Current HDP objectives and amendments needed

The Hydropower Development Policy 2001 is still the base policy, and its objectives are given below. Newer documents (such as the Ministry of Energy's White Paper of 2018 and the energy sector development plans) repeat similar aims.

Objectives

• Generate low-cost, reliable electricity from water resources and supply it throughout Nepal at an affordable price.
• Link electricity with industrial, agricultural and other economic activities.
• Extend rural electrification.
• Develop hydropower as an export commodity.
• Protect the environment.

Amendments needed

• Storage and pumped storage: Include clear provisions and incentives, because Nepal needs dry-season energy and peaking power.
• One-window clearance: Set fixed time limits for licences, IEE/EIA, forest and land approvals.
• Federal structure: Define the roles of federal, provincial and local governments in licensing, royalty and revenue sharing.
• PPA and tariff: Make a bankable, standard PPA with a fair tariff, separate dry- and wet-season energy prices, and deemed generation for grid delays.
• Transmission: Require NEA or a transmission company to build lines on time, or let developers build them and recover the cost.
• Power trade: Add a clear export policy, cross-border lines and market access.
• Local benefit sharing: Shares for local people, royalty to the project area and resettlement rules.
• Climate, sediment and disaster risk to be considered in planning and design.
• Financing: Support for domestic financing, long-term loans and risk guarantees.