It was 30 years ago this month that investment into ‘Baby Arun’, the 201MW first phase of the run-of-river Arun III project, was brought to a screeching halt when the World Bank officially withdrew its support. This brought about profound and fundamental changes in the way Nepal’s power sector subsequently developed. Nepalis suffered debilitating power outages between 2008-2016 due to shortages attributable to the cancellation. At the same time, the gap left by Baby Arun was filled by private sector investment in ways that were not obvious in 1995. It took 30 years, but in many ways Nepal’s power sector is more healthy today than it has ever been, and likely better than if the project was built as planned. At a projected budget of $1.08 billion, Baby Arun would have cost the equivalent of Nepal’s entire annual government expenditure in 1995. It was to be funded by concessional grants and loans from multilateral and bilateral funders, including the World Bank, Asian Development Bank (ADB), KfW, and investment by the government itself. At the time, Nepal’s total electricity generation capacity was only 230MW, and the trajectory of the power sector changed dramatically following the cancellation. In the past 30 years, $5.4 billion has been invested in the power sector led by private investors, and much of it from domestic banks and pension funds (table, right).  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0.jpg" data-media-id="editor_0" data-image-id="20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0" data-rendition-name="original" width="984" height="521" loading="lazy" alt="30 years after Baby Arun"> </figure>  Nearly 70% of the new megawatts generated were by private independent power producers (IPP) in the past 30 years, while the Nepal Electricity Authority (NEA) and its subsidiary companies added 30% of new capacity. Almost 80% of total debt financing came from domestic banks and employee retirement funds. International assistance for power generation dropped dramatically over this time, accounting for only about 15% of investment. Before 1995 new power projects used to be entirely dependent on foreign aid. Since 1995, 63% of new generation came from 171 small hydropower projects with an average capacity of 12MW, while 4% was from 21 solar photovoltaic and biomass projects developed by local IPPs.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097.jpg" data-media-id="editor_1" data-image-id="20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097" data-rendition-name="original" width="988" height="503" loading="lazy" alt="30 years after Baby Arun"> </figure>  Over three decades, investment in Nepal’s power supply came primarily from new actors that had never before been involved in this sector. The rate of electrification rose from 10% to close to 100% -- sufficient to meet domestic needs during most of the year, and in 2024 made Nepal a net exporter of power to India for the first time in its history. As practically all the new investment in this period went into run-of-river hydro and solar projects, rather than into hydropower reservoirs with seasonal storage, Nepal continues to rely on imports from India during the dry winter months. Surplus electricity generation for export during the monsoon is slated to grow rapidly as another 200 solar and hydro projects are nearing completion of construction, with over 5,000MW of power capacity. Private Power The cancellation of Baby Arun inadvertently accelerated the entry of the private sector into Nepal’s power generation. The government enacted the Electricity Act in 1992 to attract private IPPs and diversify away from total dependence from international aid, but had been struggling for several years to conclude the first agreement with the 60MW Khimti Project. There remained a large gap between the tariff that the government thought was reasonable versus what was demanded by the Norwegian investor Statkraft, and the private sector arms of the World Bank and ADB that were financing the project. The shock of World Bank withdrawal from Baby Arun put tremendous pressure on the government, then led by the UML as it is now. The Bank’s decision to terminate its involvement was ostensibly, at least partially, taken in response to a letter critiquing the project sent by the UML while it was in the opposition.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347.jpg" data-media-id="editor_2" data-image-id="20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347" data-rendition-name="original" width="949" height="446" loading="lazy" alt="30 years after Baby Arun"> <figcaption>BAD NEWS: Newspaper clippings from the early 90s on tender announcement ahead of loan approval (left) and secrecy surrounding environmental assessment (centre) of Arun III before its eventual cancellation in August 1995.</figcaption> </figure>  The government was forced to soften its position and agree to the investors’ terms following the cancellation of Baby Arun. It directed NEA to sign a power purchase agreement (PPA) with Khimti. It was concluded in January 1996, and this was followed by a second PPA in July 1996 with Panda Energy, the American developer of the 45MW Upper Bhotekosi project. The expensive USD-denominated agreements to buy power from two international private producers, with price escalation clauses tied to the New York Consumer Price Index, sent alarm bells ringing. There was worry that the country was heading towards unaffordable tariff rates for the consumer and potential bankruptcy for NEA as a result of inevitable future weakening of the Nepali Rupee. The government had strong-armed NEA into signing these agreements, and realised that concessionary financing terms that Nepal was used to receiving for public sector projects such as Baby Arun and Kali Gandaki A, that included below-market interest rates and 40 years repayment period with a 10 year grace period before starting repayment, were not the norm for private sector investors. Nepal’s status as a less than attractive destination for foreign investment meant that the country had few options but to accept expensive dollar PPAs from international developers with the high commercial interest rates and short repayment periods imposed by their banks because of high investment risks. In the end, the government ended up having to additionally provide a sovereign guarantee in order to close the deal at the insistence of the lenders – committing it to repayment in case NEA defaulted on paying the IPPs. It is reasonable to assume that the extraordinarily high political cost of agreeing to the PPA terms would have meant that no government would have willingly agreed to them in 1995 had it not suffered the trauma of the loss of concessionary-financed public sector projects as large as the Baby Arun. It has taken NEA 25 years to consider offering dollar-denominated PPAs again: to cover the foreign exchange portion of the investment in the 216MW Upper Trisuli-1 and 120MW Rasuwa-Bhotekosi Hydropower projects. It seemed unlikely at the time, but it turned out that the dire situation Nepal found itself in 1995 planted the seed to mobilise investment for affordable power from within the country. Double Whammy After the dual shock of first losing investment in Baby Arun and having to sign expensive power purchase agreements with international IPPs, the first proposal for an alternative strategy to mitigate the risk of foreign currency investment into hydropower projects came from a group of engineers within the Arun III team at NEA. Led by <a href="https://archive.nepalitimes.com/news.php?id=4900">Deputy Director Damber Bahadur Nepali,</a> engineers convinced the leadership that NEA needed to invest in a subsidiary company to build a series of locally-designed and domestically-financed projects that would have lower cost with rupee-denominated PPAs. They registered the Chilime Hydropower Company Limited (CHCL) in October 1995 with 51% shares from NEA, 25% from its employees, and 24% available for the general public, 10% of which was prioritised for local residents at the project site. The 22.1MW project is in Rasuwa on a tributary of the Trisuli, and mobilised debt financing from the Employee Provident Fund, which manages retirement savings for employees of the government, public enterprises, and private sector institutions. CHCL’s experience showed that NEA employees themselves believed that individual hydropower projects with operational independence from NEA could be developed profitably in Nepal by its own engineers -- and they were willing to put their own money on the line. Chilime also demonstrated that there was money in the country, particularly with retirement funds, looking for opportunities for long-term investments. Following completion of Chilime in 2003, CHCL led the formation of three other NEA subsidiary companies that completed construction in 2023 and 2024, producing 168.3MW using fully rupee-tied investment. NEA’s largest subsidiary, the Upper Tamakosi Hydropower Limited, completed construction of its 456MW plant in 2021.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3.jpg" data-media-id="editor_4" data-image-id="20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3" data-rendition-name="original" width="3000" height="1571" loading="lazy" alt="30 Years after Baby Arun"> <figcaption>DAMNED: The $700 million 456MW Upper Tamakosi built entirely with domestic funds before it was destroyed by the September floods last year. </figcaption> </figure>  There were some delays and cost overruns on this run-of-river project, the largest in the country with a final cost of over $700 million -- all of it sourced domestically. The five subsidiary companies launched by NEA have produced almost two times as much new power as NEA has over the past 30 years. Seven other NEA subsidiaries are currently constructing projects to add another 474MW to the national grid. But even more important than NEA subsidiaries have been local IPPs: Nepali companies which have over the past three decades enthusiastically entered the hydropower sector. From a regulatory perspective, the credit for mobilising domestic private investment to engage in power generation goes to Minister of Water Resources Shailaja Acharya, who in 1998 offered a flat feed-in-tariff of Rs4/kWh for hydropower projects under 10MW. This upfront offer removed a major barrier that early developers had faced of having to spend money to carry out a detailed feasibility study before they could even start tariff negotiations with NEA. She had laid the foundation stone of the Chilime project, and proved to be the champion of opening up the sector for domestic IPPs. The guarantee of a PPA with a fixed tariff, irrespective of project specifications, gave small power developers the confidence to apply for survey licenses and invest in feasibility studies so they could directly approach commercial banks and make a case for their project producing required revenue to repay loans. Domestic IPPs started adding power to the national grid in 2002. Their contribution was initially modest, and first projects were small and commercial lenders who took time to be confident about providing debt financing to a sector which had previously not been considered suitable for private sector investment. While the first 10 years were slow, with less than 10MW being added to the grid each year, this increased twenty fold over the following ten years, resulting in the equivalent of a Baby Arun being added by Nepali IPPs to the grid each year. A total of 84 IPPs added 232MW, 328 MW, 454MW, and 400MW of new generation to the grid in 2021-2024 (graph). There was explosive, exponential growth as domestic developers have surged ahead to account for 76% of the new megawatts added to the grid since 2020, compared to 24% by NEA and its subsidiary companies. The megawatts that IPPs are adding have followed the classic ‘hockey stick curve’ with the ‘breakout point’, signaling the rapid growth phase in 2020. Private producers are expected to accelerate new generation in the coming years with 300 solar and hydropower projects adding 11,000MW. Another 166 hydropower and 96 solar projects are currently in the survey stage, and are in line to add another 11,000MW to the construction pipeline. One major challenge is finding financing required for the projects. Domestic investment will no longer be sufficient to finance this ambitious pipeline of renewable energy projects. Project developers as well as NEA and the Electricity Regulatory Commission will have to leverage their substantial experience accumulated through the construction of over 200 projects to attract regional and international investment and hedge the risks of dollar-denominated PPAs. Following the cancellation of Baby Arun, <a href="https://nepalitimes.com/opinion/people-power/decentralising-power-in-nepal">Nepal developed a highly distributed power sector</a>. The national electricity grid is currently supplied with power from a remarkably decentralised array of hundreds of hydropower and solar photovoltaic projects spread across 43 districts and all seven provinces.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b.jpg" data-media-id="editor_6" data-image-id="20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b" data-rendition-name="original" width="1228" height="867" loading="lazy" alt="30 years after Baby Arun"> </figure>  This presents a sharp contrast to the pathway of a few large public sector hydropower projects with a sprinkling of private sector projects that was envisioned as part of NEA’s investment planning when Baby Arun was being considered the front runner for investment. The strategy then was to allow public sector investment in a few large hydropower projects with thermal plants to fill the gap. Knowing what we know now about acceleration of climate change impacts and increased extreme weather events, following this path would have made Nepal’s power sector highly vulnerable. Decentralised generation greatly improves the resilience of Nepal’s power supply as damage to power plants in one part of the country need not affect other areas that have their own generation. Following the investment plan where over two thirds of the country’s power supply would have come from power plants on the Arun River, would have greatly imperiled Nepal’s energy security. All rivers in Nepal are susceptible to flooding from cloudbursts made more frequent by climate change. The Arun River which is fed by glaciers in Tibet is also at risk to glacial lake outburst floods. Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his regular column in Nepali Times on global energy issues relevant to Nepal. <h2>Decentralised and Diversified</h2> In the 30 years since the cancellation of ‘Baby Arun’: Hydropower projects constructed cover capacities ranging from less than 1MW to 456MW and developed by IPPs from across the country with strong local involvement in purchasing equity shares. Renewable energy sources contributed to the generation mix through solar IPPs that further contribute to climate resilience, and cover shortfalls during low rainfall. The government is committed to solar contributing 10% of the power on the grid. Increasing solar beyond this target and providing incentives to project developers to invest in utility-scale battery storage would further improve resilience. BIG ARUN: The 900MW Arun III project under construction since 2018 at Num in Sankhuwasabha (pictured, below) is a separate initiative by a different project developer using a different financing modality. The ‘Baby Arun’ version of Arun III was cancelled in 1995.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb.jpg" data-media-id="editor_7" data-image-id="20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb" data-rendition-name="original" width="1750" height="1312" loading="lazy" alt="30 Years after Baby Arun"> </figure>

original

674x448

610x380

500x500

400x266

400x240

400x203

301x200

1250x600

1084x550

thumbnail

viewImage

People Power

30 years after Baby Arun

High tech firms are power hungry, and the <a href="https://nepalitimes.com/here-now/those-who-stay">climate crisis</a> is driving them to seek <a href="https://nepalitimes.com/opinion/nepal-can-lead-in-zero-carbon">renewable sources of energy</a>. Nepal’s surplus electricity generation capacity coincides with this surge in global demand to power generative AI data centres. Data centres have become major drivers of electricity demand globally in the last two years, but the lack of <a href="https://nepalitimes.com/here-now/nepal-s-electric-transport-future-is-here">clean energy</a> remains a major hurdle to expansion. Along with coverage area and number of racks, a key parameter to measure use of <a href="https://nepalitimes.com/opinion/comment/tech-and-transition-in-nepal">information technology </a>in each country is the amount of power they use1 for data centres. For example, the US currently uses 50MW of data centres per million people compared to just 1MW in India. In Nepal, investment in data centres have just begun. About 1.5% of global electricity is currently going to power data centres and data transmission. Improvements in IT hardware, efficient cooling methods, and gains from the shift to efficient cloud and hyperscale data centres have allowed growth in energy demand to remain small even as data centre services have grown significantly since 2010. After 2022 this picture has begun to break down due to the exponential growth in power requirements for <a href="https://nepalitimes.com/here-now/nepal-in-the-decade-of-ai">AI </a>which far exceeds accompanying gains in energy efficiency.&nbsp; The growth of AI applications was made possible by breakthroughs in Deep Neural Network models and hardware to run them, enabling image recognition and generation, natural language processing and many other previously<a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/it-is-all-about-it-in-nepal,3887"> ‘high-compute applications’</a> which required a lot of computational power. These advances laid the groundwork for large language models such as <a href="https://nepalitimes.com/banner/chatgpt-news-about-nepal">GPT</a>-4o (OpenAI), Claude (Anthropic), Gemini (Google), Llama-3 (Meta/Facebook), Grok (xAI) among others. The growth of large language models and generative AI has changed the role of data centres from managing content, data storage and data processing to training large AI models and running AI inference to serve user applications from those models. But training <a href="https://nepalitimes.com/here-now/nepal-bhasa-on-google-translate">AI models</a> is compute-intensive, and requires high-powered hardware. Similarly, AI inference, which involves using trained models to make predictions based on new data, also demands significant energy due to the large and increasing number of user applications served by AI models. According to Bloomberg Intelligence, growth in investment into generative AI is expected to push data-centre electricity use by 4-10 times from current levels by 2030. Companies such as Google and Microsoft are already consuming as much electricity as The Netherlands. Many of the largest companies have also made ‘net-zero’ commitments, to generate no net greenhouse gas emissions by 2050, which they are struggling to uphold due to this unexpected increase in energy demand to power data centres.Big tech is therefore sourcing power from all the clean energy sources they can find: wind, solar and <a href="https://nepalitimes.com/multimedia/missing-pieces-of-the-hydropower-jigsaw">hydropower</a>. They have even invested in nuclear power plants to power AI data centres. As demand rises, companies will be looking for new geographies with abundant clean energy. Could this new reality present an opportunity for Nepal to market its surplus clean energy from hydropower and solar? The country could promote itself as a destination for data centres, as Bhutan is doing with its Gelephu Mindfulness City. Nepal’s data infrastructure, even including NEA and Ncell Axiata data centres, is not well developed. &nbsp;The recently announced partnership between the Chaudhary Group’s BLC Holdings, and India’s Yotta Data Services to build Nepal’s first supercloud 4MW data centre in Ramkot could pave the way for private sector investment into data centres in Nepal.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250120140144_dae5f9c304943d4efb156a9930b0ca1894b2f6b915abeb6c30d510e0f246e4a5.jpg" data-media-id="editor_9" data-image-id="20250120140144_dae5f9c304943d4efb156a9930b0ca1894b2f6b915abeb6c30d510e0f246e4a5" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="NEA"> <figcaption>Distribution System Control and Data Centre of Nepal Electricity Authority (NEA) in Siuchatar in Kathmandu. Photo: SONIA AWALE</figcaption> </figure>  Yotta already runs some of the largest hyperscale data centres in Mumbai and Delhi, and this investment could allow the company to be the provider of digital services in the Subcontinent’s high growth IT sector. To catch up with per capita IT services at the level of India, Nepal would need seven more Ramkot-sized data centres using about 30MW of power. With its readily available clean energy and proximity to large population centres in Northern India and Bangladesh, Nepal could in theory provide the compute infrastructure necessary to power the future AI training and inference services for local applications and markets.&nbsp; To provide IT services at the level that the US population currently consumes, Nepal would need 1,500MW of power just to power data centres for its own needs. While this is unlikely to happen anytime soon, Nepal could opportunistically provide data centre services for the upcoming AI needs of some of the 500 million people living in the Ganges basin. India is already a regional powerhouse in data centres and has about 1,600MW of capacity, and generative AI is estimated to push computational requirements with power needs expected to grow between 25-30% each year through to 2030. With the right investment climate, and the necessary investment into fibre optic infrastructure and IT parks, Nepal could leverage its plentiful power supply advantage to offer locations for a portion of this investment.&nbsp; This would provide a much needed boost to Nepal’s ongoing efforts to establish itself as a technology hub and provide jobs to the 15,000 IT professionals that are being trained in the country each year. Data centres are one part of a larger technology ecosystem. AI model training and maintenance require skilled expertise in every industry from finance, to train fraud detection models, to healthcare, to label X-ray and MRI images and test results and diagnostic data to build intelligent medical tools, and to the legal sector, to supervise generated contract documents. NTC’s recently installed XGPON network standard that can deliver up to 10 Gbps downstream speed and 2.5 Gbps upstream does provide the basic level of connectivity needed for AI applications, but it is only available in Kathmandu and needs to be expanded to other urban centres. Nepal’s investment climate for private companies remains far from ideal, and government regulations need to be relaxed to allow global companies and non-resident Nepalis to bring in investment to take full advantage of this new <a href="https://nepalitimes.com/business/digital-connectivity">digital infrastructure</a>. Amrit R Pant contributed with AI expertise while writing the article. Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his regular column in Nepali Times on global energy issues relevant to Nepal.

Bikash Pandey

Nepal as an AI power bank

As a micro-hydro engineer working in rural Nepal in the mid-1980’s, I struggled to find money to build power plants that could meet the energy demand along the Everest and Annapurna trekking trails. Communities in Lukla, Namche, Jomsom and Ghandruk needed energy to meet basic needs of trekkers, and provide value-added services for additional income. Tourists were prepared to pay for hot showers, cold beer, clean beds, and a varied menu. But resource limitation meant there were fewer and smaller power plants. The national electricity grid was then limited to urban areas and the country’s electrification rate was low and stayed below 20%. The Nepal Electricity Corporation (NEC) , the predecessor of NEA, had constructed a dozen small hydro projects for remote districts with no immediate prospects of being supplied by the grid.&nbsp; Some of these were in tourist areas but were woefully inadequate to supply more than domestic lighting load. The 240 kW Chokhopani small hydropower project, commissioned by NEC in 1984, to supply the Thak Khola region of Mustang, was overloaded within a couple of years of its construction after tourist lodges in Tukuche, Marpha, and Jomsom began plugging in electric space heaters and hot plates. Following the 1984 delicensing of generation from power plants of less than 100kW capacity, Nepal saw a dramatic surge in interest from rural communities to invest in <a href="https://archive.nepalitimes.com/page/micro-hydro-in-nepal-affected-by-the-spread-of-national-grid" target="_blank">micro-hydropower</a>. While smaller systems could meet the needs for power for home lighting and tv sets in non-tourist areas, communities along tourist trails wanted larger power plants to cook and heat with electricity and run refrigerators. The <a href="https://nepalitimes.com/banner/municipalities-want-to-manage-annapurna" target="_blank">Annapurna Conservation Area Project (ACAP)</a> provided a grant to cover 70% of the cost of the 50kW Ghandruk project. Completed in 1990, it was designed to supply 250 households and 20 hotels. However, to make sure there was sufficient power to connect the whole community, each hotel was limited to a subscription of one kW of power — not enough to meet cooking needs.&nbsp; The hotels were encouraged to turn on immersion water heaters at night to speed up cooking in the morning. Recognising that micro-hydropower projects could only partially supply their energy needs, ACAP also helped hotels install solar hot water systems for showers and import LPG for cooking. The 600kW Thame project in the Everest region was completed in 1995 with a grant from the Austrian government to supply 629 homes and tourism businesses of Namche Bazar, Khumjung and Thame. For the first time in Nepal, it was able to demonstrate how much value an abundant supply of electricity could add to mountain tourism. Electricity reduced pressure on scarce, high altitude biomass and provided an alternative for families that were caught between strict rules prohibiting firewood collection from the Sagarmatha National Park, and the need of increasing numbers of trekkers, guides, and porters.&nbsp; Electricity was used in place of firewood not only by hotels and cafes, but also in the kitchens of 60% of the households. Electricity from the Thame power plant allows Namche Bazar today to meet the fuel needs of more than 40,000 trekkers a year, double the annual visitors when it was built 30 years ago. The electricity supply also opened up new livelihood opportunities. Stores selling handicrafts and climbing gear, tea shops, pubs, restaurants, lodges, laundromats, cyber cafes, jacuzzi, water treatment and bottling plants, and three electricity-powered bakeries, and pizzeries all came up.&nbsp; Another early benefit from Namche’s electrification was the improvement in water supply because it could now be pumped up from a spring to a reservoir with slow-sand filtration at the top of the village. Piped water supply from the reservoir and a sewage system, also managed by the power utility, Khumbu Bijuli Company, allowed hotels to offer rooms with attached bathrooms with hot showers and charge significantly higher for rooms.&nbsp; Other electricity-enabled infrastructure include cell phone towers, of which Namche has two, and the potential for cable cars to take visitors to viewpoints and ropeways to transport goods.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241124101136_12b9599800b353fbc6fbefe1a8b69f2d83bb09c0b19e47d664edb9de3f9ea6d3.jpg" data-media-id="editor_2" data-image-id="20241124101136_12b9599800b353fbc6fbefe1a8b69f2d83bb09c0b19e47d664edb9de3f9ea6d3" data-rendition-name="original" width="2039" height="1000" loading="lazy" alt="Nepal can level up tourism with electricity NT"> </figure>  Since the earliest days of trekking tourism, the environmental carrying capacity of the local ecosystem has been limited by the availability of energy. Without access to commercial energy from the outside, the number of trekkers, and their accompanying support teams, that any region can host depends on the rate at which trees can regenerate there.&nbsp; High altitude areas like the Khumbu face a natural limit based on the slow rates at which trees can grow. Arid trans-Himalayan regions like Upper Mustang and Dolpo can sustainably harvest even less biomass. The government continues to restrict tourism areas in the trans-Himalaya, with fragile ecosystems, requiring foreign visitors to pay for permits.&nbsp; Trekking groups are required to carry their own fuel to avoid strain on the local ecosystem. In Upper Mustang the number of visitors is limited to 1,000 annually and requires each visitor to pay a $500 fee for a ten day visit. Other restricted areas include border communities in Humla, Gorkha, Dolpo, Manang, and Manaslu. Since then, Nepal’s electricity generation landscape has undergone a dramatic transformation. The country currently has a surplus from hydropower and solar energy. This is expected to keep growing for the foreseeable future. Harnessing this electricity to boost mountain tourism can enhance local livelihoods and reduce outmigration of youth. The tourism sector employs 1 million people and contributes 8% to Nepal’s GDP. In comparison, more than 3.5 million Nepalis work abroad and their remittances make up 27% of GDP. Growth in the tourism sector could significantly expand employment opportunities at home.&nbsp; Namche Bazar is proof that electricity can take mountain tourism to the next level both by increasing the carrying capacity of high Himalayan regions by substituting for biomass fuel, and increasing employment through value-added services and infrastructure development.&nbsp; Electrifying the country’s tourism sector has the potential to significantly increase its contribution to the economy, and take it closer to another tourism-powered South Asian country, the Maldives, where tourism’s share of the economy is 60%.&nbsp; Given that Nepal’s electricity is from renewable resources, any tourism it powers can also be marketed as producing minimal greenhouse gases. If tourists could be transported in electric vehicles to and from the airport and to the roadhead leading to their trekking destinations, it would further lower emissions. This is an additional selling point at a time when many environmentally conscious tourists are looking to lower their carbon footprint. The NEA can play an important role by increasing the supply, capacity, and reliability of electricity along existing, popular trekking trails. The extension of the national grid to Tilicho Base Camp last week is the right step. Even though the country’s electrification rate has now reached 99%, supply challenges remain. The task is made easier for NEA since practically all <a href="https://nepalitimes.com/opinion/people-power/decentralising-power-in-nepal" target="_blank">regions with tourism potential have hydropower projects</a> either operating or under construction within their own districts. This makes it much easier to ensure a reliable supply with good voltage. In the Annapurna region, electricity has reached nearly all communities with Ghandruk and Jomsom connected to the <a href="https://nepalitimes.com/news/nepal-electricity-demand-soars" target="_blank">national grid</a> in 2017 and 2018 respectively. However, without improved reliability of supply, tourism enterprises will continue to use firewood and imported LPG for cooking.&nbsp; In light of the damage caused by the <a href="https://nepalitimes.com/news/climate-breakdown-linked-to-thame-flood" target="_blank">glacial lake outburst flood that hit Thame in August</a>, the power supply for Namche and the region would be much more resilient if it was connected to the national grid. NEA also needs to extend transmission lines to Upper Mustang and other restricted areas that aspire to host higher tourist numbers than they are currently allowed.&nbsp; Investment in extending power supply along the 16 districts traversed by the Great Himalayan Trail would accelerate the development of green and sustainable tourism in those areas. For other tourism sites where NEA does not plan to extend the grid in the next five years, micro-hydro and solar energy will remain important solutions.&nbsp; The two 900 kW mini-hydro projects under construction to supply the villages of Ama Dablam and Monjo, both in the Everest region, are good examples of the support the <a href="http://www.aepc.gov.np/" target="_blank">Alternative Energy Promotion Centre </a>needs to continue to provide for off-grid power to support the tourism sector. Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his regular column in Nepali Times on global energy issues relevant to Nepal.

Nepal can level up tourism with electricity

Nepal’s national electricity grid is supplied with power from a remarkably decentralised array of 162 hydropower projects and 14 solar photovoltaic schemes spread across 43 districts, supplying power over the grid to 30 million people.
Another 249 hydropower projects and 14 solar projects are at different stages of construction, positioning 11 new districts to contribute power to the grid by 2030. Six of the country’s seven provinces generate hydropower as their main energy source, while Madhes Province generates solar energy.&nbsp;
While NEA (Nepal Electricity Authority) and its subsidiaries own and operate 20 generation stations, the remaining are owned and operated by Independent Power Producers (IPP). All but two of the IPPs are Nepali companies that have successfully mobilised over $2 billion in investment.
This investment has been spread widely across the country. Eleven districts generate more than 100MW each with Dolakha, Lamjung, Solukhumbu, and Ramechhap each exceeding 200MW (map). The average size of hydropower projects on Nepal’s grid is 15.5MW, while the average solar project is 4.2MW.
The average size of projects under construction is larger -- 39.5MW for hydro and 6.9MW for solar respectively.&nbsp;
For most hill and mountain districts, hydropower is easily the largest investment, private or public, in their history. &nbsp;
This decentralised power generation model is a relatively recent development for Nepal. In 1995 when the World Bank withdrew (adjoining article) its planned investment from the 201MW Arun III project, NEA had not envisioned the entry of the private sector. In fact, its published strategy was to mobilise international aid for hydropower projects larger than Arun III.
The well-known cancellation of Arun III in 1995 and the availability of alternative models led to Nepal's decentralised power development. It matters that this distributed generation and storage of electricity is close to the point of use.
Centralised power stations have been the norm for industrialised and emerging economies to achieve rapid and cheap electrification, taking advantage of economies of scale of large power plants.
Also in Nepal, when its vast hydropower potential was first quantified in the 1960s, plans were drawn up for mega hydropower projects with reservoirs such as Karnali, Kosi, and Pancheswar. None of these could be realised, however, due to lack of financing.&nbsp;
Donor funds could never be aggregated at the scale needed for the investments required, and the country was not attractive to the international private sector. Nepal opted not to invite India to construct its large hydropower projects to supply the Indian market the way Bhutan did.
It took the country 40 years to find its way -- generation led by private domestic investment supplemented by public sector involvement by the NEA.&nbsp;
The cancellation of Arun III resulted in the government signing expensive dollar-denominated power purchase agreements (PPA) with international producers like Khimti (60MW) and Bhote Kosi (45MW) to partially make up for the shortfall. These were against the wishes of NEA management.&nbsp;
It was in reaction to these expensive PPAs that engineers at NEA received permission to develop Chilime (20MW) with rupee-denominated PPA and the government at the time announced a standard tariff in NPR for power generated by IPPs.&nbsp;
Once NEA showed its willingness to sign these PPAs, hundreds of companies sprang up to apply for licenses to survey and construct small hydropower plants throughout the country.
Decentralised power development contributes to construction jobs and infrastructure investment, especially in remote districts where many of the best hydropower sites are located.&nbsp;
Construction of an electricity generation station provides at one go the two most important infrastructure any district needs to generate jobs — power and a road.&nbsp;
Decentralised generation provides energy security to load centres throughout the country since damage to power plants in one part of the country need not affect other areas that have their own generation. It also reduces transmission losses as large amounts of power do not have to be transported from one end of the country to another.
Nepal’s strategy of decentralised power development is coming to maturity in the era of the climate crisis, when the global response has been a surge in renewable energy investments and grids all over the world pushing to become decentralised.&nbsp;
Landslides, flooding and glacial lake outburst floods have always posed risks to infrastructure projects in the Himalaya, and climate breakdown has increased this risk with the severity and frequency of cloud bursts.&nbsp;
The 2024 monsoon has been particularly bad, temporarily shutting down NEA’s 456MW Upper Tamakosi, 60MW Upper Trisuli 3A, 40MW Chameliya, and 10MW Sunkosi projects,&nbsp;
It also downed the 36MW Balefi, 20MW Lower Modi, 18MW Middle Modi, and 7.5 MW Indrawati III operated by IPPs.
Nonetheless, there has not been any increase in load shedding because power plants across other river basins continued to generate without interruption.&nbsp;
Having power plants spread across two thirds of the country rather than concentrated in a few river valleys distributes the risk to the country’s entire power supply.&nbsp;
Adding solar energy to the generation mix diversifies the types of renewable energy available and contributes to power in the winter months. It also makes the grid more secure during periods of drought when hydropower production declines.&nbsp;
Solar energy is a perfect complement to hydro since by definition its production will peak during periods with low rainfall.
Distributed generation is shaping up to be an important component of Nepal’s decentralised energy system. This increases energy security to users and reduces transmission losses.
The roughly 10MW of rooftop solar PV systems that have been installed in the past year by hotels, factories, medical colleges and flour mills to reduce their electricity bills is an example of how it is catching on.
Decentralised and distributed generation do have additional costs in the need for more extensive power networks. Extending high voltage transmission lines to evacuate power from smaller local projects adds cost.&nbsp;
However, every power plant and the transmission line to access it has aided Nepal in accelerating electrification and strengthening power infrastructure to the district where it is located.
As networks become more complex, utility-scale battery storage, and the availability of distributed storage in electric vehicles, the grid needs to be made smarter to better manage the tens of thousands of generation and storage points Nepal is likely to have in the coming years. &nbsp;
Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his new regular column in Nepali Times on global energy issues relevant to Nepal. &nbsp;

Decentralising power in Nepal

Nepal has had an impressive growth in hydropower development over the past decade from 734MW in 2014 to a combined capacity of 2,625MW from solar and hydropower stations, with 95% of households connected to the grid. Investment to the tune of $5 billion, predominantly in domestic NPR, is estimated to have gone into new generation projects in this time to complete construction and invest in some 8,000MW of new power plants that are at various stages of design and construction. It is certainly reassuring to a population still suffering PTSD from years of brutal load-shedding to realise that Nepal is headed for long term power surplus, with prospects in 2024 for the first time to export more power than import from India, if the monsoon cooperates. One important question in a lot of people’s minds, however, is how Nepal’s generation of clean energy compares with the fossil fuel Nepal continues to import at an annual cost of almost $3 billion, and growing. Are we anywhere close to generating the hydropower and solar energy needed to replace the petroleum fuel that Nepal imports? At first glance it looks like the gap is discouragingly large. NEA sold just over 10 billion kWh or 10 TWh of electricity in 2023. In the same year, all the petroleum-based fuels the Nepal Oil Corporation (NOC) imported had a total energy content of 40TWh. It would seem that NEA and Independent Power Producers (IPPs) would need to complete construction of the full pipeline of 8,000MW on top of what they are already generating to match even the petroleum fuel we use today. Fortunately, electricity can be used more efficiently than fossil fuels. An LPG stove has a thermal efficiency of around 50%, reflecting the percentage of heat from burning the mix of propane and butane that is transferred to the pot. The rest goes into heating the burner, the counter-top, and the rest of the kitchen. An induction cooker on the other hand is able to transfer around 90% of the energy directly to the pot since the cooking surface does not even get hot itself. So, cooking with electricity can be accomplished with 45% less energy compared to LPG with the use of an efficient appliance.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240802120856_d0349977d5fb14944e7897b9bd8bad605348f6d9351fcc70a2e6cc7a178bc8dc.webp" data-media-id="editor_0" data-image-id="20240802120856_d0349977d5fb14944e7897b9bd8bad605348f6d9351fcc70a2e6cc7a178bc8dc" data-rendition-name="original" width="992" height="1245" loading="lazy" alt="Nepal turns on the electric switch NT"> <figcaption>INDUCTION STOVES: 90% of the energy in induction stoves is transferred directly to the pot, so cooking with electricity uses 45% less energy compared to LPG. PHOTO: CLIMATE AND CLEAN AIR COALITION</figcaption> </figure>  The end-use efficiency advantage is even more impressive when it comes to transportation. A petrol burning internal combustion engine converts only 20% of the energy the fuel produces into motion. The remaining 80% of the energy content of the petrol is lost as heat in the engine, requiring a radiator to keep the engine from overheating. An electric vehicle on the other hand uses high efficiency motors that have conversion efficiencies in the range of 80-85%. Even with the 20% ‘round trip’ losses in charging and discharging the battery, an EV uses less than a third of the energy to drive a kilometre than an equivalent petroleum fuel vehicle does. Since close to 95% of the petroleum fuel imported into Nepal is used to meet either road transportation or cooking needs, it is very encouraging that appliances already exist in the market for Nepal to transition away from petroleum fuel. Similar efficiencies exist for switching away from diesel irrigation to electric pumps and for a range of industrial processes to switch from using different fossil fuels to electricity. For the consumer to switch over to electric cooking and electricity-fueled transportation, the relative prices of each energy type are important, along with the improved efficiency. Here too the news is promising: NEA’s applicable domestic electricity tariff for users wanting to cook with electricity for cooking or charging EVs at home is a maximum of Rs11 per kWh. This compares with Rs18.5 per kWh of petrol and Rs9.83 per kWh of LPG. Once the thermal efficiency is taken into account, however, the effective price of petrol and LPG go up to Rs55.50 and Rs17.87 respectively for driving the same distance or cooking the same volume of food as one kWh of electricity. Two final barriers must be removed before consumers will be able to make the switch to efficient electric vehicles and cooking appliances. First: NEA must invest in strengthening transmission and distribution networks. It is not enough for there to be sufficient hydropower and solar energy generated if the power lines and transformers are not sufficiently sized to distribute the additional electricity needed for switching to electricity. Second: end-users must be able to afford EVs and cooking appliances. The government and banks have an important role to play in making this transition happen. The government needs to appreciate the tradeoff: provide tax incentives for people to purchase EVs and high efficiency electric appliances that can replace petroleum. Banks need to provide financing for users to be able to purchase EVs and appliances and pay for them from the savings in fuel. The good news is Nepal is very close to generating enough electricity to replace petroleum imports. Making up for 40TWh of petroleum fuel will likely require less than 20TWh of electricity. Extrapolating from the rate of growth of hydropower and solar generation over the past decade, Nepal could have sufficient clean energy projects online to be generating 30TWh as early as 2028. &nbsp; Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his new regular column in Nepali Times on global energy issues relevant to Nepal.

Nepal turns on the electric switch

After a week of violent and destructive protests, Nepal’s President Ram Chandra Poudel on Friday appointed <a href="https://archive.nepalitimes.com/regular-columns/Legalese/justice-in-chief,804">former Chief Justice Sushila Karki</a> as a caretaker Prime Minister to lead an interim citizens' government.&nbsp; Poudel had been in <a href="https://nepalitimes.com/news/what-next-nepal">closed-door discussions since Thursday</a> with youth members who spearheaded the protests, constitutional experts, the House Speaker, and the Army Chief. There was a consensus on the choice of Karki as candidate for interim prime minister, but her swearing-in was stalled due to a disagreement about Constitutional processes for her appointment.&nbsp; Youth delegates and Karki demanded that Parliament be dissolved before the appointment of the caretaker prime minister, while President Poudel had been arguing that Parliament would be automatically dissolved once the new council of ministers announced elections. Representing the GenZ movement, <a href="https://nepalitimes.com/here-now/who-or-what-is-hami-nepal">Sudan Gurung</a> (pictured, below) is said to have insisted that dissolution of Parliament first was non-negotiable because he did not trust the political parties. He is said to have added that he would call his supporters out into the streets, and the President relented. The military’s warning earlier that an emergency would be declared if there was no agreement tonight clinched it.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025091216098_cdd409c5824b578a04f05a43280e3f475d92bf7123d3a4565b4d720768fcc1b3.jpg" data-media-id="editor_3" data-image-id="2025091216098_cdd409c5824b578a04f05a43280e3f475d92bf7123d3a4565b4d720768fcc1b3" data-rendition-name="original" width="1080" height="600" loading="lazy" alt="Sudan Gurung"> <figcaption>Sudan Gurung of Hami Nepali during negotiations.</figcaption> </figure>  With this, Karki becomes Nepal’s first female prime minister, exactly a decade after she became the <a href="https://archive.nepalitimes.com/article/interview/a-woman-is-as-capable-sushila-karki,3375">country’s first female chief justice in 2016</a>.&nbsp; Nepalis, still shocked by the <a href="https://nepalitimes.com/news/nepal-s-8-september-massacre">death and destruction of the past week</a>, heaved a sigh of relief at the announcement, which was greeted as a victory of youth power for political reform led by the GenZ movement. Its initial anti-corruption protest on 8-9 September <a href="https://nepalitimes.com/news/kathmandu-burns-despite-pm-resignation">spiralled out of control into violence and arson</a> nationwide that claimed at least 51 lives. Several other candidates were floated for the caretaker prime minister’s post. Kathmandu Mayor Balen Shah and former head of the electricity utility Kulman Ghising were being considered, but both declined possibly because they want to contest the next national elections. Given her experience in the judiciary and zero tolerance for corruption, Karki was the favourite of various groups within the GenZ campaign.&nbsp; The site of the negotiations moved to the official residence of the president in Shital Niwas from the Nepal Army Headquarters on Thursday. The Army had come under criticism on social media and from civil society for detaining the President and not letting him speak or be a part of the negotiation.&nbsp; This fuelled public perception that the military had a soft spot for a return of the monarchy. There were widespread rumours on Thursday that king Gyanendra, who was ousted after the abolition of the monarchy in 2008, was trying to stage a comeback by piggybacking on the agitation. Writing on X, senior journalist Kishore Nepal revealed that the Chief of Army Staff Ashokraj Sigdel had allegedly asked Poudel to step aside and pave the way for the military to negotiate, to which the President is said to have replied: “I will not resign. Kill me instead and blame it on the protesters. Then you can do whatever you like.” Live broadcast of swearing in of Sushila Karki:&nbsp; <div class="embed-block"><iframe width="560" height="315" src="https://www.youtube.com/embed/53go4OxuOa0?si=Zd89QGIAX8-7Bm75" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe></div>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025091219094_41b0f97a5925ab6969e1413636bf073ae43262893a55d9c177cb1312dea52f0d.jpg" data-media-id="editor_8" data-image-id="2025091219094_41b0f97a5925ab6969e1413636bf073ae43262893a55d9c177cb1312dea52f0d" data-rendition-name="original" width="1280" height="851" loading="lazy" alt="Sushila Karki swearing in"> <figcaption>President ram Chandra Poudel swearing in Sushila Karki as the 42nd Prime Minister of Nepal.</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025091303098_8f2b6f98898c4cd73c271caa51b8e29d679a7385c249380aeb96d7cc2c3f6dba.png" data-media-id="editor_9" data-image-id="2025091303098_8f2b6f98898c4cd73c271caa51b8e29d679a7385c249380aeb96d7cc2c3f6dba" data-rendition-name="original" width="1480" height="924" loading="lazy" alt="Sushila Karki PM"> <figcaption>GenZ representatives with new Prime Minister Sushila Karki after her swearing in </figcaption> </figure>  COURAGE AND INTEGRITY Sushila Karki served as the chief justice between 11 July 2016 to 6 June 2017, and has been known for her frugal ways. She was a firebrand judge unafraid to ruffle powerful feathers, and as chief justice was behind ruling to impeach for abuse of office a powerful head of Nepal’s anti-graft body in 2016. She wrote that he had ‘<a href="https://archive.nepalitimes.com/regular-columns/Legalese/the-end-of-karkistocracy,827">neither the moral character nor qualifications for the post</a>’. Even before she became Chief Justice, Karki was one of the two judges on the bench that convicted the sitting Minister for Information and Communication, Jaya Prakash Gupta, of corruption in 2012. Then in 2016, a bench including Karki ruled against granting amnesty to former Maoist lawmaker and convicted murderer Bal Krishna Dhungel. Karki was born on 7 June 1952 in Biratnagar. She completed her undergraduate studies at Mahendra Morang College in 1972 before obtaining a postgraduate degree in political science from Banaras Hindu University in India three years later. This was followed by a Bachelor's in Law in 1978 from Tribhuvan University, and she started her law career as an advocate a year later. In 1985, Karki worked as a teacher at Mahendra Multiple Campus in Dharan, and was jailed for participating in the 1990 People’s Movement to overthrow the Panchayat absolute monarchy. She became a senior Advocate at the Nepal Bar Association in 2008 and was appointed an Ad-Hoc Justice at the Supreme Court in January 2009.&nbsp; On Thursday, there were supporters for other candidates for the post sloganeering against Karki’s nomination outside the Army Headquarters. Some on social media were also skeptical of her connection to the Nepali Congress (NC) party. Growing up in Biratnagar Karki was close to the family of B P Koirala, Nepal’s first elected prime minister in 1960. Her husband Durga Subedi was part of a group of underground Congress activists who hijacked a Royal Nepal Airlines plane in 1973, flying it to India to snatch cash belonging to Nepal Rastra Bank in the cargo hold.&nbsp; The money was used for the party’s pro-democracy campaign.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025091216098_1c030e7c42809a742e8082bff9663cec00b721eb48481dd40d4f632eaf44480e.jpg" data-media-id="editor_11" data-image-id="2025091216098_1c030e7c42809a742e8082bff9663cec00b721eb48481dd40d4f632eaf44480e" data-rendition-name="original" width="1838" height="1220" loading="lazy" alt="Sushila Karki"> <figcaption>Photo: SHAHIDUL ALAM</figcaption> </figure>  Karki has no love lost for the political establishment. In April 2017, the governing coalition under Maoist Prime Minister Pushpa Kamal Dahal <a href="https://archive.nepalitimes.com/article/editorial/lady-justice-sushila-karki,3693">submitted an impeachment motion against her</a> after the Supreme Court overturned his decision to install a favoured police chief, violating succession based on seniority. It was a political move backed by Dahal’s coalition partner Sher Bahadur Deuba of the NC who was waiting to become prime minister for the 4th time. CHALLENGES AHEAD With Karki now in charge of the interim government, she has the daunting task of forming a council of ministers made up of amorphous and disparate groups from the GenZ, technocrats, and current politicians. Karki has said she will not prevent members of her cabinet from contesting elections, which means those with electoral aspirations like Kulman Ghising, Balen Shah and Sumana Shrestha could be asked to join. Karki has her work cut out as she has to get her team members to pull in the same direction to hold free and fair elections. She also has to make sure she has the support of the military without giving the generals too much say, while also smartly maneuvering Nepal’s precarious geopolitical ties with its giant neighbours, China and India. But most of all, the new prime minister must lay the foundations to not just physically rebuild the judiciary, executive and legislature but also ensure that elections will produce a more accountable and efficient government. Read also: <a href="https://nepalitimes.com/editorial/trial-by-fire">Trial By Fire</a>, Editorial

Madam Prime Minister of Nepal

Many had never heard of <a href="https://www.haminepal.org/">Hami Nepal</a>, the organisation that is part of the GenZ movement that did not just topple the government this week, but <a href="https://nepalitimes.com/news/what-next-nepal">pushed Nepal’s political system into new, uncharted territory</a>. It was part of an organic coming together of various youth groups fed up with Nepal’s corruption, mismanagement and lack of accountability. Hami Nepal and its GenZ comrades are now part of the negotiations with the Army to form an interim government. Hami Nepal is a non-profit dedicated to supporting communities and individuals in need, guided by its motto ‘For the People, By the People’. Its core mission is to assist individuals and communities in need, particularly during emergencies and crises, with a focus on directly connecting donors with recipients, and delivering aid efficiently and transparently. It was set up after the 2015 earthquake, but was formally registered and gained recognition in 2020 during the Covid-19 pandemic. Hami Nepal is led by 36-year-old civic activist Sudan Gurung who started the organisation after he lost his own son in the 2015 earthquake.&nbsp; Leading up to the events this week, it played a central role in guiding the demonstrations, using its Instagram and Discord platforms to circulate protest information and share guidelines. Other GenZ groups used their own WhatsApp groups and other fora.&nbsp; Among the 20 or so volunteers is Ronesh Pradhan, who spoke to <a href="https://nepalitimes.com/news/nepal-s-gen-z-protest-turns-deadly">Nepali Times on 8 September </a>morning during the GenZ rally, before the violence escalated.&nbsp; “The voices of young people matter. We can’t keep being ruled by the same old men,” Pradhan said. “Our generation is the future and if there are older leaders in government, they need to be competent and accountable. We are ready to lead this country forward.” Hami Nepal’s earliest visible campaigns include donating more than 400 blankets to Bir Hospital’s Covid unit in 2022, creating a plasma and oxygen bank during the pandemic, and distributing school jackets to children in rural districts. More recently, it mounted a relief effort in response to the 2023 Jajarkot earthquake, reaching over 13,000 families with shelter, food, and medical support. The organisation was also associated with the two-month ‘Save Ghopa’ campaign, demanding effective and smooth administration of the BPKIHS (B P Koirala Institute of Health Sciences) in Dharan. The organisation was also actively engaged in providing rescue and relief during the Kagbeni and Sindhupalchok floods this year. It even sent aid to Turkey after its 2023 earthquake. After the Kavre floods last year, Hami Nepal donated solar lights. Funding for Hami Nepal comes directly from public donations, with a policy of channeling 100% of received funds for aid distribution. Volunteers self-finance administrative costs, and the group publishes detailed expenditure figures, regularly sharing updates and transparency reports through their social media and website which it launched at its Annual General Meeting in Bhaktapur last year.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250911090920_cd40c472bd7e06cc038a2d77a431cba777b6f53e4374a0216c9af2c4feb56c88.jpg" data-media-id="editor_3" data-image-id="20250911090920_cd40c472bd7e06cc038a2d77a431cba777b6f53e4374a0216c9af2c4feb56c88" data-rendition-name="original" width="1080" height="719" loading="lazy" alt="Who, or what, is Hami Nepal?"> </figure>  Following the death of Nepali student Prakriti Lamsal at KIIT University in India earlier this year, Hami Nepal advocated for justice using its Instagram account, raising concern about the safety of Nepali students. Its advocacy platform started with rescue and relief, and Hami Nepal managed to develop a track record for efficient campaigns and transparency in Nepal’s humanitarian landscape. But its work pushed the group to realise that there was a deeper malaise in Nepali society. Its #youthsagainstcorruption campaign on social media platforms gained rapid momentum, and that led to the rally on 8 September. Read also: <a href="https://nepalitimes.com/news/nepal-s-8-september-massacre">Nepal’s 8 September massacre</a>, Shristi Karki The international #Nepobaby trend on TikTok propelled the rally even more, and young Nepalis used it to expose the scions of powerful politicians and politically-connected influencers who were exhibiting their flashy lifestyles on social media while citizens struggled with joblessness, corruption and poor service delivery. Public anger reached a tipping point when the UML-NC coalition led by Prime Minister K P Oli announced a sweeping ban on major social media platforms citing tax revenue, cyber security, and lack of content moderation. Netizens, civil society and media, however, saw it as the latest authoritarian attempt by the government to clamp down on free speech, increase surveillance of citizens and constrict Nepal’s open society. Susmita Khadka, 22, told us at the rally: “Politics is everywhere. Gen Z has the most platforms, and we want a revolution.” Leading up to 8 September, the GenZ movement disseminated information and reassured participants with volunteers readily available for help, medical support, and assistance. It put up a protest support helpline so that students needing assistance could get help. As the protests intensified, leaving at least 20 dead outside Parliament, and forcing Prime Minister K P Oli to resign, Hami Nepal shifted into a mediator role, engaging in talks with officials and seeking GenZ’s views on future leadership.&nbsp; Influencers like TikToker Nimesh Shrestha publicly backed the group, amplifying their voice in ongoing negotiations with the Nepal Army alongside other GenZ representatives. However, as the protests escalated on 9 September, <a href="https://nepalitimes.com/news/kathmandu-burns-despite-pm-resignation">resulting in massive arson and vandalism of public and private property</a>, many GenZ activists disavowed association with the attackers, saying their movement had been infiltrated. The group backtracked, with Gurung saying he was not the leader of the protests.&nbsp; Meanwhile, others accused Hami Nepal for singlehandedly speaking with the Army chief, and said that they did not represent GenZ’s collective voice. Most GenZ supporters backed <a href="https://archive.nepalitimes.com/regular-columns/Legalese/justice-in-chief,804">Former Chief Justice Sushila Karki</a> as their candidate for interim prime minister in an online group. Not everyone in the GenZ movement agrees with that choice, with support for Kathmandu Mayor Balen Shah, even though he has endorsed Karki’s appointment. Dharan Mayor Harka Sampang rushed to Kathmandu on Wednesday to push his own candidacy. Hami Nepal has supported Balen Shah to lead the country for the next five years, not just during the interim period, and have called on the public to share their posts supporting Shah to amplify the message. With the old guard gone, there is a power vacuum with multiple actors with competing interests to fill it. GenZ’s youth-led activism has brought new energy for political reform, but its real test begins now — whether it can unite Hami Nepal and other sections to negotiate with the Nepal Army.&nbsp;

Who, or what, is Hami Nepal?

As arson and violence swept Nepal’s capital, Prime Minister K P Oli resigned on Tuesday. However, this did not stop angry protesters from setting fire to the Parliament building, homes of ministers, hotels and other property. Singha Darbar is also in flames. Meanwhile, former Prime Minister Sher Bahadur Deuba and his wife, Foreign Minister Arzu Rana Deuba were also attacked in their house. As protests spread, Police withdrew from guarding official buildings, and thousands of protesters entered the federal government secretariat at Singha Darbar, ransacking and setting fire to buildings.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120916_a86227e5556356134565053699ed9599f8b268d0c22815fa94410ffac52a49fa.jpg" data-media-id="editor_0" data-image-id="20250909120916_a86227e5556356134565053699ed9599f8b268d0c22815fa94410ffac52a49fa" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="de-escalation"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120916_995f368b8c372bf2f99b6a9c25c2816e941413b3c19d0f94458c07604391b039.jpg" data-media-id="editor_1" data-image-id="20250909120916_995f368b8c372bf2f99b6a9c25c2816e941413b3c19d0f94458c07604391b039" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="Kathmandu protests"> </figure>  Kathmandu Valley was shrouded in smoke under heavy monsoon clouds on Tuesday afternoon with an acrid smell covering the capital. The minister’s quarters in Bhaisepati were set on fire, the convention centre in Godavari, the Hilton Hotel and Chhaya Centre in Thamel, and the headquarters of all three main parties were also burning.&nbsp; The widespread arson was sparked by the <a href="https://nepalitimes.com/news/nepal-s-8-september-massacre">killing of at least 19 young protesters</a> as they tried to storm Parliament on Monday. A peaceful rally by youth against corruption and nepotism by Nepal’s GenZ movement in Kathmandu escalated after the killings. With the prime minister out of the picture, the government not visible and the security forces in retreat, protesters have had the run of the three cities of Kathmandu Valley.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120916_207c3c25f8aa9bd0934b8c98ccee1221e3a062815cfcb1e211deddb4dccd6511.jpg" data-media-id="editor_3" data-image-id="20250909120916_207c3c25f8aa9bd0934b8c98ccee1221e3a062815cfcb1e211deddb4dccd6511" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="Kathmandu protests"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120920_bb2c0f273dc95ef62c58b5f55045c58cbddc4b3b8f619e938be76ef2cda69468.jpg" data-media-id="editor_4" data-image-id="20250909120920_bb2c0f273dc95ef62c58b5f55045c58cbddc4b3b8f619e938be76ef2cda69468" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="Kathmandu protests"> </figure>  Nepal’s celebrity cricket captain Paras Khadka has appealed to to call off the agitation, saying: “The prime minister you wanted to kneel has already knelt.” Former prime minister and Maoist ideologue Baburam Bhattarai called for the formation of an interim government that included some young student leaders. He called for the agitating groups to find a solution from within the Constitution and a directly elected presidential system. All members of the opposition RPP and the RSP have resigned from Parliament, while party supporters entered the Nakkhu Jail and freed the RSP leader Rabi Lamichhane who had been detained for the past 8 months by the Oli government on charges of embezzlement. Some of the protesters also want an end to federalism, which was also the demand of opposition parties like the RSP and the pro-monarchist RPP. Chief Minister Satish Kumar Singh has stepped down. Many of the protesters have voiced support for Kathmandu Mayor Balen Shah, who &nbsp;posted on Facebook calling on the GenZ protesters to “be ready to talk to the Army … but only after Parliament has been dissolved”. Army Chief Ashok Raj Sigdel and the heads of security agencies have called on the protesting groups to excercise restraint and to find a solution through talks.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120912_cd93a827631d987ee52723aa270faf45aa42e4322eb8f06304b28215e3cea28a.jpg" data-media-id="editor_5" data-image-id="20250909120912_cd93a827631d987ee52723aa270faf45aa42e4322eb8f06304b28215e3cea28a" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="Kathmandu protests"> </figure>  Although the <a href="https://nepalitimes.com/news/nepal-s-gen-z-protest-turns-deadly">protests were sparked by the GenZ campaigners</a>, disparate groups, including monarchists, anti-federalists, disgruntled Maoists, dissidents from the mainstream parties, and others have joined the protests. But one thing that united them is extreme frustration with the mainstream parties and their leaders past and present who have taken turns running and ruining the country.

Kathmandu burns despite PM resignation

A rally organised by young Nepalis across the country against corruption, impunity and restrictions on freedom of expression on Monday turned into one of the deadliest days in the country's recent history. As of Monday evening, the death toll from the protest had reached 19, with 17 killed in Kathmandu and two in Itahari. More than 350 people were injured. Police have arrested more than 40 protesters. Home Minister Ramesh Lekhak of the Nepali Congress resigned, and there have been calls from opposition parties for the entire NC-UML coalition to step down and announce early elections. The protest followed a growing online movement led by young Nepalis exposing the ostentatious display of privilege by the offspring and relatives of politicians and other public figures, which had sparked discourse about nepotism, corruption and the wealth gap in Nepal. Confronted with joblessness and corruption, Nepali youth looked to the recent street movement in Bangladesh, where a student uprising against quota-based recruitment for government jobs expanded last year and toppled the autocratic Sheikh Hasina government. In Indonesia, public frustration with government apathy boiled over into a national movement last month after it emerged that elected officials and the political elite enjoyed perks while citizens faced a cost of living crisis. In the Philippines, as disaster mitigation-infrastructure projects failed to work, citizens began to question where the funds for such projects were actually going. This prompted social media users to look deeper into the lives of the politically-connected figures who flaunted their lavish lifestyles online. In Nepal public outrage has been building up against nepotism, corruption and impunity in government. Facing unemployment at home, nearly 10% of Nepalis, mostly youth, toil overseas or leave Nepal in search for better lives abroad. Meanwhile, the well-connected posted images online of themselves enjoying holidays abroad paid with the ill-gotten wealth of relatives in high places. Young GenZ Nepalis, frustrated with establishment politicians, had called for an anti-corruption, anti-government movement across the country. This coincided with the Nepal government’s decision on 5 September to ban 26 social media sites for failing to register and pay taxes in Nepal.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250908120956_53f97cf0de3ddc8d5c823686f56e71981df922d0ecd2989ad842245acdf71aa6.jpg" data-media-id="editor_0" data-image-id="20250908120956_53f97cf0de3ddc8d5c823686f56e71981df922d0ecd2989ad842245acdf71aa6" data-rendition-name="original" width="1600" height="1200" loading="lazy" alt="Gen Z protest"></figure>  Faced with the government's social media blockade, the protests took to the street. The movement was supposed to be apolitical, and focused against corruption. It garnered support from public figures and opposition leaders, some of whom conveniently forgot that they had been in government when the TikTok ban was imposed in Nepal in 2023. On Monday morning, protesters showed up at Maitighar with slogans and placards, many of them college students, even school children. The organisers had called for young Nepalis to join in their uniforms, believing that it would protect them from violence that might occur during the course of the day. By mid-morning, thousands of Nepalis had gathered at the Mandala intersection, playing music and chanting slogans. The mood was almost festive. Shortly after noon, however, a rally that had begun peacefully descended into violence after protesters broke the police barricade in Baneswor to storm Parliament. Police first began firing tear gas and water cannons, and then live ammunition at demonstrators. The Kathmandu district administration is said to have authorised full use of force against protestors who vandalised public property after protestors infiltrated the Parliament grounds.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025090818090_84e4a5bdcf19aa3cbf03831140120c88d9f3fe5a12d47041588fea7409988e67.jpg" data-media-id="editor_1" data-image-id="2025090818090_84e4a5bdcf19aa3cbf03831140120c88d9f3fe5a12d47041588fea7409988e67" data-rendition-name="original" width="1200" height="1600" loading="lazy" alt="Gen Z protests"><figcaption>Photo: SUDIKSHA TULADHAR</figcaption></figure>  Organisers Hami Nepali had requested demonstrators to go home as the protests turned deadly, saying that those who stormed Parliament were not associated with them, hinting that the rally had been infiltrated by radical groups. But by that time, the demonstration had got too large to contain. In the ensuing violence, hundreds were left injured, including journalists, and 17 dead so far in Kathmandu. Nepal’s leadership and security forces do not seem to have learnt their lessons about managing mass protests after the pro-monarchy demonstrations in March in which two people were killed. The indiscriminate use of force against unarmed Nepalis turned into a massacre. The emergency wards in Kathmandu are filled with those with bullet wounds on their legs, arms and heads. Hospitals have called for blood donations. At the time of publishing, there has been no statement from the Prime Minister, who before the protest on Monday had belittled GenZ youth as being naive, wet behind the ears, and their movement being ‘led by provocateurs’. Oli has presided over a slew of Bills to constrain the press, social media, and civil society, he has silenced and mowed down competitors and critics within his own party. This week, the UML got rid of age and term limits for party chairmanship, effectively clearing the way for 74-year-old Oli to head the party for the foreseeable future. Also feeding into the anger in the GenZ protest was a CCTV clip of a young woman being hit on Saturday at a zebra crossing by the car of a provincial minister in Godavari. The video of the car speeding away without stopping went viral on TikTok, one of few social media platforms still functioning.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025090818090_35799a98e5a7f5f865bb6f94633059d2baa66ec57ea0d396ab020f2f8f912387.jpg" data-media-id="editor_2" data-image-id="2025090818090_35799a98e5a7f5f865bb6f94633059d2baa66ec57ea0d396ab020f2f8f912387" data-rendition-name="original" width="854" height="641" loading="lazy" alt="Gen Z protest"><figcaption>Photo: SANGYA LAMSAL</figcaption></figure>  Oli fuelled the outrage by dismissing the victim’s injury as “minor”, and accusing political rivals of magnifying the issue. Opposition leaders and members of civil society have called for the government to resign en masse, and the fourth-largest party in Parliament, the RSP, has called for a snap election. As per his agreement with the NC, Oli is supposed to hand over power early next year to its leader ’s Sher Bahadur Deuba. Some analysts have suggested that if Oli did the handover now, he could help defuse the situation and earn brownie points ahead of the 2027 elections. But such political calculation would belittle the tragedy that has befallen the families of the 19 who were killed on Monday. Nepal’s political leadership cannot think that just reshuffling its three-card prime ministerial deck will quell public anger now. Nepal’s next generation wants to uproot the rot of corruption from politics, governance, and the bureaucracy. It wants elected leaders to deliver services, provide jobs and raise living standards. Monday’s massacre has only made them angrier, and bolstered their resolve to lead from the front.