Nepal’s Far West region holds vast hydropower potential, but only a fraction of it has been connected to the national grid, highlighting deep structural and policy challenges in the energy sector.
Despite an estimated capacity of 7,720 megawatts, just 166 megawatts from the region are currently feeding into the national grid. Officials and energy experts say the gap is largely due to delays in transmission line construction, legal hurdles, and slow project approvals.
At a recent interaction organised by the Independent Power Producers’ Association of Nepal, stakeholders pointed out that while dozens of projects are in various stages of development, progress remains uneven. Over 5,700 megawatts worth of projects are under study, licensed, or awaiting construction, but many are yet to move forward.
Transmission infrastructure has emerged as the biggest bottleneck. In many cases, hydropower projects advance faster than the planning and construction of transmission lines, leaving completed or near-completed projects unable to supply electricity.
Developers also highlighted regulatory challenges, including the need to navigate multiple ministries and departments for approvals. Calls have grown for a one-door policy to streamline processes, along with legal reforms to ease restrictions, particularly in forest and protected areas.
There is also concern that delays could cost Nepal future export opportunities, especially to neighbouring countries like India and Bangladesh. Experts warn that if hydropower development continues to lag, alternative energy sources may fill the gap.
While the private sector already plays a major role in electricity generation, stakeholders stressed the need for stronger coordination between government agencies and investors to unlock the region’s full potential.
For now, the Far West remains a region rich in energy resources but still waiting to turn that potential into power.