Six Years On, Hydropower Equity for the Poor Still Unfulfilled Amid Policy Delays
Despite repeated pledges, Nepal’s government has failed to implement concessional loans for poor citizens to invest in hydropower projects under the People's Hydropower Program.
Six years after its publicized launch, Nepal’s People’s Hydropower Program, a government initiative aimed at democratizing equity in hydropower projects, continues to falter—particularly in providing concessional financing to poor and marginalized households.
Initially inaugurated by then-Prime Minister KP Sharma Oli in 2019, the program’s goal was to allow everyday Nepalis to co-own national hydropower infrastructure. Ironically, despite PM Oli returning to office, progress remains stagnant.
Last year, Energy Minister Deepak Khadka promised a revamped version of the program, including concessional loans ranging from NPR 200,000 to NPR 500,000 per family. The pledge aimed to increase participation among economically weaker households. However, one year later, the scheme has yet to move beyond paper.
Although the government identified 21 hydropower projects for public investment, only a few — like Trishuli 3B and Tamakoshi V — have seen partial shareholder involvement. The majority remain in limbo, with little to no traction on construction or public financing.
Amid stalled implementation, the government recently amended the “People’s Hydropower Operating Procedure, 2074” to improve inclusivity and add financing flexibility. But experts remain skeptical.
Key Concerns:
Access vs. Affordability: Poor citizens may receive shares but lack repayment capacity for bank loans, especially if the project has a three-year lock-in period or lacks RCOD (Ready for Commercial Operation Date).
Institutional coordination is weak, with limited collaboration between the Energy Ministry, Ministry of Finance, and commercial banks.
Project delays make electricity sales uncertain, posing repayment risks for both developers and low-income investors.
Suryod Acharya, chairperson of Green Energy Entrepreneur Nepal, stated, “A policy is only as good as its implementation. Without inter-agency coordination and proper risk management, the promise of equity to the poor remains symbolic.”
With over NPR 3,500 MW worth of projects identified, Nepal’s ambition to engage its citizens in energy ownership now depends on the government’s ability to act on its long-standing promises.