Kathmandu: Nepal’s energy sector is open for business. That’s the message !

The Energy Development Council with the Investment Board of Nepal and the Ministry of Energy are organising the Nepal Power Investment Summit from May 31 to June 3.

The entire energy sector of Nepal will convey the message to the world that Nepal is ready to attract investors and partners in the development of its renewable energy resources.

The meet will bring together foreign investors, contractors, consultants and high powered speakers from all over the world. Large scale projects will be showcased and both foreign and Nepali companies will be exhibiting their products and projects at the event.

Nepal has always wanted foreign investment in energy, but it has apparently failed to persuade investors. Investors do not put money in out of a sense of altruism, or just because a symbolic red carpet is laid out for them. They look at hard numbers, and if they add up and match the desired rate of return, only then will they show interest.

Next week’s Summit is expected to present a clear case for Nepal as the number one destination in South Asia, and the top three emerging markets in Asia to make renewable energy investments.

Nepal may well be the future power house of South Asia, but large-scale investors have been discouraged by political instability and government hurdles. Doing business in Nepal is risky. The frequent change of governments is one of the pitfalls. But along with such risks investors find correspondingly higher rewards in Nepal than elsewhere in South Asia. Nepal clearly seeks those investors looking to make the highest returns in South Asia and also willing to take on such risks to achieve returns. Nepal must assure the investors that it will mitigate the risks. Higher risk-taking investors seeking higher returns will not pull out of Nepal.

Nepal has large scale opportunities in the renewable energy sector. The urban solar opportunity in the country could easily cross the $1 billion mark. Hydropower projects from both the government and private sector showcased during the Summit are in a similar range.

Nepal offers the highest power purchase rates offered in South Asia for hydropower and solar energy. The highest electricity generation per unit from both hydropower and solar plants are again found in Nepal. Nepal is the place in South Asia offering the highest returns on investments in renewable energy projects.

Nepal will continue to woo investors and improve the regulatory environment.

  Asia, development, energy, Nepal