Investment in Hydroelectric Energy in Nepal

Abstract

The first power station was established in Pherping (500 kw) in 1911 A.D. From this time the present achievement is insufficient for recent electricity demand of Nepal. Energy sector in Nepal is dominated by conventional type of fuel. Ultimately the modern economic development will be stagnant cause of electric energy. So this study has attempted to find out the truth about electric energy situation of Nepal. NEA is only one public enterprise for hydro energy generation and distribution in Nepal. Although hydro electric fuel consumption occupies about the 1.82% share in total energy consumption in 2005, the share of the traditional fuel is estimated about 88% in 2005. So relating upon the present energy scenario and existing data availability, descriptive research methodology is designed to carry out the findings of research. The whole data are collected through published and unpublished secondary sources. Many water related acts and polices have made investment friendly. The government is continuing investment in hydro power sector since the first five-year plan (1956-1961) to 10th plan. The private and foreign investor's are attracted after the implementation of liberalization policy in Nepal. Now, middle Marsyangdi (70 MW) Kulekhani III (14MW) and Chameliya (30mw) are the major hydropower projects which are under construction.