--- title: "Institutions in Nepal's hydropower sector" subject: "Hydropower Engineering" chapter: 1 key: "semester_7/hydropower_engineering:institutional-setup-hydropower" source: https://www.bctengineer.com/q/semester_7/hydropower_engineering/institutional-setup-hydropower site: BCT Engineering --- # Institutions in Nepal's hydropower sector Hydropower Engineering · Chapter 1: Introduction - Asked in: 2081 Bhadra, 1+3 marks; 2080 Bhadra, 4 marks (asked 2 times) - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/hydropower_engineering/institutional-setup-hydropower - Whole chapter: https://www.bctengineer.com/md/semester_7/hydropower_engineering/chapter-1 ## Question Describe the institutional set-up (government organizations and their responsibilities) in hydroelectricity development in Nepal, with a flow chart. ## 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. ## Answer 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 ```text Government of Nepal | MoEWRI (policy, law) | +----------+-----------+-----------+----------+ | | | | | WECS DoED NEA ERC AEPC (plan) (licence) (build, (tariff) (micro operate, hydro) grid) | Private developers (IPPs) via PPA ``` ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. Which organisation issues survey and generation licences? A. WECS B. AEPC C. ERC D. DoED Answer: D. DoED issues survey and generation licences, monitors licensees and collects royalty. (Key point: Licensing body) 2. Which body regulates tariff and settles disputes? A. DHM B. Electricity Regulatory Commission C. Nepal Electricity Authority D. Investment Board Nepal Answer: B. ERC regulates tariff, quality of supply and service, and settles disputes. (Key point: Regulation) 3. Which is a role of NEA? A. Promotes micro-hydro in villages B. Approves IEE/EIA C. Collects hydrological data D. Buys power from IPPs through PPAs and operates the national grid Answer: D. NEA generates, transmits and distributes power, buys from IPPs, and operates the grid. (Key point: NEA role) 4. What does WECS do? A. Approves EIA B. Plans and studies water and energy resources, prepares master plans C. Operates the grid D. Issues licences Answer: B. WECS studies and plans resources and gives policy advice. 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