Renewable Energy

July 2026

Chapter Overview

Nepal holds extraordinary hydropower and solar potential; China is the world's dominant renewable energy developer. The commercial complementarity is clear, yet Nepal has no formal power trade agreement with China, has removed Chinese developers from at least six projects under Indian pressure, and is foregoing a price advantage worth approximately 2.5 times its current Indian export rate. This section examines the structural, regulatory, and geopolitical constraints on Nepal-China energy cooperation and sets out a parallel-track strategy for advancing the northern relationship without foreclosing the southern one.

Author

SUYASHA SHAKYA | CONSULTANT, NEF

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