Nepal and Bhutan seek Indian investments for hydropower projects

Officials from Nepal and Bhutan said Tuesday that they are looking for Indian investment to increase their hydroelectric production and export surplus electricity to New Delhi.

India is seeking renewable energy to drive its economic growth. It aims to achieve net zero emissions in 2070. Nepal and Bhutan export surplus power to India, namely 2,070 Megawatts and 700 Megawatts respectively.

Both nations are looking for investments to help them meet their energy targets.

Officials said that Bhutan wants to have 25 gigawatts of power generation capacity by 2040 - 20 GW of hydro and 5 GW solar - while Nepal wants 28 GW in 10-12 years.

Chhewang Rinzin said that in order to achieve the target, Druk Green Power Corp., Bhutan's state-owned energy company, needs to access financing from Indian banks and the Indian market.

Druk Green has signed agreements with Indian private companies such as Tata Power and Adani Group for the construction of hydroelectric projects.

Rinzin stated that Bhutan would allow 49% of private investment into its hydropower project, and if necessary, it might consider increasing the limit in order to reach its 2040 goal.

Nepal is able to produce 3,000 MW per year, 95% of which comes from hydro.

Kul Man Ghising Taman, managing director at Nepal Electricity Authority, says that private Indian investment is needed to develop potential projects.

Tamang stated that Nepal's hydropower is open to private companies, and that there are no restrictions on investment. He added that several Indian companies including the Adani Group are working on different projects at various stages of development. Sethuraman N.R., Nidhi V.R. and Shakesh Kuber edited the article.

(source: Reuters)