Nepal and Bhutan are actively pursuing Indian investment to expand their hydroelectric output and facilitate the export of surplus power to India, officials from both countries announced at an industry event on Tuesday. This initiative aligns with India's goal of achieving net zero emissions by 2070, as the country looks for renewable energy sources to support its economic growth. Currently, Nepal exports 2,070 megawatts of power, while Bhutan exports 700 megawatts to India.
Both nations aim to attract investments to meet their ambitious power generation targets. Bhutan plans to develop an annual generation capacity of 25 gigawatts by 2040, comprising 20 GW from hydroelectric sources and 5 GW from solar energy. Similarly, Nepal seeks to achieve 28 GW of generation capacity within the next 10 to 12 years.
Chhewang Rinzin, Managing Director of Bhutan's state-run Druk Green Power Corporation, emphasized the importance of Indian investment, stating, “To achieve (our target) we need access to financing from Indian banks, and access to the Indian energy market.” Several Indian private companies, including Tata Power, Adani Group, and Reliance Power, have already signed agreements with Druk Green to develop hydroelectric projects in Bhutan.
In Bhutan, the government permits up to 49% private investment in hydroelectric projects, and there is a willingness to consider increasing this limit to meet the 2040 target. Meanwhile, Nepal possesses an annual capacity of about 3,000 MW of power, with hydroelectric sources accounting for 95% of its energy production.
Kul Man Ghising Tamang, Managing Director of Nepal Electricity Authority, noted that “Nepal's hydro power is open to all private companies and there is no restriction on investment.” He added that various Indian companies, including the Adani Group, are actively engaged in projects at different stages of development in Nepal.
