Gagan Thapa and Yurendra Basnett, May 2015
Key messages from the brief include that hydropower can help Nepal decouple growth from rising carbon emissions and propel economic transformation. To do so will require creating agglomeration effects around hydropower development.
Nepal should consider investing hydropower revenue to ensure that the country stays on a low-carbon economic growth pathway; to build the much needed transport infrastructure and power it with electricity; and to develop industries.
There are important risks that could derail the benefits of hydropower development. These include financial volatility, corruption leading to further weakening of governance, and ineffective regulation.
Universal coverage of transmission lines will be important for ensuring inclusive access to energy.