Nepal has significant potential for hydropower generation, with an estimated 42,000 megawatts (MW) of economically feasible capacity. However, as of 2021, Nepal has only developed about 1,200 MW of hydropower, and many of the country’s hydropower projects are small scale.
Nepal’s hydropower potential is largely untapped due to a lack of investment, technical expertise, and infrastructure. However, in recent years, the Nepali government has made efforts to attract foreign investment in the country’s hydropower sector and has set a goal of generating 10,000 MW of electricity from hydropower by 2030.
The major hydroelectric project in Nepal is the West Seti Hydropower Project which is under construction.It is expected to generate 750 MW power. The government of Nepal and the government of India signed an agreement to develop the project in 2014.
In addition to large-scale hydroelectric projects, Nepal also has significant potential for small and micro hydropower projects, which can provide electricity to remote, off-grid communities. These projects can be developed and managed by local communities and organizations, which can provide a means of income generation and help to promote rural development.