• Bouddha-6, Kathmandu Nepal
  • ceo@sherpacorp.com.np

Hydropower & Renewable Energy

Nepal is a prime destination for hydropower and renewable energy investments due to its abundant water resources, increasing electricity demand, and favorable government policies. The country is shifting towards clean energy to reduce dependence on fossil fuels and meet regional energy demands, particularly in India and China.

Hydropower Potential in Nepal

  • Nepal has over 6,000 rivers, including major ones like the Koshi, Gandaki, and Karnali, which provide a hydropower potential of 83,000 MW.
  • Only about 3,200 MW has been developed so far, leaving vast untapped potential.
  • The country has several high-altitude glaciers, ensuring year-round water flow for power generation.
  • Nepal’s geography supports both run-of-river (RoR) projects and reservoir-based hydropower plants.

Government Policies & Incentives for Investors

Nepal’s government has introduced investment-friendly policies to attract foreign direct investment (FDI) in hydropower, including:

100% Foreign Ownership Allowed – Foreign investors can fully own hydropower projects.
Tax Exemptions & Holidays – Hydropower developers enjoy tax holidays for up to 10 years.
Custom Duty Exemptions – Lower import duties on hydropower-related equipment.
Guaranteed Power Purchase Agreement (PPA) – Nepal Electricity Authority (NEA) commits to purchasing generated electricity.
Repatriation of Profits – Foreign investors can repatriate earnings in convertible currency.
Investment Protection – Nepal has agreements with multiple countries to protect foreign investments.

Market Demand & Energy Export Opportunities

  • Nepal is transitioning from an energy-deficient country to a net exporter of electricity.
  • The government signed a long-term power trade agreement with India to export up to 10,000 MW over the next decade.
  • Nepal is also exploring energy export agreements with China and Bangladesh.
  • Rising domestic electricity demand, driven by industrialization and urbanization, ensures sustainable market growth.

Sherpa Corporation assists foreign investors in developing and operating profitable hydropower and renewable energy projects in Nepal by offering:

A. Investment Consultation & Feasibility Studies

Site Selection & Hydrological Studies – Identifies high-potential locations for hydropower plants.
Technical & Environmental Feasibility – Ensures compliance with environmental laws and risk assessments.

B. Business Registration & Legal Support

Company Registration & Licensing – Handles FDI approvals and permits.
Power Purchase Agreements (PPA) Negotiation – Assists in securing long-term PPAs with NEA.

C. Infrastructure Development & Project Execution

Construction & Engineering Support – Provides expertise in dam construction, turbine installation, and grid connectivity.
Project Management & Operations – Oversees implementation to ensure smooth execution.

D. Financial Management & Capital Raising

Securing Investment & Loans – Helps attract investors and funding from banks or international agencies.
Financial Planning & ROI Optimization – Maximizes returns by structuring cost-efficient operations.

E. Market Expansion & Power Export Assistance

Connecting with Buyers (India, China, Bangladesh) – Helps negotiate export agreements.
Facilitating Government & Private Partnerships – Creates profitable joint ventures.

Sherpa Corporation provides end-to-end support to foreign investors, ensuring smooth entry, profitable operations, and long-term success in Nepal’s renewable energy sector.