Kathmandu. So far, Rs 1.411 trillion has been invested in Nepal’s energy (hydropower) sector. Of this, the contribution of the private sector alone is more than Rs 13.10 trillion, according to the study.

According to the data of the study conducted by IPPAN, the private sector is seen as the main driver of energy development. As of mid-July 2018, 923 private sector promoted power projects with a total installed capacity of 34,786 MW were undertaken. So far, the private sector has invested Rs 1,310.60 billion in these projects.

Under the private sector, 204 projects with a combined installed capacity of 2,948 MW have been completed so far. Similarly, 143 projects with a capacity of 4,303 MW are under construction. In these completed and under-construction projects, banks and financial institutions alone disbursed loan of Rs 840.79 billion and equity investment of Rs 373.20 billion.

In contrast, a total of 576 projects (total capacity of 27,535 MW) that are in the survey phase, have already obtained power generation permits and have applied for permits have been fully financed through equity investment without bank loans. The private sector has already invested Rs 66.62 billion in these projects.

In the government sector, more than Rs 101 billion has been invested in 17 projects promoted by the Nepal Electricity Authority. Including this, the total investment in the energy sector has crossed Rs 14.11 trillion.

Significant investment has also been made in the energy sector through the capital market. So far, around 14.7 million Nepalese have invested Rs 41.65 billion in 93 energy companies through initial public offerings. In addition, 43 companies have raised Rs 56.32 billion by issuing right shares.

Overall, it is clear that the huge investment made in the energy sector is moving the country towards the goal of self-reliant energy production and long-term economic development by strengthening Nepal’s energy infrastructure.