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Institutions in Nepal's hydropower sector

Short answer

Key bodies: MoEWRI (policy), WECS (planning), DoED (licences), NEA (generation/transmission/distribution and PPA buyer), ERC (tariff regulation), IBN (large investment), AEPC (micro-hydro), DHM (data), Forest Ministry (IEE/EIA). Private IPPs develop projects under PPAs with NEA.

Describe the institutional set-up (government organizations and their responsibilities) in hydroelectricity development in Nepal, with a flow chart.

The hydropower sector in Nepal is managed by government bodies that make policy, issue licences, carry out studies, build projects, regulate the sector and operate the power system.

Organisations and responsibilities

  • Ministry of Energy, Water Resources and Irrigation (MoEWRI): Makes policy, plans and laws for energy and water; supervises the institutions below.
  • Water and Energy Commission Secretariat (WECS): Studies and plans the water and energy resources; prepares master plans and gives policy advice.
  • Department of Electricity Development (DoED): Issues survey and generation licences, monitors licence holders, collects royalty, and promotes private investment.
  • Nepal Electricity Authority (NEA): Generates, transmits and distributes electricity; buys power from IPPs through PPAs; operates the national grid; plans and builds big projects.
  • Electricity Regulatory Commission (ERC): Regulates the tariff and the quality of supply and service, and settles disputes.
  • Investment Board Nepal (IBN): Facilitates, approves and monitors large investment projects.
  • Alternative Energy Promotion Centre (AEPC): Promotes micro-hydro and renewable energy in rural areas.
  • Department of Hydrology and Meteorology (DHM): Collects rainfall and flow data.
  • Ministry of Forests and Environment: Approves IEE/EIA reports.
  • Private sector and associations: IPPs, IPPAN, companies such as Chilime, and other developers.
  • Provincial and local governments: License and develop small projects within their areas.

Flow chart

                 Government of Nepal
                          |
                MoEWRI (policy, law)
                          |
   +----------+-----------+-----------+----------+
   |          |           |           |          |
  WECS       DoED        NEA         ERC        AEPC
 (plan)   (licence)  (build,      (tariff)    (micro
                      operate,                 hydro)
                      grid)
                          |
          Private developers (IPPs) via PPA

✓ Answer checked by Claude Opus 5.5 (high effort)

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