Nepal: Floods prompt reevaluation of hydropower strategy and push for solar energy
The August 26 flash floods on the Nepal-China border caused significant damage to Nepal's hydropower infrastructure, wiping out or damaging 281 megawatts of installed capacity and affecting 388 MW under construction. The disaster has sparked debate on whether Nepal should rethink its export-driven hydropower strategy or adopt better-engineered plants. Some experts argue that the flood should prompt Nepal to prioritize domestic consumption over exports, citing physical disaster risk and falling electricity prices in India. The disaster also threatens Nepal's newly achieved net-exporter status and is accelerating calls to scale up solar power. Projects with underground powerhouses held up well, pointing to project locations, longer access tunnels, and early-warning systems as key resilience factors, though these upgrades could raise project costs by 10-12%.