Government Unveils Ambitious Plan: Nepal to Increase National Grid Capacity to 4500 MW with Rs 50.74 Arba Budget Allocation

Finance Minister Barshaman Pun, in the budget presentation for the Fiscal Year 2081/82 BS (2024/25), unveiled the government's ambitious plan to enhance the national grid capacity to 4500 MW. As part of this endeavor, an augmentation of 900 MW of electricity to the national grid is slated. This initiative, as highlighted by the finance minister, anticipates a notable increase in per capita electricity consumption from 380 kWh to 450 kWh.

Nepal's strategic objective includes commencing electricity exports to Bangladesh, in addition to the existing exports to India. To achieve this goal, the government has accorded precedence to reservoir-based projects, with a particular emphasis on advancing the 1200 MW Budhigandaki Hydroelectricity Project. Concurrently, efforts will commence toward the development of the 625 MW Dudhkoshi, 417 MW Nalgadh, and 280 MW Naumure projects.

Moreover, initiatives such as the 77.5 MW Ghunsha Khola and 70.3 MW Simbua Khola projects will attract investments from Nepali expatriates. Under the People's Hydroelectricity Programme, groundbreaking activities will be initiated for the 106 MW Jagadulla, 99.9 MW Tamakoshi V, and 210 MW Chainpur Seti projects.

The government is poised to establish an investment framework for Sunkoshi III and conduct a feasibility study for the 10,800 MW Karnali Chisapani project. Concurrently, concerted efforts will be directed toward fostering clean energy practices, facilitating the production of green hydrogen, completing pivotal transmission lines, and instigating new corridor projects. Notably, a budget allocation of Rs 50.74 Arba  has been earmarked for the energy sector to support these initiatives.