The new Technical Cooperation Project, “The project for the Integrated Power System Development Plan of Nepal” was agreed between The Japan International Cooperation Agency (JICA) and the Ministry of Energy, Water Resources and Irrigation. The project will contribute to the achievement of SDGs 7 “Ensure access to affordable, reliable, sustainable and modern energy for all”.
Nepal will be bearing a problem of accommodating the rapidly increasing surplus of domestic power generation in near future. The project aims to develop the capacity of the policy and organizational entities necessary for smooth and sustainable export of the electricity generated by domestic hydropower to Neighbouring countries.
The project will also harmonize the existing Transmission Master Plan and other plans (i.e Distribution and Generation) based on the prospective project for domestic/international market targetted to the year 2040.
The project will serve as a catalyst for incentivizing the private sector and FDI by analyzing the demand and supply forecast at the different economic growth rates and probable demand at the neighboring market for effective investment. It also aims at enforcing the rules and regulations, and implementation of the development plan in a harmonized manner with respect to formulate the governance mechanism, vision and guiding principle for power sector development.