The years 2022 and 2023 are opening a new chapter in Nepal's hydropower sector with some encouraging developments and breakthroughs taking place. The Nepal Electricity Authority (NEA) started exporting surplus power to India, the much-debated Millennium Challenge Corporation (MCC)-Nepal Compact moved toward the implementation phase, Nepal and India agreed to construct two more cross-border transmission lines, and Bangladesh and China formally proposed to buy electricity from Nepal. The biggest breakthrough during this period is power export to India. Nepal earned over Rs 11bn by selling excess power to India from June-December 2022.

There has been a huge surge in domestic electricity generation. A total of 735 MW of electricity was added to the national grid in FY 2021/22. NEA has projected that 808 MW of electricity will be added to the national system by the end of FY 2022/23. The latest data shows 300 MW of electricity has already been connected to the national grid in the first seven months of the current fiscal year. Nepal’s installed electricity production capacity has reached 2,400 MW.

Government officials estimate that Nepal will become self-sufficient in electricity even in winter in the next two years given that all the under-construction projects start power generation. As the electricity supply will be more than the domestic demand, the country can aim for more power export. The Department of Electricity Development (DoED) has issued construction licenses to 17 hydropower projects with a combined capacity of 519.24 MW till mid-February, 2023. Similarly, the department has issued survey licenses to 14 hydropower companies with a combined capacity of 1412.07 MW. DoED also issued survey licenses to 12 companies that have proposed to generate 236.9 MW of solar electricity. There was renewed Indian interest in Nepali hydropower with NHPC Limited signing an MoU to study and develop two hydropower projects with a combined capacity of 1200 MW. The 750 MW West Seti Hydropower Project and 450-megawatt Seti River (SR-6) are worth a combined USD 2.4 billion. In May 2022, Nepal and India signed an agreement to develop the 490-megawatt Arun-IV Hydropower Project which will be developed as a joint venture between India’s state-owned Satluj Jal Vidyut Nigam (SJVN) and Nepal Electricity Authority (NEA), with SJVN having a majority share in the company that will operate the proposed project. Two more cross-border transmission lines between Nepal and India The recently concluded 10th joint secretary-level Joint Working Group and the secretary-level Joint Steering Committee meeting between Nepal and India agreed to increase power trade between the two countries and develop more cross-border transmission lines. Currently, the southern neighbor has allowed Nepal to sell 452.6 MW of electricity generated by 10 hydropower projects in the Indian power market. But the approvals given to the 10 hydropower projects need to be renewed every year. India has agreed to review the existing mechanism following a request from Nepal of giving such approvals for at least five years. Nepal and India also agreed to develop two more 400kV cross-border transmission lines--Inaruwa (Duhabi- Purnia (Bihar) and New Lamki (Dodhara)-Bareli. According to the press statement of the ministry, the first one will be completed by 2027-28 and the next one will be completed by 2028-29. Likewise, the two sides also agreed that the 400kv Butwal-Gorkhapur Cross-border Transmission Line would be completed by March 2025. For this, the two countries agreed to sign an implementation and transmission service agreement very soon. China officially proposes to buy electricity from Nepal China has proposed to purchase electricity from Nepal. The northern neighbor wants to purchase power for its autonomous state Tibet which borders Nepal. The Chinese side formally made a proposal to Nepal in the first meeting of the Joint Working Group formed for energy cooperation between Nepal and China held in Kathmandu last Tuesday. According to Nepali government officials close to the matter, China wants to import electricity from Nepal, especially for the winter season. But, both sides are yet to reach any understanding in this regard. "This is the first time China has officially proposed to purchase electricity from Nepal," said an official who took part in the meeting. The meeting of the Joint Technical Group also discussed the proposed Ratamate-Rasuwagadhi-Kerung Transmission Line Project. NEA has already completed a feasibility study of the 400 KV transmission line connecting Nepal and China. Currently, an environmental study of the transmission line is being carried out. NEA Engineering Company, a subsidiary of NEA, is taking charge of the environmental impact assessment (EIA) of the project.   Construction licenses issued for hydropower project in 2022/23 (First seven months)

No	Project	Capacity (in MW)	Developer
1	Ghunsa Khola HEP	77.500	Remit Hydro Ltd
2	Simbuwa Khola HEP	70.300	Simbuwa Remit Hydro Ltd
3	Dudh khola HEP	65.000	Sita Hydropower Company Pvt.Ltd.
4	Jaldigad	21.000	Shangrila Hydropower Pvt. Ltd.
5	Middle Trishuli Ganga nadi	15.625	Perfect Energy Developmnet Pvt. Ltd, KTM,
6	Upper Madi 0 HEP	43.000	Annapurna Power Company Pvt. Ltd
7	Middle Mailung (cascade) HEP	13.000	Mathillo Mailung Khola Jalbidhyut Ltd
8	Aayu Malun Khola HEP	21.000	Puwa Khola 1 Hydropower Limited
9	Upper Kabeli-2 HEP	15.000	Arun Valley Hydropower Development Company Limited
10	Palun khola 1 HEP	30.000	Trust Energy Pvt. Ltd.
11	Palun Khola Small HEP	21.000	Palun Khola Hydropower Pvt. Ltd.
12	Syarpu HEP	3.300	Syarpu Power Company Limited
13	Bhotekoshi 1 HEP	40.000	Shailung Power Company Limited
14	Luja Khola HEP	24.800	Silk Power Pvt.Ltd.
15	Upper Pikhuwa Khola HEP	4.900	Sumnima Hydropower Company Pvt. Ltd.
16	Sani Bheri HEP	44.520	Expert Hydro Investment Pvt. Ltd
17	Siwakhola HEP	9.300	Mewa Developers Pvt. Ltd

Survey licenses issued for hydropower project in FY 2022/23 (First seven months) 

1	Mathillo Maya Khola Hydropower Project	5.000	Waleng Tumhok Hydro Power Pvt. Ltd.
2	Lungri khola PROR HPP	22.000	Tripura Sundari hydro energy pvt. ltd.
3	Chepe Khola Cascade Hydropower Project	2.000	Dynamic Hydro Energy Pvt. Ltd
4	Marsyangdi River PRoR Hydropower Project	99.800	M.A. Power Pvt. Ltd.
5	Trishuli Khola Small Hydropower Project	8.000	Hydro Concern Pvt Ltd
6	Super Sabha Khola A HPP	9.550	Sankhuwa Sabha Development Pvt. Ltd.
7	Pelma Khola PRoR HPP	40.000	Pelma Hydropower Project Pvt. Ltd.
8	Upper Sani Bheri PRoR HEP	60.000	Pelma Hydropower Project Pvt. Ltd.
9	West Seti Hydropower Project	750.000	NHPC Limited
10	Lower Badigad HEP	18.730	Aviyan Hydropower Pvt. Ltd
11	Mathillo Marsyangdi -2 Hydropower Project	327.000	Himtal Hydropower Company Pvt. Ltd
12	Marsyangdi - 7 Hydropower Project	50.000	Beyul Energy Nepal Public Limited
13	Middle Iwa Khola Hydropower Project	15.000	Unitech Hydropower Company Pvt. Ltd.
14	Lapa Khola Hydropower Project	4.990	Harmony Initiatives Pvt. Ltd.

Survey licenses issued for solar project in FY 2022/23 (First seven months)  

1	Krishnapur Solar PV Project	10.000	Green Village Ventures Pvt. Ltd.
2	Surunga Utility Scale Grid- Tied Solar Project	10.000	Time Solar Energy Pvt. Ltd.
3	Godawari - Attariya Solar Electricity Project	40.000	Hive Nepal Pvt. Ltd.
4	Pahalmanpur Solar Electricity Project	30.000	Hive Nepal Pvt. Ltd.
5	Bhurigau Solar PV, Project	40.000	Hive Nepal Pvt. Ltd.
6	Nepalgunj Solar PV Project	25.000	Hive Nepal Pvt. Ltd.
7	Kohalpur Solar PV Project	40.000	Hive Nepal Pvt. Ltd.
8	Gulariya Solar PV Project	25.000	Hive Nepal Pvt. Ltd.
9	Tulsi Solar Electricity Project, Dang	7.500	Vinayak Solar Private Limited
10	Gandak Saurya Vidyut Project, Nawalparasi	5.800	Nepal Electricity Authority
11	Jhupra Saurya Vidyut Project, Surkhet	2.000	Nepal Electricity Authority
12	Madhya Marsyangdi Solar Electricity Project, Lamjung	1.600	Nepal Electricity Authority

Power projects connected to national grid in FY 2022/23  

Project	Developer	Capacity (in MW)
Simara Solar Project	Api Power Company	1
Grid Connected Solar PV Project	National Solar Power Co. Pvt. Ltd	5
Dordi Khola HEP	Himalayan Power Partner  Pvt. Ltd	27
Chepe Khola Small	Aashutosh Energy Pvt. Ltd	8.63
Dordi-1 Khola	Dordi Khola Jal Bidhyut Company	12
Upper Balefi A	Balefi Hydropower Company	36