Nepal’s Ministry of Energy, Water Resources, and Irrigation has approved the development of two solar power projects with a combined capacity of 132.75 megawatts (MW). This initiative is a cornerstone of the country’s strategic effort to diversify its energy mix. While Nepal is already a world leader in renewable energy—generating over 99.7% of its electricity from hydropower—this push into solar aims to complement its existing infrastructure and ensure a stable power supply year-round.
Project Details for Nepal solar energy
The Ministry of Energy announced its approval for a 55 MW solar power project in the Saptari district and a 77.75 MW project in the Siraha district. These projects will be developed by Kanchanroop Solar Energy Pvt Ltd and Siraha Solar Power Pvt Ltd, respectively.
Crucially, each project will also include a 30 MW battery energy storage system (BESS), making them the first solar power projects in Nepal to incorporate such technology. The inclusion of BESS is a game-changer for the national grid, designed to enhance stability and reliability, especially during peak demand periods when hydropower generation can fluctuate.
The 55 MW solar project in Saptari district will require an estimated investment of NPR 5.8 billion, while the 77.75 MW project in Siraha district will involve an investment of NPR 8.1 billion. Both projects are expected to be completed within two years of the approval date.
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Once connected to the national grid, these projects will help reduce the country’s reliance on imported electricity and fossil fuels. The development is perfectly aligned with Nepal’s broader goal of increasing its renewable energy capacity and reducing its carbon footprint.
Nepal’s Renewable Energy Goals with Nepal solar energy
The approval of these projects is a significant step, but it’s part of a much larger ambition. While the country’s official target is to increase its solar power capacity to 500 MW by 2025, the current pipeline shows even greater momentum. Survey licenses have been granted for projects totaling nearly 2,200 MW, indicating a massive scale-up is underway. This includes the recent finalization of power purchase agreements for two dozen other Nepal solar projects, setting an impressive 355 MW goal.
The government has signaled its strong commitment by removing the previous 10% cap on solar power in the national energy mix and now aims for solar to meet 10-15% of the country’s electricity demand. This strategic shift helps address the seasonal variability of hydropower, ensuring consistent energy availability during the dry season when river flows diminish.
The incorporation of battery energy storage systems in these projects is a major technological leap for Nepal’s energy sector. BESS technology allows for the storage of excess energy generated during sunny, low-demand periods, which can then be dispatched during evening peak hours. This ensures a more stable and reliable power supply, reducing the need for load shedding and enhancing the overall efficiency of the energy system.
Benefits of Solar Energy Projects in Nepal
These solar power projects will provide multiple benefits for Nepal. Beyond contributing to renewable energy targets, they will help reduce the need for imported electricity, which has long been a burden on the national economy. The reduction in fossil fuel consumption will also lead to a decrease in greenhouse gas emissions, reinforcing Nepal’s commitment to combating climate change. This progress has been bolstered by international support, including a $20 million World Bank grant for solar energy development.
The projects are also expected to create new jobs in the renewable energy sector, contributing to economic growth in the Saptari and Siraha districts. The successful implementation could serve as a model for future initiatives and even spur growth in adjacent industries. There is growing potential for solar manufacturing in Nepal, which would further boost the economy by localizing the supply chain. Understanding the basics of solar panel manufacturing is the first step in this direction.
Future Prospects for Nepal solar energy
The approval of these pioneering solar-plus-storage projects marks a significant milestone in Nepal’s energy transition. The government’s commitment is clear, and these initiatives are expected to play a crucial role in the country’s energy future.
As Nepal continues to develop its renewable energy infrastructure, the success of these projects will be closely monitored. Their performance could pave the way for further investment in solar and other renewable technologies. Furthermore, by developing projects eligible for international certification, Nepal is positioning itself within the global green economy, as seen with the Nepal solar I-REC project. This move aligns with worldwide trends detailed in the Global Solar Report.
If successful, these projects will not only help Nepal achieve its long-term energy and environmental goals but also solidify its status as a leader in sustainable development.
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