KATHMANDU: The government has prioritized the development of hydropower projects, particularly reservoir-based ones, to enhance energy security, allocating Rs. 50.74 billion for the energy sector in the next fiscal year. Finance Minister Barsaman Pun, presenting the 2024/25 budget in the Federal Parliament, announced plans to add 900 megawatts of electricity in the next fiscal year, aiming to connect 4,500 megawatts to the national grid. The focus is on increasing per capita power consumption from the current 380 kilowatts to 450 kilowatts and exporting electricity to Bangladesh.

Special emphasis is placed on reservoir-based projects to meet dry season demand. Construction of the 1,200 MW Budhigandaki hydropower project is set to commence soon, with proposed frameworks to secure financial resources. The budget also allocates funds for the 635 MW Dudhkoshi and 417 MW Nalgad projects, as well as the 77.5 MW Ghunsa River and 70.3 MW Simbuwa River projects. Under the people's hydropower program, the government plans to start the 160 MW Jagdulla, 99.9 MW Tamakoshi-V, and 210 MW Chainpur Seti projects.

Minister Pun highlighted initiatives for clean and renewable energy to achieve zero carbon emissions by 2045. The budget includes provisions for a 100 MW solar energy system through private investment and encourages the production and use of green hydrogen. Infrastructure targets include completing the Dhalkebar Inaruwa and Bahrabise-Khimti-Lapsiphedi transmission lines, and starting the Seti, Bheri, and Budhigandaki corridor transmission lines. The New Butwal-Gorakhpur cross-border transmission line and other key transmission projects are also prioritized.