Nepal’s water resources, particularly its hydropower potential, hold the promise of transforming the nation’s economy and positioning it as a regional energy hub. With over 6,000 rivers and tributaries flowing through the country, Nepal has an estimated 83,000 MW of untapped hydropower capacity, a resource that could alleviate chronic power shortages, boost exports to neighboring markets, and stimulate economic growth.
However, despite this immense potential, several challenges impede progress. Political instability and bureaucratic red tape within Nepal have slowed the pace of hydropower development. Moreover, the country finds itself at the heart of a geopolitical competition between China and India, each vying for influence through infrastructure investment and development projects. These dynamics create both opportunities and risks, as Nepal must carefully navigate foreign partnerships to ensure equitable and sustainable growth. At the same time, natural hazards such as landslides, monsoonal flooding, and earthquakes exacerbate the risks of large-scale hydropower projects, making careful planning and mitigation strategies critical.
Photo: Likhu-A Hydropower Project; Likhu River, Ramechhap District, Nepal, April 2024.
The Nepal Water Initiative investigates these challenges through a combination of fieldwork, data analysis, and policy reviews. By analyzing hydropower investment data, stakeholder interviews, and government policies, we aim to uncover how regulatory hurdles, geopolitical pressures, and infrastructure constraints shape Nepal’s development trajectory. This research also explores the socio-economic impacts of hydropower projects, particularly on local communities, who often face displacement, loss of traditional livelihoods, and ecological disruptions as a result of these projects.
Photo: Swayambunath Temple, Kathmandu, Nepal, May 2023.
