FACE-TO-FACE
KATHMANDU, NOVEMBER 19
At a time when climate crisis has taken centre stage in global debates and as countries try to reduce their dependence on fossil fuel, Nepal's hydropower can play a stabilising role in the ambitious regional plans to produce massive solar energy outputs by 2030, according to Kulman Ghising, managing director of Nepal Electricity Authority.
"Solar energy, while abundant, is intermittent," Ghising said in an exclusive interview with The Himalayan Times. "By contrast, our hydropower can provide a steady base load, particularly during peak evening hours when solar output drops."
While seasonal fluctuation in energy production remains a challenge, with India's expertise in renewable energy integration, 'we're learning to manage these complexities more effectively', according to him. "India's assistance has been invaluable, particularly in cross-border power-sharing frameworks and real-time data exchange."
Ghising also stressed on collaborative reservoir management between Nepal and India, which 'can bring relief, ensuring a steady water supply while reducing the impact of extreme weather'.
Ghising has been instrumental in reshaping Nepal's energy landscape. Known for promoting transparency, accountability, and innovation, Ghising has helped Nepal address chronic power shortages and fostered regional energy trade. In this discussion with Ram Kumar Kamat of The Himalayan Times, Ghising mainly highlights the region's hydropower prospects, India's contributions to power reliability, and Nepal's export ambitions. Excerpts:
THT: Nepal's hydropower sector has witnessed substantial growth in recent years. How do you assess its current state, and what potential do you see for future expansion?
Nepal's hydropower sector has vast potential and is in a pivotal growth phase. Currently, we produce around 3,200 MW of electricity, and an additional 300 MW will come online within weeks. During the rainy season, we generate surplus energy, though winter shortages still require us to import power. This seasonal fluctuation is a challenge, but with India's expertise in renewable energy integration, we're learning to manage these complexities more effectively.
India's assistance has been invaluable, particularly in cross-border power-sharing frameworks and real-time data exchange. The recent Dhalkebar-Muzaffarpur transmission line is a prime example, enabling us to balance our needs by exporting surplus power in monsoons and importing when we face seasonal deficits. This cooperative infrastructure andIndia's regulatory insights have helped Nepal increase power reliability while positioning our country as a future energy exporter.
THT: With such expansion plans, where do you see the role of private sector investment in Nepal's hydropower development?
The private sector is indispensable in realizing our hydropower potential, and Indian developers have been leading the way with both capital investment and technical support. Over the years, we've signed power purchase agreements (PPAs) with various companies, including Indian firms, for over 11,000 MW of power. These agreements, which help secure financing from banks, illustrate how India's successful use of PPAs has shaped our approach.
For example, the Arun III project, an investment led by India'sSatluj Jal Vidyut Nigam (SJVN), has been a model of collaboration. Not only has SJVN provided capital, but it has also shared invaluable insights on project management, risk mitigation, and environmental safeguards. Arun III, nearing completion, showcases how India's support facilitates knowledge transfer and creates capacity for Nepal's power sector.
THT: What infrastructure developments are essential for Nepal to achieve its goal of exporting 10,000 MW?
India and Bangladesh present enormous market opportunities, and India, in particular, has been a crucial partner in making these goals feasible. India's energy demand exceeds 250,000 MW and grows by 20,000 MW annually. Such scale and demand require highly reliable, advanced transmission infrastructure-a field where India's expertise has been transformative.
We focus on crucial transmission projects to meet our 10,000 MW export target. The Dhalkebar-Muzaffarpur line already allows us to export up to 1,200 MW. Meanwhile, the Butwal-Gorakhpur, Inaruwa-Purnia, and Lamki-Bareilly lines, expected to operate within 18 months, will add another 10,000 MW of cross-border capacity. India has generously shared its technical know-how in developing and scaling these projects, from transmission line resilience to grid synchronization. With India's assistance, Nepal is also adopting new standards for high-voltage transmission and investing in digital systems to monitor and manage energy flows, ensuring stability across borders.
THT: Given the rise of renewable energy, how can Nepal's hydropower complement regional solar energy growth?
Hydropower and solar are naturally complementary. The ambitious regional plans to produce massive solar energy outputs by 2030 are pushing the boundaries of renewable integration, and Nepal's hydropower can play a stabilizing role. Solar energy, while abundant, is intermittent. By contrast, our hydropower can provide a steady base load, particularly during peak evening hours when solar output drops.
Innovations like pump storage projects-using solar energy to store water in reservoirs during the day and releasing it at night to generate hydropower-are a promising avenue for collaboration. This synergy balances supply and strengthens regional energy security, a vital factor as countries in the region move toward net-zero goals.
THT: What technological advancements are you adopting in hydropower projects, and how has regional collaboration contributed to these?
The technical advancements shared through regional partnerships, particularly in tunnel construction and remote monitoring, have greatly benefited Nepal. Traditional drilling methods in hydropower projects are time-consuming, so we're increasingly exploring Tunnel Boring Machines (TBM), an approach successfully implemented in several large-scale projects across the region. Though initially costly, TBM technology significantly reduces project timelines, minimizes environmental impact, and offers safer working conditions.
Similarly, remote monitoring systems for hydropower plants, introduced through regional collaborations, allow our teams to control operations from central locations. This shift to digital control has streamlined maintenance, enhanced safety, and cut costs. The willingness to share advancements in TBM and remote management reflects a strong commitment to regional capacity-building.
THT: How does Nepal envision collaboration with neighbouring countries to improve energy security?
Regional grid integration is a powerful tool for energy security, and leadership efforts in this area are inspiring. Commitments to achieving net-zero emissions by 2070 in the region align well with Nepal's hydropower potential, which can support these goals. By integrating grids, we ensure a reliable supply of renewable energy throughout the region, allowing countries to rely less on fossil fuels.
Ongoing development of regional initiatives such as the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) grid envisions a shared energy network across South Asia. As a centrally located powerhouse, regional focus on shared infrastructure-both in policy and technology-creates a win-win situation for all. This grid will allow Nepal to export surplus energy while neighbouring countries benefit from a cleaner, more diverse energy mix.
THT: What role does regulatory policy play in making cross-border power trade more effective, and what can Nepal learn from India's approach?
India's regulatory framework is already highly developed, particularly in cross-border power trade, and its policies have served as a model for us. India introduced a policy for cross-border electricity trade in 2018, followed by a detailed framework in 2019. These initiatives have been instrumental in setting up a predictable and transparent market environment. Nepal and Bangladesh are developing similar regulations, and India's guidance in harmonizing standards across borders has been vital.
Having a synchronized regulatory approach within BBIN (Bangladesh, Bhutan, India, and Nepal) will make it easier to trade power efficiently and fairly. India's experience with single-market bidding in its domestic exchange is something we aspire to replicate across BBIN countries. A unified regulatory framework will allow countries to operate in a shared energy market, making cross-border trade economical and seamless.
THT: How can public-private partnerships (PPPs) drive the next phase of Nepal's energy development?
Public-private partnerships are pivotal, particularly in a capital-intensive sector like hydropower. Our current generation projects operate under the BOOT (Build, Own, Operate, and Transfer) model, which allows private companies to invest, operate, and later transfer ownership. Also, India has been instrumental-many successful PPP projects in India have provided a blueprint for Nepal.
For example, in the Arun III project, Indian stakeholders brought investment and extensive experience in BOOT projects, offering us insights into risk management, timelines, and stakeholder collaboration. India's success with PPPs in energy, especially in high-stakes transmission infrastructure, underscores the potential for private investment in Nepal's power sector.
THT: Can you share some examples of recent collaborations that highlight the potential for future energy partnerships?
Arun III is a remarkable example. Indian investment fully funded the project, yet Nepal receives nearly 22% of the energy for free-a win-win. The Dhalkebar-Muzaffarpur transmission line also highlights successful collaboration; with India's participation, we developed a cross-border infrastructure that benefits both nations.
The Butwal-Gorakhpur transmission project further demonstrates a balanced partnership model. Both Indian and Nepali stakeholders share investment and risks, making it a valuable model for future projects. Such collaborations are redefining how we structure cross-border projects, and we're keen to replicate this success with other initiatives, such as the Lamki-Bareilly line.
THT: How should Nepal manage its water resources to support power trade while addressing regional needs?
As the upper riparian country, Nepal holds unique responsibility and potential. Nearly 45% of the Ganga'sannual flow originates in Nepal, and our reservoirs can help regulate this flow. During monsoons, we can reduce flood risks downstream, while during the dry season, we can enhance water availability for agriculture, river navigation, and energy generation.
India has faced significant flood and drought challenges, particularly in states like Bihar, where Koshi River floods regularly devastate farmland. Collaborative reservoir management between Nepal and India can bring relief, ensuring a steady water supply while reducing the impact of extreme weather. Nepal's natural geography allows us to create reservoirs between mountain valleys, minimizing impact on settlements. India's technical support in hydrology and reservoir management.
