Investment Opportunity
Energy & Hydropower
Nepal sits atop one of the world's largest untapped clean energy reserves — 83,000 MW of hydropower potential in a nation that has installed barely 3%. The investment opportunity is generational.
83,000 MW
Theoretical Potential
42,133 MW
Economically Feasible
~3,000 MW
Currently Installed
USD 6.8B
Investment Target by 2030
The World's Next Great Energy Frontier
Nepal's rivers descend from the Himalayas with some of the steepest gradients on earth, creating ideal conditions for run-of-river and storage hydropower at extraordinary scale. The country has been exporting power to India since 2021 and has signed agreements to supply Bangladesh.
The Government of Nepal has set a target of 10,000 MW of installed capacity by 2030 and 15,000 MW by 2035. This requires approximately USD 6.8 billion in investment over the next decade — creating a pipeline of projects across all sizes and risk profiles.
South Asia's energy deficit stands at over 400 GW. Nepal's geographic position between India (1.4 billion population) and China provides unmatched power export potential, backed by a formal Power Trade Agreement with India signed in 2021.
3rd
Largest hydropower potential in the world
2021
Year Nepal began commercial power exports to India
500 MW+
Bangladesh agreed purchase commitment
10 yrs
Income tax holiday for hydropower projects
Mega Projects Open for Investment
Nepal's Investment Board has identified these as priority hydropower projects. Each offers distinct risk profiles, offtake structures, and return timelines.
Budhi Gandaki Hydropower Project
A storage-type project that will regulate seasonal flows, enabling year-round power generation and flood control. Designated a national pride project by Government of Nepal.
Capacity
1,200 MW
Est. Value
USD 2.5 Billion
Arun III Hydropower Project
Developed by SJVN (India) under a 30-year concession. One of the largest run-of-river projects in Nepal, with power export agreements to India.
Capacity
900 MW
Est. Value
USD 1.4 Billion
West Seti Hydropower Project
A storage-type project on the Seti River with significant flood control and irrigation benefits. Offers power trading opportunities to India and Bangladesh.
Capacity
750 MW
Est. Value
USD 1.6 Billion
Pancheshwar Multipurpose Project
A joint Nepal-India project under the Mahakali Treaty. Among the largest multipurpose projects in South Asia, providing irrigation, flood control, and massive power generation.
Capacity
5,600 MW
Est. Value
USD 6.8 Billion
Karnali Chisapani Multipurpose Project
One of the most ambitious hydropower projects globally. A storage scheme that would regulate the Karnali River, supplying power across South Asia.
Capacity
10,800 MW
Est. Value
USD 15+ Billion
Lower Arun Hydropower Project
A run-of-river project downstream of Arun III, leveraging existing infrastructure and offering enhanced returns. Attractive to IPPs and development finance institutions.
Capacity
669 MW
Est. Value
USD 1.2 Billion
Upper Tamakoshi Hydropower Project
Nepal's largest domestically-financed hydropower project, fully operational since 2021. Demonstrates Nepal's capacity to develop and operate large-scale projects independently.
Capacity
456 MW
Est. Value
USD 615 Million
Dudhkoshi Storage Hydropower
A storage project on the Dudhkoshi River providing peak power during dry season — high commercial value due to seasonal supply gaps in regional markets.
Capacity
635 MW
Est. Value
USD 1.1 Billion
Why Invest in Nepal's Energy Sector
Enormous Untapped Resource
Only 3–4% of Nepal's economically viable hydropower potential has been developed — the single largest untapped clean energy resource in Asia.
Guaranteed Offtake
Power Purchase Agreements (PPAs) with Nepal Electricity Authority and cross-border export agreements with India and Bangladesh provide revenue certainty.
Tax & Fiscal Incentives
10-year tax holiday on hydropower projects, 50% rebate for the following 5 years, exemption on customs duty for construction equipment.
Strategic Export Position
Nepal signed a long-term Power Trade Agreement with India in 2021. Bangladesh has expressed interest in 500 MW+ imports. Regional demand is virtually unlimited.
Carbon Market Opportunity
Clean hydropower qualifies for carbon credits under the Paris Agreement. Nepal's carbon market framework is under development with UNFCCC support.
100% FDI Permitted
Full foreign ownership allowed in hydropower projects. Profit repatriation guaranteed under FITTA. Independent Power Producer (IPP) model well established.