---
title: "Importance of hydropower development in Nepal"
subject: "Hydropower Engineering"
chapter: 1
key: "semester_7/hydropower_engineering:importance-hydropower-nepal"
source: https://www.bctengineer.com/q/semester_7/hydropower_engineering/importance-hydropower-nepal
site: BCT Engineering
---

# Importance of hydropower development in Nepal

Hydropower Engineering · Chapter 1: Introduction

- Asked in: 2082 Bhadra, 4 marks
- Video: [नेपालको जलविद्युत इतिहास,अनुभव र सम्भावना || hydropower in Nepal](https://www.youtube.com/watch?v=bv5EQkzkqFQ) — Sujan Khanal
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/hydropower_engineering/importance-hydropower-nepal
- Whole chapter: https://www.bctengineer.com/md/semester_7/hydropower_engineering/chapter-1

## Question

Briefly describe the importance of hydropower development in Nepal.

## Short answer

Hydropower provides clean low-cost domestic energy, drives industry and jobs, earns export income, supports rural development, generates royalty revenue, gives multipurpose benefits like irrigation and flood control, and reduces greenhouse gas and firewood use. Nepal has 83,000 MW theoretical and 42,000 MW feasible potential.

## Answer

Hydropower is the most important natural resource of Nepal because the country has about 6,000 rivers with steep slopes and high flows. About 83,000 MW is theoretically possible and about 42,000 MW is economically feasible.

#### Importance
- **Domestic energy:** It gives clean, low-cost electricity for homes, industry, irrigation pumps and transport, and replaces imported petroleum and firewood.
- **Economic growth:** Electricity is the base of industry and trade. Hydropower creates jobs during construction and operation.
- **Export income:** Surplus power sold to India and Bangladesh brings foreign exchange and reduces the trade deficit.
- **Rural development:** Micro and small hydro bring light, communication, education and health services to remote villages.
- **Revenue:** Royalty, tax and dividends go to government and local bodies.
- **Multipurpose benefits:** Reservoirs support irrigation, flood control, fishing and tourism.
- **Environment:** It is renewable and keeps greenhouse gas emission low; it reduces use of firewood and forest loss.
- **Regional cooperation:** Power trade improves relations with neighbours.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Why is hydropower the most important natural resource of Nepal?
   A. Nepal has large coal reserves
   B. Nepal has no other energy
   C. About 6,000 rivers with steep slopes and high flows
   D. Nepal has big oil fields
   Answer: C. Steep, high-flow rivers give about 83,000 MW theoretical potential. (Key point: Resource base)

2. How does export of surplus power help Nepal?
   A. It increases fuel import
   B. It raises foreign exchange and reduces trade deficit
   C. It removes the need for royalty
   D. It reduces jobs
   Answer: B. Selling to India and Bangladesh earns foreign exchange. (Key point: Export)

3. What does micro and small hydro bring to remote villages?
   A. Only tourism
   B. Light, communication, education and health services
   C. Nothing, because they need a grid
   D. Only irrigation
   Answer: B. Micro and small hydro supply electricity for these services in remote villages. (Key point: Rural role)

## Related in Hydropower Engineering

- [Hydropower Development Policy 2001 (2058 BS)](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ahdp-2001-objectives-features) — Hydropower Engineering, chapter 1, asked 4×
- [Institutions in Nepal's hydropower sector](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ainstitutional-setup-hydropower) — Hydropower Engineering, chapter 1, asked 2×
- [Stages of hydropower development cycle](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Adev-cycle-stages) — Hydropower Engineering, chapter 2
- [Licensing provisions in hydropower policy](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Ahdp-licensing-provisions) — Hydropower Engineering, chapter 1, asked 2×
- [Challenges and hydropotential of Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Achallenges-hydropotential-nepal) — Hydropower Engineering, chapter 1
- [Development cycle and detailed design studies](https://www.bctengineer.com/question.md?key=semester_7%2Fhydropower_engineering%3Adev-cycle-detailed-design-studies) — Hydropower Engineering, chapter 2

## Related in other subjects

- [Development of hydropower in Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Ahydro-development-nepal) — Power Plant Design, chapter 1
- [Hydropower and holistic regional development](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Ahydropower-holistic-development) — Power Plant Design, chapter 1
- [Internal/external risks; Nepal; hydropower](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Arisk-internal-external-nepal-hydropower) — Project Engineering, chapter 5
- [Status of irrigation development in Nepal](https://www.bctengineer.com/question.md?key=semester_6%2Firrigation_and_drainage_engineering%3Airrigation-status-nepal) — Irrigation and Drainage Engineering, chapter 1, asked 4×