IPPAN, the Independent Power Producers Association of Nepal, established 25 years ago on January 17, 2001 (Magh 4, 2057) with the objective of promoting the development and growth of Nepal’s energy sector through active participation of the private sector. IPPAN currently encompasses 506 corporate and 60 associate members. This organization has been continuously advocating for necessary policy debates for the development of the energy sector and providing suggestions to the government. IPPAN has been organizing various national and international conferences and seminars to create an investment-friendly environment, modify power development policies, rules, and laws according to current needs, and increase local and foreign investor participation and attraction in this area.
As we delve into the details of Nepal’s Hydropower sector, it’s crucial to acknowledge the remarkable progress our nation has achieved in recent years. Both Nepal and India are at pivotal points in their energy journeys, with vast potential for cooperation and growth in the renewable energy sector, particularly in hydropower. Our transition from energy scarcity to becoming a net exporter of clean, renewable energy reflects our resilience, creativity, and steadfast commitment to sustainable development.
The private sector has become an essential partner in the generation of electricity, and IPPAN continues to work alongside the government to create a favorable investment environment through collaboration, coordination, and facilitation. Though the Electricity Act which was passed in 1992, private sector involvement in hydropower production only began in 1999, with an initial generation capacity of 250 MW. Today, Nepal boasts an electricity generation capacity of 3,623MW, with the private sector contributing 80% (2,923 MW) and the government providing 20% (700 MW).
Currently, 435 projects are under development, with a total capacity of 19,428.85 MW spanning hydropower, solar, wind, and co-generation technologies. Out of these, 141 projects (4,063 MW) are under construction, and another 141 projects (4,363 MW) are in various stages of development, awaiting Power Purchase Agreements (PPA).
The government of Nepal has already secured a long-term agreement with India to export 10,000 MW of electricity within the next 10 years. Additionally, Bangladesh has expressed its intention to import 9,000 MW of electricity from Nepal over the next 15 years. As a crucial partner in this vision, the private sector will play a pivotal role. Therefore, IPPAN’s engagement with the private sector is more important than ever to ensure the success of these goals.
Recently, the Government of Nepal has set a bold vision to generate 28,500 MW of electricity by 2035, with 10,000 MW marked for export to India, 5,000 MW for export to Bangladesh, and the remaining 13,500 MW for domestic consumption. This ambitious goal presents tremendous opportunities for international investors, with an estimated investment requirement of $46.5 billion USD. IPPAN is fully committed to supporting this initiative and ensuring that the private sector plays a central role in realizing these energy ambitions.
Likewise, the potential for solar energy development in Nepal is equally significant. According to a preliminary study conducted by the Investment Board Nepal, there are potential for over 4.32 GW of solar energy production, which clearly highlights the immense potential for solar energy production in our country.
Till today, Nepal and India has been sharing a longstanding and dynamic relationship, particularly in the energy sector. This cooperation has strengthened over the years, evidenced by numerous Power Trade Agreements between our countries. For the past 50 years, India and Nepal have been exchanging power, and in 2014, a Power Trade Agreement was established between the two nations. Since then, India has continued to invest heavily in Nepal's hydropower sector.
The 5,000 MW projects in Nepal, which had received Indian investment, are currently in the development phase. Not only financial investments, India has also provided consultants, equipment, contractors, suppliers, and other business areas thereby further strengthening the bilateral ties between our nations.
To date, 1 cross-border transmission lines (Dhalkebar-Muzaffarpur) have been completed, facilitating seamless electricity exchange between Nepal and India. Ongoing projects such as Butwal-Gorakhpur will continue to enhance infrastructure for power trading. Furthermore, 8 projects are in development phase, which will further deepen our energy connectivity and contribute to regional economic growth.
Our collaboration with India spans both Business to Business (B2B) and Public-Private Partnerships (PPP). Notably, Arun-3, Upper Karnali, and Pancheshwar are joint projects that involve government entities from both countries.
On the other hand, PPPs brings the private sector into the fold, facilitating investment, management, and operation of hydropower projects. Indian companies like Adani Group, Tata Power, Jindal Power, GMR Group, SJVN Limited, and others are making significant contributions to the development of Nepal’s energy infrastructure. We highly encourage all the other investors to invest in Nepal’s hydropower sectors as there are lot of opportunities available. These partnerships not only provide funding but also introduce advanced technologies and management expertise.
Furthermore, private-sector collaboration has also facilitated energy trading between Nepal and India. The Nepali private sector has already set up several trading companies for energy exchange with India. Therefore, we encourage all trading companies in India to partner with us.
The benefits of both B2B and PPP partnerships are profound, fostering sustainable development by supporting large-scale infrastructure projects. These collaborations enhance energy security and promote regional integration, not only for Nepal and India but also for South Asia as a whole. These partnerships have help in generating employment, stimulating economic growth, and facilitating the transfer of cutting-edge technology.
In the context of the government's advanced Energy Development Roadmap-2081 that aims to generate an additional 25,000 megawatts electricity within the next decade, IPPAN is proud to announce the ninth edition of its flagship event, Power Summit 2025, scheduled to take place on October 15–16, 2025 (Ashoj 29 and 30). The theme of this Power Summit is 'Mission 28,500 MW: Powering Nepal, Energizing Region'. This edition follows previous successful summits held in 2006, 2007, 2008, 2012, 2013, 2016, 2019 and 2023.
With the government’s target of 28,500 MW by 2035, Nepal stands poised to welcome significant Foreign Direct Investment from around the globe. Today, we are deeply grateful to India for approving the landmark agreement to trade 10,000 MW of electricity with Nepal, which is a major step forward in our energy cooperation, and we look forward to the benefits it will bring to both the countries. This vision will open doors to multiple opportunities from development of the Cross Border Energy Trade and Joint ventures, encouraging equity investments in existing Hydropower projects and Debt financing for Hydropower Projects, leveraging hydropower development expertise, expanding renewable energy technologies and knowledge transfer to the concerned parties, building the capacity and training, conducting joint research and development, financing large scale hydropower projects, strengthening policy support and institutions, creating business opportunities, supply of hydropower equipment and engineering services, modernizing smart grid and transmission system, hydrological forecasting and digitalizing hydropower operations, providing consulting and project management services, initiating carbon trading, facilitating cross-border energy trade and regional integration etc.
Marking huge future investment potentialities in Nepal, I am confident that, with the support of international investors and the private sector, Nepal will continue to make strides toward achieving its energy goals.
The power Summit is being organized on a grand scale under the patronage of the Ministry of Energy, Water Resources and Irrigation of Nepal, with India as the Country Partner through the Embassy of India in Nepal, and in participation of various national and international organizations, agencies, and companies.
Distinguished attendees will include the Honorable Prime Minister of Nepal, high-level dignitaries from multiple countries, subject matter experts, and key stakeholders in the energy ecosystem.
The Summit will bring together investors, officials from diplomatic and development partner missions, government and non-governmental organizations, universities, friendly countries, national and international consulting companies, construction companies, banks and financial institutions, insurance companies, representatives of all stakeholders, eminent personalities, experts, specialists under one roof to support the successful implementation of the Energy Development Roadmap, 2081.
The experts and stakeholders from relevant fields will engage in policy debates, share successes and achievements, and exchange experiences.
It is estimated that more than 1,000 participants from 30 countries will participate in this conference, including national and international experts, high-ranking officials from government organizations, private sector and non-governmental sector stakeholders, as in previous conferences.
IPPAN expects the Summit will be a place to identify Nepal as a green energy developing country by addressing regional and international concerns. These include the implementation of the Energy Roadmap, enhancing the availability of green and clean energy in Nepal and South Asian countries, promoting electricity and carbon trading, developing innovative financial instruments, ensuring energy security, and expanding regional connectivity through cross-border infrastructure development.
The Summit also aims to support Nepal and other South Asian nations in achieving their net-zero emissions targets and fostering sustainable and inclusive energy development. It will also serve as a forum to share experiences and best practices from various countries and development partners, contributing to effective policy-making in Nepal and the region.
The summit will also discuss the policies that Nepal and other countries need to formulate to address challenges such as internal and external infrastructure development and increased consumption, the impacts of climate change and its mitigation, as well as the reduction of damage caused by natural disasters.
The summit, which will focus on these issues and topics, is expected to provide concrete suggestions and guidance for Nepal's sustainable energy development and a strong presence in the regional market.
