Evolution and future prospects of hydropower sector in Nepal: A review

Nepal is one of the pioneers of hydropower development among Asian countries. The plethora of fast-flowing rivers provides immense potential for hydropower generation. However, Nepal still lacks a clear blueprint for the overall development and management of this sector. This paper aims to review the evolution of hydropower development, future prospects and roadblocks to hydropower development. With the growing energy demands projected to reach as high as 41,264.82 Gigawatt hours (GWh) in 2030 and 115,294.4 GWh in 2040 under different scenarios, this paper highlights the huge prospects the sector holds. It also proposes a focus on storage-type hydropower plants and concepts of energy banking to address the incipient condition of seasonal energy mismatch in the country, which has developed a condition of energy shortage during the winter and energy surplus during the monsoon. Moreover, projected changes in hydro-climatic extremes under the climate change scenarios is likely to affect water availability and subsequently the energy production in the majority of hydropower projects. Thus, this review can serve as a guideline to help understand the current scenario and make rational decisions and policies for the future management of the hydropower sector of the country.