By Nirmal P. Acharya
Nepal has always been regarded as a small and poor country by other nations, and Nepal has long considered itself a small and poor country. Can’t Nepal have a “powerful nation dream” then?
I would like to say: Nepal deserves to have a “powerful nation dream”. One of the key factors determining whether a country can become powerful is whether it can possess sufficient strong energy resources. And Nepal indeed can be an energy powerhouse.
Backed by the Himalayas, Nepal is known as the “Asian Water Tower” and has a theoretical hydropower potential of approximately 83,000 megawatts. This natural endowment can truly be regarded as a huge “national asset”.
Based on its theoretical hydropower potential of approximately 83,000 megawatts, Nepal can “build an economy around electricity”, constructing a regional hub that integrates energy, trade, industry and digitalization.
The main strategic directions include:
1. Regional power trade: Becoming the “battery of South Asia”. Utilizing geographical advantages to become a “battery” of the South Asian power grid, complementing seasonal energy sources (such as solar energy in India). Currently, it has achieved exports to India (targeting 10,000 megawatts) and exports through India to Bangladesh (already achieved 40 megawatts), and the long-term goal can be set at 15,000 megawatts of export capacity by 2035.
2. Energy structure upgrading: From “mainly run-of-river” to “regulated reservoir”. Currently, about 12,000 megawatts of ongoing projects are mostly run-of-river power stations that generate electricity during the rainy season and sharply decrease during the dry season. In the future, priority should be given to promoting large reservoir projects to achieve full power supply during the dry season and also to accelerate the layout of battery storage and green hydrogen projects to enhance energy security.
3. Infrastructure and funds: From “single-point development” to “corridor connectivity”. Focus on building the 400-kilovolt Karnali corridor to open up the western region and the cross-border channel between Nepal and Bangladesh. In terms of funds, in addition to the 46.5 billion US dollars allocated in the national plan, more foreign exchange from the “People’s Hydropower Project” should be absorbed, and China and other foreign investments are also welcome to participate.
4. Industrial Upgrading: From “selling electricity” to “selling computing power”. Utilize stable and clean electricity to attract high-energy-consuming industries. Besides developing electric vehicles and green hydrogen production, the most innovative plan is to convert hydropower into “sovereign Al computing center” computing power services, and generate greater economic benefits by exporting “high-value digital services” instead of simply selling electricity.
The key to this strategic transformation lies in whether it can successfully shift from building runoff-powered hydropower stations for the rainy season to “reservoir-type” power stations that can supply power throughout the year, and truly gain control over regional energy pricing.
At this point, I can’t help but ask: “Did I make any sense in what I said?”
The world is currently in a “period of unprecedented major changes”. At this moment, the best way for Nepal to survive and develop is to immediately have a “dream of becoming a powerful country”.
Login to add a comment