Nepal’s hydropower regulation and challenges for offshore financing

Landlocked between China and India, the Federal Democratic Republic of Nepal has strong prospects for hydropower expansion that have long been recognized by development agencies, developers and investors alike. However, only around 800 MW of Nepal’s hydropower potential of 43 000 MW is exploited, representing approximately 90 per cent of Nepal’s total current generation capacity. This paper demystifies the law, procedures and regulations governing the development of new hydro in the country.