Reservoir Projects Are Government’s Top Priority for Energy Security: Energy Minister Shrestha

Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha has said that reservoir-based hydropower projects will be prioritized as a national agenda for ensuring Nepal’s long-term energy security and economic transformation.

Speaking after inspecting the Kulekhani Hydroelectric Project today, Minister Shrestha emphasized that reservoir projects should be developed as a strategic priority to support industrial growth, water management, flood control, irrigation expansion, and tourism promotion. He noted that the government’s upcoming focus will be on expanding such projects across the country.

During discussions with employees of all three units of the Kulekhani Hydropower Project, the Minister highlighted the growing importance of water storage infrastructure in the context of climate change, rising natural risks, and unpredictable rainfall patterns.

“Climate change has increased risks such as glacier melt and erratic rainfall. In such a situation, there is no alternative to reservoir-based projects for ensuring energy security,” he said.

He further stressed the need to boost electricity generation during peak hours to support emerging sectors such as data centers and information technology industries. He also instructed the Nepal Electricity Authority (NEA) to develop an integrated model for reservoir projects and to attract both domestic and foreign investment, noting the government’s provision of a 50-year licensing period to encourage private sector participation.

Calling the Kulekhani Hydropower Project a “role model” for Nepal, the Minister urged immediate action to address local concerns, improve waste management around the reservoir area, and protect the environment in Indrasarovar due to increasing tourist activity.

During the inspection, he directed authorities to demarcate project boundaries, manage flood-borne debris entering the reservoir, and replace outdated equipment without delay.

Completed in 1982, the Kulekhani project is Nepal’s first reservoir-based hydropower scheme with a total capacity of 106 MW, comprising Kulekhani-I (60 MW), Kulekhani-II (32 MW), and Kulekhani-III (14 MW).