This detailed study report emphasizes on investment prospects and challenges in the hydro power sector.
As big hydropower projects which are needed to fulfill the current energy demand of Nepal need huge investments, the domestic investment is not sufficient and Foreign Direct Investment (FDI) is lagging owing to several reasons which are pointed out in this report. Hence, recommendations are proposed based on the specific challenges prevailing in this sector.
“Energy is the power that drives the country’s economy. It is indispensable force for driving all economic activities. The relationship between energy consumption and economic growth is positive and strong (Chinedu & Gbadebo, 2009). In Nepal’s context, hydroelectricity is the only source of energy which has potential to fuel our economic growth. It can replace the expensive fossil fuels which the country is forced to import at expensive price and save us billions of dollars. Besides, it creates a sustainable industrial base that runs on clean energy and does not pollute environment. It is reliable, adequate and affordable source of energy which is essential for achieving growth.” – An excerpt