Distinguished ministers, esteemed delegates, esteemed members of
IPPAN, honorable guests, and Ladies, and gentlemen,
Namaste, and a heartfelt welcome to each of you.
I am truly delighted to welcome you all to this significant gathering,
which holds great significance for all of us in the presence of
● Hon’ble. Mr. Dipak Khadka, Minister, Ministry of Energy,
Water Resources and Irrigation,
● Dr. Ram Prasad Dhital, Chairman, Electricity Regulatory
Commission,
● Dr. Maheshwar Dhakal, Joint Secretary, CCMD Chief of
Ministry of Forest and Environment
● Hon’ble Mr. Erik Solheim (Former Minister of Norway,
International Green Speaker & Climate Champion,
International Chair, Global Renewable Alliance, also the 6th
Executive Director of United Nations Environment Program)
● Mr. Sushil Pokharel, Vice President, International
Hydropower Association
● Mr. Ashok Kumar: Senior Manager, Stakeholders
Management, Global Carbon Council
● and Mr. Kavin Kumar Kandasamy, CEO of ProClime.
Your valuable presence today is a testament to the enduring
friendship and cooperation between our nations, and we are deeply
honored to have you with us.
Today, we have gathered here to discuss a topic of utmost
importance: “Unlocking Green Monetization of Nepal’s Hydropower” in
collaboration with the International Hydropower Association and
ProClime. In today’s era, we believe that energy cooperation in carbon
trade and investment has the potential to reshape the future of our
region, and it is through platforms like these that we can explore,
understand, and harness this immense potential.
Hon’ble Mr. Solheim, drawing upon your extensive experience in the
diplomatic arena, you have been instrumental in charting the course
for facilitating these investments in Nepal’s energy sector and energy
trading between our nations. We are eager to hear from you and gain
insights about your experience in Carbon Trade, Climate Investment
and International Experience in Hydropower Sector.
Nepal is blessed with abundant water resources. With over 6,000
rivers and an estimated hydropower potential of around 1,20,000 MW
including a 48.000 MW storage project. However, as of today, we have
harnessed only a fraction of this potential, with an installed capacity of
around 3,500 MW, out of which 2700 MW is being contributed by the
Private companies. The under-construction hydropower capacity is
4000 MW, on the stage of financial hydropower capacity is 4000 MW
and in the development phase, the hydropower project is around
20,000 MW from the Private sector.
In light of recent significant developments that have recently been
approved by the Government of Nepal. The Cabinet has passed a
decision to target the generation of 28,500 MW of electricity by 2035,
a highly commendable and forward-thinking initiative. Of this total,
15,000 MW is planned for export to our neighboring country, India,
while the remaining 13,500 MW will be utilized domestically.
This ambitious plan presents a remarkable opportunity for investors in
a variety of sectors, including insurance, banking, construction,
education, healthcare, infrastructure, and, of course, energy. With an
estimated investment of approximately $46 billion USD, this initiative
offers a wealth of prospects for international investors seeking to
explore Nepal’s expanding market. We believe this is a pivotal
moment for fostering further collaboration and investment in Nepal,
and IPPAN is fully committed to working together with global partners
to support the development and prosperity of our country.
Nepal’s strategic location between India and China presents a
tremendous opportunity for cross-border electricity trade, which can
significantly boost our foreign exchange earnings. The signing of
power trade agreements (PTAs) with India and discussions with China
for cross-border electricity trade are positive developments.
Investment in hydropower requires necessary investments. While the
government plays a crucial role in facilitating policies, private sector
participation is essential for rapid growth. To attract both domestic and
foreign investors, Nepal must ensure policy stability, enhance
infrastructure, streamline bureaucratic procedures, and offer
incentives such as tax holidays, concessional financing, and
guaranteed power purchase agreements.
The private sector has emerged as a key player in Nepal’s
hydropower development. So IPPAN is very interested to involving
carbon trading, and we are trying to partner with many countries’
carbon trading-related companies. But, to fully realize this potential,
we must attract the necessary investments. This requires a stable
policy framework, enhanced infrastructure, streamlined processes,
and incentives to encourage both domestic and foreign participation.
The private sector is already playing a pivotal role in Nepal’s
hydropower development, and IPPAN is committed to advancing
carbon trading initiatives, exploring partnerships with carbon trading
companies, and lobbying for supportive policies and regulations.
Nepal is at a critical juncture where hydropower can drive not just
sustainable economic growth but also the development of a thriving
carbon market, enhance regional trade, and attract vital investments.
With collective effort, strategic planning, and strong policy support, we
can position Nepal as a regional powerhouse in clean energy,
benefiting not just our nation but contributing to the global effort for a
greener future.
Today’s event is a platform to discuss how Nepal can unlock its
potential in carbon trade and investment. We firmly believe that by
leveraging renewable energy, particularly hydropower, Nepal can
generate carbon credits under mechanisms such as the Clean
Development Mechanism (CDM) and voluntary carbon markets, thus
attracting additional funding and enhancing the financial viability of our
energy projects. Several hydropower projects in Nepal can attract
additional funding and make energy production more financially viable
by monetizing carbon reductions. We believe that Nepal should
actively participate in international climate agreements and ensure the
implementation of policies that promote carbon trading effectively.
I would like to take a moment to express our sincere gratitude to the
International Hydropower Association and ProClime and the esteemed
members of IPPAN for their continued partnership
Ladies and gentlemen, as we embark on this journey of knowledge
sharing and collaboration, let us keep in mind the tremendous
potential that lies before us. Together, we can navigate the challenges
and seize the opportunities that energy cooperation presents not just
for Nepal but for India, Norway, and the global community. Let us
engage in meaningful discussions and forge new partnerships that will
contribute to a brighter, more sustainable future for all.
Once again, a warm welcome to every one of you, and we look
forward to a productive and insightful interaction.