Experts Stress Clean Energy as the Only Pathway for a Sustainable Future

Experts Stress Clean Energy as the Only Pathway for a Sustainable Future

Experts from Nepal and around the world have emphasized that clean energy is the only viable solution for a sustainable future. Speaking at the Nepal Infrastructure Summit 2024, organized by the Government of Nepal and the Confederation of Nepalese Industries (CNI), industry leaders, policymakers, and energy experts highlighted the critical role of clean energy in shaping Nepal's future during a session focused on "Energy and Water Resources." Kumar Pandey, Chairman of National Hydropower, noted that Nepal has witnessed significant progress in clean energy over the past decade. He attributed this positive shift to large-scale investments from the private sector, which have transformed the energy landscape of the country. Pandey stated, “Investment in production has increased, and consumption has risen. The private sector has played a major role in this." However, he also pointed out the legal and procedural challenges hindering energy development, particularly delays in the passage of the Electricity Act and issues related to tree cutting and land acquisition. Pandey believes resolving these issues would facilitate smoother operations. Pandey further suggested prioritizing reservoir-based and semi-reservoir hydropower projects, as the country’s current electricity system is largely based on river flows. With the government's target of producing 28,500 MW of electricity by 2035, Pandey stressed the need for more investment in the sector. Former Joint Secretary Keshav Dhwaj Adhikari provided insight into Nepal’s global standing, revealing that the country ranks 115th in global electricity consumption. Nepal’s total installed capacity has now reached 3,062 MW, with the private sector playing a dominant role by producing 2,436 MW. Meanwhile, Chen Yong, President of Huawei Technologies' Digital Smart PV division, underscored that green transformation is the future. “All countries have set targets to reduce carbon emissions, and green transformation is now the only option,” he said. Huawei is investing in various green initiatives, including electric vehicles, charging stations, ICT technology, and energy internet infrastructure, marking a clear commitment to clean energy. Yogjing Hong, Managing Director of Nepal Water and Energy Development Company, echoed similar sentiments, highlighting Nepal’s vast hydropower potential, calling it “a critical resource for the future.” Sujata Gupta, Energy Sector Director at the Asian Development Bank (ADB), pointed out that while private investment is currently focused on production, Nepal requires substantial investment in transmission lines. ADB has a 40% stake in Nepal’s transmission line projects and remains committed to facilitating the nation’s electrification. Gupta noted that 98% of Nepal has already been electrified, and ADB is proud to be a key partner in this transformation. Ganesh Karki, President of the Independent Power Producers’ Association of Nepal (IPPAN), remarked that the government’s target of producing 28,500 MW by 2035 is achievable. He mentioned that Nepal has already signed an agreement with India to export 10,000 MW of electricity within the next decade and is currently negotiating similar agreements with Bangladesh. However, achieving these targets will require an estimated investment of NPR 4.6 trillion, emphasizing the need for policy facilitation to ease investment processes. Mark Tissot, Senior Investment Expert at GIZ, reaffirmed GIZ’s commitment to supporting Nepal’s energy sector, noting that GIZ is working with private sector companies to drive technology development, particularly in hydropower and transmission lines. Dr. Ram Prasad Dhital, Chairman of the Electricity Regulatory Commission, who chaired the session, shared the government’s vision for creating a competitive environment in the energy sector. "We are working to develop transmission lines as a business model and are exploring ways to create a competitive environment," he said. Dhital highlighted that while production is increasing, transmission infrastructure remains insufficient. To address this, the Regulatory Commission is working on a cost-recovery model and engaging private investors to develop a comprehensive plan for transmission line development, including reservoir-based and hydro-pump storage models. The session concluded with a shared consensus on the urgent need to focus on clean energy initiatives, improve investment facilitation, and promote policy reforms to ensure that Nepal can meet its ambitious energy goals while contributing to global efforts to reduce carbon emissions