Hydropower - Renewable Energy Solution for Sustainable Development: A Review of Hydropower Development in Nepal

Hydropower, a renewable energy source with its multifaceted benefits, plays a vital role in developing and conserving the environment by reducing biofuel use for cooking-heating and replacing petroleum use in transportation and industries. Despite of rich water resources with the potential to generate more than 42,000 MW electricity, hydropower development is at a slow pace. This review aims to shed light on policy, private sector engagement, and the current status of hydropower generation. Exporting surplus hydroelectricity to neighboring countries like India and Bangladesh generates revenue that can leverage development funding. This review recognizes that the private sector investment in hydropower generation is encouraging after the promulgation of the New Constitution in 2015. The recent power trading agreement initiated exporting electricity to India may open for exporting to Bangladesh. The water resource endowed gives an ample opportunity to generate electricity. Hydropower generation is a capital intensive sector that strives for private and foreign investment. A study on climate change impacts on hydropower finance and the role of hydropower in climate adaptation and mitigation could inform policymakers and investors. Assessing likely demand for electricity in domestic and export markets is essential for planning and strategizing to harness water resources.