Water is known as Nepal’s oil, but this bountiful green energy source remains largely untapped. The country’s potential for hydro power is a massive 100 times its existing energy use – underused through lack of investment. But the possibility is evident everywhere – you don’t have to walk far here to find water rushing by, especially in the monsoon season – the sheer volume of water and the speed at which it races down mountain and hillside could hold the key to the country’s economic problems. From hydro power alone, Nepal could generate more than enough electricity to power the whole of the UK.

If Nepal could properly harness its 83,000 megawatts of hydropower potential not only would it could meet all domestic needs but also export electricity to neighbours like China and India. The availability of power for Nepal alone would be a boost. Powercuts are a daily reality in Kathmandu and other urban centres, while only 10% of people in rural areas have any access to electricity at all – all in all, a critical obstacle to growth and poverty reduction.

The modest plant pictured here on the Modi River is capable of producing 14,000 kilowatts – enough to power a small city. Local communities receive 20% of the revenue received. This is a ‘run of river’ operation which simply ‘borrows’ the water to drive the turbines and then returns it to the river further downstream.

Many international investors are keen to take advantage of the potential of hydro power in Nepal – but for the sums they need to invest, and the 20-50 year return they are looking for, they want to be sure of long-term stability and transparency in government. If Nepal can build itself a secure future, then there are additional benefits from hydro-power, not least the potential benefit from carbon trading from this clear energy source. MW/MD