2045. It plans to encourage the production, storage, and use of green hydrogen and has pledged to complete the construction of the Dhalkebar-Inaruwa Transmission Line and Barhabise-Khimti-Lapsiphedi transmission line within the next fiscal year.

The government aims to initiate the construction of the Seti Corridor, Bheri Corridor, and Budhigandaki Corridor Transmission Lines and to conclude the construction of the New Butwal-Gorakhpur Transnational Line. It also plans to allocate the budget for the construction of the Inaruwa-Poornia and Dododhara-Bareli Transmission Line.

Finance Minister Pun informed the house that the government has allocated a budget of Rs 50.74 billion to the energy sector in the upcoming fiscal year.