The Eight edition of Power Summit 2023 will be held on April 18-19 (Baisakh 05-06, 2080) at Hyatt Regency, Kathmandu with the theme "Broadening Green Energy Markets". The Summit is being organized by the Independent Power Producers' Association, Nepal (IPPAN) with the patronage of the Ministry of Energy, Water Resources and Irrigation, Government of Nepal, and support of the Office of Investment Board, Nepal. The Summit shall be inaugurated by the Right Honourable Prime Minister of Nepal in presence of dignitaries from the Ministry of Energy, Water Resources and Irrigation, and South Asian Leaders.
This largest power sector event in Nepal shall have 800 participants from all across the power sector including 300 international delegates from more than 30 countries. The Embassy of India, Kathmandu shall be the country partner and the Indian delegation shall be in very large numbers. Our key sponsors for the summit include development partners like the World Bank, IFC, FMO, USAID, power trading companies, power producers, financial institutions, transmission and distribution companies, Consulting companies, vendors, think tanks, and other power sector stakeholders.
The energy sector has come a long way since we organized the first Power Summit in 2006. Nepal has now entered into an era of self-reliance in electricity generation and heading towards being an energy-surplus nation. With the recent addition of the 86MW Solu Dudhkoshi Hydropower project to the national grid, the installed capacity has reached 2520MW. An additional 600MW capacity shall be added in 2023 with a total reaching 6700MW by 2027. The private sector contribution is expected to reach 80% of installed capacity from the present 55%. With sluggish peak demand at 1700MW, the current year's wet season surplus is expected to reach 1000MW. The megawatt numbers are big now and hydropower is real prosperity agenda for Nepal.
Most people have already forgotten what it means to have ten hours or more of power outages daily. Most have also forgotten about their inverters and generators. The energy sector is on the right track. This is a good time to focus our attention on the market aspects of green energy.
Nepal has no coal or other fossil fuels but has an abundance of green energy including solar, wind, biomass, and hydropower. The past decade has seen real improvements on the supply side of Nepal’s green energy and now the time has come to focus on the demand side. We are now ready to “broaden green energy markets” first at home, and then in the region. Economics can sometimes be simplified as simple supply and demand. It is often the demand side that will provide the needed incentives for qualitative supply. Demand will dictate the way we manage the supply side of green energy.
Investments made without really understanding the demand side leads to wastage and losses. For example, which plants should generate power and at what time of the day could be managed if we had a better idea of the green energy market and the nature of demand. Demand forecasts help pace the investment on the supply side in an economy that is short of cash. This conversation needs to happen now because we are ready to go to the market with our green energy.
Broadening the green energy markets means enabling transportation, agriculture, industry, cooking, and commerce to both grow rapidly and make a complete switch to green energy away from fossil fuels Nepal has to import at a huge cost to the economy. Young men and women go to work in countries that have fossil fuel and send home remittances that we then use to buy fuel from these same countries. This vicious cycle can and must be broken. This is why the time is right to broaden the market for green energy.
Nepal has been listed as one of the most vulnerable countries due to the impact of climate change. The whole world is already experiencing the impact and rising costs due to the excess greenhouse gases in the atmosphere. Nepal has made a commitment to become a net zero country by 2045. A big part of this is to be able to generate and use green energy and displace fossil fuels from our economy.
The Summit will have thirteen sessions covering issues relating to Markets for Nepal’s Power, Transmission infrastructure, Demand for Nepal’s hydropower, Technology and innovation, thinking beyond Hydropower to Solar, Hydrogen, Regulatory framework, cross-border power trade, Sustainable and climate-resilient development, Environment Social and Governance, Regionals interest and Energy Security, Projects of 5000 MW shall be showcased from Project Bank of IBN and the private sector. The investors shall have a unique opportunity to discuss and understand power projects for investments. Workshops and sideline events including CEO Forum, and ESG practices shall be organized during the Summit.
The discussions during the summit are expected to pave the way for identifying and opening doors for markets for Nepal’s green energy. We aim to provide a forum for discussion, discourse, and debate by all key experts of the power sector and this event cannot be missed by anyone who is looking forward to being part of Nepal’s power development journey. The Summit is also expected to ink many agreements and understanding for future development and market creation. We invite all concerned to use this platform to do business and help Nepal move ahead with its green energy development agenda.