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The hydropower plant is set to boost energy security in South Asia
In a landmark step toward strengthening regional energy cooperation and advancing renewable energy, the Indian Renewable Energy Development Agency Ltd. (IREDA) has entered into a Joint Venture Agreement with SJVN Ltd., GMR Energy Ltd., and Nepal Electricity Authority (NEA) for the development of the 900 MW Upper Karnali Hydropower Project in Nepal.
The agreement, formalized at a ceremony in New Delhi on Friday (January 17, 2025), outlines a comprehensive framework for the project's development, construction, operation, and maintenance under a Build-Own-Operate-Transfer (BOOT) model. The project will have a 25-year operational term from its Commercial Operation Date (CoD), after which it will be transferred to Nepal.
Speaking on the occasion, IREDA CMD Pradip Kumar Das highlighted the importance of the initiative, stating, “This agreement marks a significant step towards realizing our collective vision of sustainable energy development in the region. By leveraging hydropower’s vast potential, the Upper Karnali project will serve as a model of cross-border collaboration, delivering both economic and environmental benefits.”
The joint venture underscores the growing emphasis on regional partnerships to address energy security challenges while promoting sustainable development. The project is expected to generate clean energy, reduce greenhouse gas emissions, and support Nepal's energy needs while contributing to India’s renewable energy goals.
The Upper Karnali Hydropower Project
Located in Nepal, the Upper Karnali Hydropower Project is designed to harness the region's abundant hydropower resources to generate clean, renewable energy. The project aligns with the Build-Own-Operate-Transfer (BOOT) model, which ensures sustainable development and operational efficiency.
Key highlights of the project include:
Capacity: 900 MW
Project Term: 25 years from CoD
Model: BOOT (Build-Own-Operate-Transfer)
The hydropower plant is set to boost energy security in South Asia while promoting economic development and environmental conservation in Nepal. It also reflects India’s commitment to fostering stronger ties with its neighbors under its “Neighborhood First” policy.
IREDA, under the Ministry of New and Renewable Energy (MNRE), has been instrumental in promoting and financing renewable energy projects across India and now extends its expertise to the Upper Karnali project. SJVN Ltd. and GMR Energy Ltd. bring extensive experience in hydropower development, while NEA’s involvement ensures local expertise and alignment with Nepal’s energy goals.
The Upper Karnali Hydropower Project is expected to bring several significant benefits:
Energy Generation: The plant will contribute to Nepal's domestic energy supply and provide surplus energy for export, strengthening regional energy trade.
Sustainability: By utilizing renewable hydropower, the project will help reduce dependency on fossil fuels and lower carbon emissions.
Economic Growth: The development of the project will create jobs, support local economies, and promote infrastructure development in Nepal.
Cross-Border Collaboration: The initiative exemplifies how regional cooperation can address energy challenges and promote shared prosperity.
IREDA’s Role in Renewable Energy
As a non-banking financial institution under MNRE, IREDA plays a critical role in promoting and financing renewable energy projects. Its participation in the Upper Karnali project reflects its commitment to expanding renewable energy capacity, not just within India but also in the South Asian region.
Das emphasized the broader vision of IREDA, stating that such projects set benchmarks for regional collaboration, contributing to economic development and environmental conservation.
The signing of the Joint Venture Agreement for the Upper Karnali Hydropower Project marks a milestone in India-Nepal energy cooperation. It represents a shared vision of sustainable growth, energy security, and environmental stewardship.
The project is expected to act as a catalyst for future cross-border collaborations in renewable energy and solidify South Asia's position as a hub for sustainable energy solutions. As the region looks to address climate change and energy demands, projects like Upper Karnali are set to pave the way for a greener and more prosperous future.
The agreement, formalized at a ceremony in New Delhi on Friday (January 17, 2025), outlines a comprehensive framework for the project's development, construction, operation, and maintenance under a Build-Own-Operate-Transfer (BOOT) model. The project will have a 25-year operational term from its Commercial Operation Date (CoD), after which it will be transferred to Nepal.
Speaking on the occasion, IREDA CMD Pradip Kumar Das highlighted the importance of the initiative, stating, “This agreement marks a significant step towards realizing our collective vision of sustainable energy development in the region. By leveraging hydropower’s vast potential, the Upper Karnali project will serve as a model of cross-border collaboration, delivering both economic and environmental benefits.”
The joint venture underscores the growing emphasis on regional partnerships to address energy security challenges while promoting sustainable development. The project is expected to generate clean energy, reduce greenhouse gas emissions, and support Nepal's energy needs while contributing to India’s renewable energy goals.
The Upper Karnali Hydropower Project
Located in Nepal, the Upper Karnali Hydropower Project is designed to harness the region's abundant hydropower resources to generate clean, renewable energy. The project aligns with the Build-Own-Operate-Transfer (BOOT) model, which ensures sustainable development and operational efficiency.
Key highlights of the project include:
Capacity: 900 MW
Project Term: 25 years from CoD
Model: BOOT (Build-Own-Operate-Transfer)
The hydropower plant is set to boost energy security in South Asia while promoting economic development and environmental conservation in Nepal. It also reflects India’s commitment to fostering stronger ties with its neighbors under its “Neighborhood First” policy.
IREDA, under the Ministry of New and Renewable Energy (MNRE), has been instrumental in promoting and financing renewable energy projects across India and now extends its expertise to the Upper Karnali project. SJVN Ltd. and GMR Energy Ltd. bring extensive experience in hydropower development, while NEA’s involvement ensures local expertise and alignment with Nepal’s energy goals.
The Upper Karnali Hydropower Project is expected to bring several significant benefits:
Energy Generation: The plant will contribute to Nepal's domestic energy supply and provide surplus energy for export, strengthening regional energy trade.
Sustainability: By utilizing renewable hydropower, the project will help reduce dependency on fossil fuels and lower carbon emissions.
Economic Growth: The development of the project will create jobs, support local economies, and promote infrastructure development in Nepal.
Cross-Border Collaboration: The initiative exemplifies how regional cooperation can address energy challenges and promote shared prosperity.
IREDA’s Role in Renewable Energy
As a non-banking financial institution under MNRE, IREDA plays a critical role in promoting and financing renewable energy projects. Its participation in the Upper Karnali project reflects its commitment to expanding renewable energy capacity, not just within India but also in the South Asian region.
Das emphasized the broader vision of IREDA, stating that such projects set benchmarks for regional collaboration, contributing to economic development and environmental conservation.
The signing of the Joint Venture Agreement for the Upper Karnali Hydropower Project marks a milestone in India-Nepal energy cooperation. It represents a shared vision of sustainable growth, energy security, and environmental stewardship.
The project is expected to act as a catalyst for future cross-border collaborations in renewable energy and solidify South Asia's position as a hub for sustainable energy solutions. As the region looks to address climate change and energy demands, projects like Upper Karnali are set to pave the way for a greener and more prosperous future.
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