Experts emphasise clean energy for Nepal's sustainable future

KATHMANDU: Experts advocated clean energy for a sustainable future at Nepal Infrastructure Summit 2024.

On the second day of the Summit, organised by the Government of Nepal and the Confederation of Nepalese Industries (CNI), experts underscored the indispensability of clean energy for a sustainable future during the 'Energy and Water Resources' session.

National Hydro Power Company Executive Chairman Kumar Pandey highlighted significant advancements in Nepal's clean energy sector, attributing these to substantial private sector investments over the past decade. "The private sector has a crucial role to play in this," Pandey remarked. He also pointed out legal hurdles in energy development, particularly the delays in passing the Electricity Bill in parliament, suggesting that resolving these issues would expedite progress.

Pandey explained that Nepal's electricity system predominantly relies on river flow, advocating for the prioritisation of reservoir and semi-reservoir hydropower projects. With the government aiming to produce 28,500 megawatts (MW) of electricity by 2035, he identified raising investment as a key challenge.

Keshav Dhwaj Adhikari, former Joint Secretary of the Ministry of Energy, Water Resources and Irrigation, mentioned that Nepal ranks 115th in global electricity consumption. The country's total connected capacity has reached 3,062MW, with 573.6MW from the Nepal Electricity Authority (NEA) and 58MW from thermal sources, totalling 626MW. He highlighted that the private sector contributes 2,436MW.

Huawei APAC Digital Power Smart PV & ESS President Chen Yong asserted that green transformation is no longer optional as nations strive to reduce carbon emissions. He mentioned Huawei's investments in electric vehicles, charging stations, ICT technology, green power generation, energy internet, mobility electrification, and green ITC power infrastructure, affirming that green energy is the future.

Nepal Water and Energy Development Company Managing Director Youngjin Hong emphasised Nepal's vast hydropower potential and reiterated that clean energy is the future.

Sujata Gupta, Energy Director of the East Asia Department of the Asian Development Bank (ADB), stressed the need for significant investment in Nepal's transmission lines. She noted that private sector investment in Nepal is currently focused on manufacturing. ADB holds a 40% stake in Nepal's transmission line construction, and 98% of electrification has been achieved in Nepal. "We are happy and proud to be Nepal's partner," Gupta stated, adding that transparency is expected to encourage private sector investment. "We are ready to invest to encourage the private sector."

Ganesh Karki, President of the Independent Power Producers Association of Nepal (IPPAN), expressed confidence in meeting the target of 28,500MW of electricity production by 2035. He mentioned that Nepal has signed an agreement to supply 10,000MW of electricity to India over ten years and is negotiating with Bangladesh. "For that, we need Rs 4.6 trillion investment. We are ready for 10,000MW production. Policy facilitation is needed," Karki said.

Marc Tissot, Senior Investment Expert at DIZ, stated that he is working on hydroelectricity and transmission lines, collaborating with private sector companies on technology development.

Electricity Regulatory Commission (ERC) Chairperson Ram Prasad Dhital, who presided over the session, said the government is creating a competitive environment. "We have a small capacity of human resources, but we are working," he said. "We are working on creating a competitive environment."

He mentioned that the transmission line will be developed as a business. "The ERC is working on a cost recovery model. While production is increasing, the transmission line capacity is insufficient. We are collaborating with private investors to develop a transmission line model," he said adding, "We are also creating a model for reservoir and hydro pump storage."