A Vision for Nepal’s Energy Independence and Sustainable Water Management

Author: Saroj K. Joshi, PE, PhD

A Productive Meeting with Energy Minister Biraj Bhakta Shrestha

I recently had the opportunity to meet with Nepal’s Energy Minister, Biraj Bhakta Shrestha, to share my expertise, ideas, and proposed solutions in the fields of energy, electricity distribution, electric vehicle infrastructure, and water resources. Our discussion covered practical approaches to renewable energy development, distributed solar generation, smart electricity distribution, demand management, sustainable transportation, and community based water supply systems.

I am hopeful that these concepts will receive serious consideration from the minister and his team and, where feasible, be evaluated for implementation in Nepal for the benefit of its people. Many of these ideas could also serve as models for other nations facing similar energy and water management challenges.

Below are the eight key proposals I presented during our discussion.

1. MIPP: Mini Independent Power Producers Through Solar PV

My concept of MIPP (Mini Independent Power Producers) uses direct solar photovoltaic (PV) generation to help households reduce their dependence on liquefied petroleum gas (LPG) for cooking while also contributing electricity to the national grid through net metering.

I introduced this concept in Nepal many years ago, and I believe it deserves renewed attention as the country advances its renewable energy goals.

With suitable solar powered cooking technologies, households could reduce LPG consumption, lower fuel related expenses, and generate additional value from rooftop solar installations. Where systems produce surplus electricity, approved net metering arrangements could allow electricity to flow back to the grid, subject to applicable technical and regulatory requirements.

This approach could transform individual households into small scale energy producers and collectively create a valuable distributed energy resource for Nepal.

By combining rooftop solar PV, efficient electric cooking appliances, and appropriate electricity tariffs, Nepal could make meaningful progress toward reducing imported fuel consumption, improving household energy security, and expanding the use of clean energy.

2. Mandatory Rooftop Solar for Suitable Buildings

Nepal should consider requiring rooftop solar PV systems on suitable new and existing buildings, subject to structural, technical, and economic feasibility.

Priority buildings could include:

• Air conditioned commercial buildings and offices

• Schools, colleges, universities, and other educational institutions

• Warehouses and industrial facilities

• Restaurants, hotels, and commercial complexes

• Government offices and public buildings

• Other buildings with adequate roof space and favorable solar exposure

Wherever structurally and technically feasible, rooftops and other accessible surfaces should be utilized to generate clean electricity close to where it is consumed.

For preliminary planning, I propose evaluating the following potential installed power densities:

• Sloped roofs: approximately 18 watts per square foot

• Other suitable roof surfaces: approximately 14 watts per square foot

These figures are preliminary planning assumptions and should be validated against solar module efficiency, roof orientation, shading, spacing, structural capacity, access requirements, and local solar conditions before being adopted as design standards.

A national rooftop solar program could establish technical guidelines, streamlined permitting procedures, and appropriate financing mechanisms to encourage participation by building owners.

Making productive use of existing rooftops would help Nepal generate electricity locally, reduce pressure on the grid during suitable daytime periods, and make better use of valuable urban space.

3. Develop an EV Corporation and Solar Hybrid Charging Network

Nepal should explore establishing an Electric Vehicle (EV) Corporation or a dedicated national program to coordinate EV infrastructure development according to the country’s topography, urban streets, highways, transportation requirements, and electricity supply capabilities.

The initiative could support:

• Electric cars, buses, motorcycles, and other suitable vehicles

• Strategically located EV charging stations

• Solar PV powered and solar hybrid charging infrastructure

• Charging facilities along major highways and in urban centers

• Battery storage and smart charging systems

• Integrated planning for electricity supply, storage, and charging demand

Solar hybrid charging stations could generate some of their own electricity and, where appropriate, incorporate battery storage and grid connections. Smart charging systems could shift charging to periods when renewable electricity is more readily available or grid demand is lower.

This approach could reduce dependence on imported petroleum products, support cleaner transportation, and create new business opportunities in charging infrastructure, vehicle maintenance, battery services, and related industries.

The objective is to develop an EV ecosystem suited to Nepal’s geography rather than simply importing a model designed for another country.

4. Rooftop Solar Incentives and Large Scale Net Metering

I propose that Nepal consider a targeted financial incentive of approximately NPR 70,000 for each qualifying rooftop solar installation, subject to system size, technical standards, available public funding, and a transparent implementation framework.

In return, participating systems could connect to the grid under approved net metering arrangements, enabling surplus electricity to support the wider power network.

The government should begin with a comprehensive rooftop solar assessment across Kathmandu Valley and its surrounding municipalities. The assessment should identify suitable residential, commercial, institutional, industrial, and government buildings and estimate their potential solar generation capacity.

For illustration, the potential installed capacity could be calculated using the following scenarios:

• 200,000 installations × 2 kW = 400 MW

• 400,000 installations × 2 kW = 800 MW

These are illustrative scenarios, not verified estimates of available rooftop capacity. Actual achievable capacity would depend on the number of suitable roofs, system sizes, grid hosting capacity, financing, technical constraints, and participation rates.

A well designed incentive program could mobilize private investment, reduce the need for some publicly funded generation capacity, and encourage citizens to become active participants in Nepal’s energy transition.

The program should also evaluate the total cost of incentives, net metering compensation, grid upgrades, financing, and long term benefits to electricity consumers. Incentives could be prioritized for installations that provide measurable public benefits and help relieve local grid constraints.

With careful planning, rooftop solar could become a major component of Nepal’s distributed energy strategy.

5. Smart Demand Response and Utility Controlled Lighting

Nepal should investigate a modern demand response system in which smart sensors, automated controls, and utility approved technologies help manage selected electricity loads during peak demand periods.

As a proposed target, I recommend evaluating whether up to 15% of suitable lighting demand could be made controllable through automated systems, occupancy sensors, dimming technologies, and voluntary or contracted demand response programs.

Potential applications include selected commercial buildings, offices, warehouses, public facilities, and other appropriate installations.

With customer consent and suitable safeguards, participating loads could be adjusted during periods of electricity stress. This would give the Nepal Electricity Authority (NEA) additional flexibility to manage peak demand, respond to supply constraints, and improve the utilization of existing electricity infrastructure.

The 15% figure is a proposed planning target requiring technical assessment, not a guaranteed reduction in total national electricity demand.

Implementation should preserve safety, required illumination levels, customer protections, and essential services. Appropriate incentives could encourage building owners and businesses to participate in demand response programs.

In the longer term, smart meters, advanced distribution management systems, and improved demand forecasting could help Nepal build a more flexible, efficient, and resilient electricity network.

6. An 80/20 Approach to Electrical Distribution and Grid Integration

I also propose studying an 80/20 allocation principle for selected electricity distribution systems to support more systematic integration of distributed solar PV.

Under this concept, a distribution connection or appropriately designed electrical installation could allocate approximately 80% of its relevant capacity to conventional customer demand while reserving the remaining 20% as a planning allowance for distributed solar integration and associated grid management requirements.

For example, in a hypothetical 1,000 ampere system, the planning concept would consider:

• 800 A: primary allocation for conventional customer demand

• 200 A: planning allowance associated with solar integration

These figures illustrate the concept only and must not be treated as an automatic electrical connection rule or a substitute for engineering design.

Actual allocations would require detailed engineering studies addressing load profiles, solar generation patterns, protection coordination, inverter settings, voltage limits, reverse power flow, transformer capacity, conductor ratings, and applicable electrical codes.

The optimal allocation would vary according to the characteristics of each distribution network. In some locations, the grid may accommodate considerably more distributed solar, while in others, upgrades or alternative control strategies may be necessary.

With appropriate design, this planning approach could encourage more systematic solar integration, improve utilization of existing infrastructure, and reduce unnecessary stress on distribution networks.

The ultimate goal is to develop a distribution system capable of accommodating increasing amounts of renewable energy without compromising reliability, safety, or power quality.

7. A Community Based Water Supply System for Kathmandu and Beyond

Water security is another critical issue that Nepal must address through long term planning, efficient infrastructure, and coordinated resource management.

For Kathmandu Valley, I recommend conducting a comprehensive study of the region’s topography, elevation differences, existing water infrastructure, community needs, water sources, and future demand.

Drawing on centralized and district level pumping approaches used in places such as California, Nepal could investigate a network of strategically located community water pumping stations under the appropriate water resources authorities.

A pilot project could evaluate several pumping stations, each with a preliminary capacity of approximately 200 horsepower (HP), with the number and locations determined by detailed engineering studies.

The proposed system could:

• Supply water to designated communities through planned distribution networks

• Use elevation and topographical analysis to optimize pumping requirements

• Reduce unnecessary duplication of individual pumping equipment where shared infrastructure is practical

• Improve coordination of water distribution to homes, hotels, government offices, and commercial buildings

• Incorporate efficient pumps, monitoring systems, storage reservoirs, and renewable energy where feasible

• Improve the reliability, maintainability, and equitable distribution of water services

Rather than relying exclusively on household level pumping, a properly designed community system could improve operational efficiency, facilitate maintenance, and support more coordinated water distribution.

However, the success of such a system would depend on reliable water sources, appropriate treatment facilities, storage capacity, distribution pressure, leakage control, energy requirements, and effective management.

The proposal should be evaluated alongside existing and planned water supply projects, including the Melamchi water supply system. It is not a substitute for assessing available water sources, treatment requirements, seasonal availability, distribution losses, and the full costs of new infrastructure.

A pilot study should determine the optimal number and capacity of pumping stations, suitable reservoir locations, required pipe sizes, operating schedules, and potential integration with solar PV or other renewable energy resources.

The long term objective is to build a resilient, efficient, and environmentally responsible water supply system that can serve Kathmandu and, eventually, other communities throughout Nepal.

8. Attract Domestic and Foreign Investment in Data Centers

Nepal should actively invite domestic and foreign investors to develop modern, energy efficient data centers by leveraging two important potential advantages: competitively priced electricity and the cooling opportunities offered by suitable high altitude locations.

As global demand for cloud computing, artificial intelligence (AI), digital services, and data storage continues to expand, Nepal should evaluate whether its renewable energy resources and distinctive geography can support a competitive data center industry.

A. Competitive Energy Costs

Nepal’s hydropower resources, together with the potential for solar and other renewable energy sources, could help position the country as an attractive destination for energy intensive data center operations.

Electricity is a major component of data center operating costs. Reliable power supplies, competitively priced long term electricity contracts, and a stable regulatory framework would therefore be essential to attracting investors.

The government should explore policies that encourage private investment in:

• Cloud computing and data storage facilities

• Artificial intelligence and high performance computing centers

• Colocation and enterprise data centers

• Digital infrastructure supporting domestic businesses and public services

• Regional technology and information services

The availability of renewable electricity could also help data center operators meet their sustainability goals, provided that the power supply arrangements and environmental claims are appropriately documented.

However, competitive electricity prices alone will not guarantee investment. Investors will also require dependable year round power, redundant connections, appropriate backup systems, reliable telecommunications, and a predictable business environment.

B. High Altitude Locations and Energy Efficient Cooling

Nepal’s high altitude geography offers opportunities to evaluate naturally cooler environments for data center development.

In suitable locations, lower ambient temperatures could reduce the energy required to cool servers and associated equipment. More efficient cooling could improve the overall energy performance of data centers and potentially reduce operating costs.

Site selection should consider year round temperature profiles, humidity, air quality, altitude related equipment requirements, seismic risks, landslide exposure, water availability, and access to reliable electricity.

The potential cooling benefits must be verified through site specific engineering and economic studies. High altitude alone does not guarantee lower total operating costs, and the most suitable locations would need to balance cooling efficiency with infrastructure, resilience, and connectivity.

Where technically and economically appropriate, data centers could incorporate advanced cooling technologies, efficient heat management, renewable energy integration, and battery storage.

C. Develop the Required Infrastructure and Logistics

To make these investments commercially viable, Nepal should identify suitable locations with access to:

• Reliable, high capacity electricity connections

• Redundant fiber optic networks and international telecommunications links

• Reliable transportation and equipment supply chains

• Skilled technical personnel and training institutions

• Suitable land, water management, and environmental safeguards

• Disaster resilient facilities and dependable backup systems

The government could establish a transparent framework for public private partnerships, investment facilitation, power supply agreements, land availability, and appropriate tax and regulatory incentives.

Coordination among energy authorities, telecommunications providers, investment agencies, local governments, and educational institutions would be essential.

A phased approach could begin with a national feasibility study and pilot data center projects before expanding to larger facilities, including specialized AI computing centers, where market demand and infrastructure capacity justify the investment.

D. Economic and Strategic Benefits for Nepal

A well planned data center investment program could create several opportunities for Nepal:

• Attract domestic and foreign direct investment

• Create skilled employment in engineering, information technology, operations, and facility management

• Expand demand for reliable renewable electricity

• Strengthen Nepal’s digital infrastructure and technology sector

• Encourage training, research, and collaboration with universities and technical institutions

• Develop opportunities in cloud services, AI computing, and digital exports

 Potentially position Nepal as a regional destination for sustainable digital infrastructure

The government should evaluate electricity demand, grid capacity, telecommunications reliability, water requirements, environmental impacts, cybersecurity, data protection, and financial feasibility before approving large scale projects.

The long term vision is to transform Nepal’s renewable energy potential and distinctive high altitude geography into strategic economic advantages. With the right infrastructure, policies, and investment environment, Nepal could attract global technology investment, create high value jobs, strengthen its digital economy, and establish itself as a competitive destination for sustainable digital infrastructure.

A National Opportunity for Nepal

My discussion with Energy Minister Biraj Bhakta Shrestha was an opportunity to share ideas developed through my expertise in energy and water resources. I am grateful for the opportunity to present these proposals and hopeful that the minister and his team will assess their feasibility and consider appropriate pilot projects.

The central message is simple: Nepal can make better use of its rooftops, modernize its electricity distribution systems, integrate solar power with transportation, manage peak demand more intelligently, strengthen community water infrastructure, and attract investment in energy efficient digital infrastructure.

These eight proposals offer opportunities to connect Nepal’s natural resources, engineering capabilities, private investment, and public policy in support of long term national development.

Implementing these ideas would require sound engineering, economic analysis, clear policies, coordination among government agencies, and engagement with communities and the private sector. Pilot projects should be selected according to their technical feasibility, financial viability, environmental impacts, and measurable public benefits.

With careful implementation, these initiatives could help reduce energy costs, improve resource efficiency, strengthen infrastructure resilience, reduce dependence on imported fuels, create employment opportunities, and support sustainable economic growth.

I hope the minister and his team will take these ideas forward for detailed evaluation and practical implementation wherever they prove beneficial.

A Vision Beyond Nepal

My vision extends beyond Nepal. Many countries face similar challenges in energy security, electricity distribution, water management, transportation, and the growing demand for digital infrastructure.

With appropriate adaptation to local geography, resources, technologies, and regulations, elements of this integrated model could benefit communities and nations around the world.

Nepal has an opportunity to turn its renewable energy resources, mountainous geography, entrepreneurial potential, and engineering talent into lasting advantages for its people.

The time is right to evaluate bold ideas, invest in practical solutions, and build a more energy secure, water secure, and technologically advanced Nepal.

Acknowledgment: Er. Yam Bhandari was also present at the meeting.