Reservoir hydro projects are a government priority: Energy Minister Shrestha

KATHMANDU: Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha said on Sunday that reservoir-type hydroelectric projects are a high priority for the government and should be promoted as a national priority for Nepal’s long-term energy security, industrial development and overall economic transformation.

Speaking after an inspection of the Kulekhani Hydroelectricity Project, Minister Shrestha said the government’s main focus in the coming days will be on the development of reservoir-based projects, which he said would serve as a backbone not only for electricity generation but also for water management, flood control, irrigation expansion and tourism promotion.

In discussions with employees of all three hydropower plants at Kulekhani, the energy minister highlighted the growing importance of water storage structures in light of rising natural risks and irregular rainfall linked to climate change. “Climate change has increased the risk of glaciers melting and altering rainfall patterns; in such a situation, there is no alternative to reservoir-based projects for energy security,” he said.

Minister Shrestha emphasised the need to increase electricity production during peak hours to support the industrial sector, particularly data centres and information technology industries. He directed the Nepal Electricity Authority (NEA) to develop an integrated model for reservoir projects and underlined the importance of attracting both domestic and foreign investment.

To encourage private sector participation, the government has established a 50-year licence period for reservoir projects. The minister cited the Kulekhani project as a role model for the country and called for immediate action to address social issues and complaints from local communities.

He also raised concerns about waste management around the reservoir, noting that rising tourist activity has created environmental challenges, and urged collaboration with local stakeholders to protect the Indrasarovar area.

During the inspection, Minister Shrestha instructed authorities to demarcate land within the project area, manage debris entering the reservoir from floods, and promptly repair and replace outdated equipment.

The Kulekhani project, completed in 1982, is Nepal’s first reservoir-type hydroelectric project. Its total installed capacity is 106 MW, comprising Kulekhani-1 (60 MW), Kulekhani-2 (32 MW) and Kulekhani-3 (14 MW).

(With inputs from RSS)