Analysis of Factors Affecting the Economic Performance of Hydropower Projects in Nepal
Khatri, Rabindra (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202505079765
https://urn.fi/URN:NBN:fi:amk-202505079765
Tiivistelmä
The hydropower sector of Nepal possesses substantial potential to push forward economic development through environmental friendly power generation. Performance problems exist in the sector which stem from funding issues combined with engineering challenges and environmental constraints as well as policy limitations. This investigation examines Nepalese hydropower project economics through research on funding strategies and cost expansion and operational execution and external risk impacts. The research performs extensive viability evaluations on projects to present guidelines improving investment tactics and regulatory frameworks. This investigation studies the vital components which affect successful economic hydropower projects in Nepal through studies of financing methods alongside assessments of cost overruns and operational effectiveness and external risk elements.
The project performance declines because of three primary elements that lead to delayed construction and regulatory uncertainty combined with financial restrictions that raise cost expenses and produce decreased investment returns. Operations of energy facilities in Nepal struggle financially because of unpredictable climate patterns and limited infrastructure, and insufficient maintenance efforts. The hydropower industry of Nepal can achieve better economic outcomes through improved planning, together with risk-reduction methods and new policies, which will solve current problems. The research presents key recommendations for investors and project developers, as well as legislators, to enhance their decision-making abilities through financial analysis methods for sustaining hydropower infrastructure viability. To achieve the highest possible use of hydropower in Nepal while promoting economic growth and securing regional energy stability, the nation needs to strengthen its regulatory systems alongside better financial practices and technological advancements.
The project performance declines because of three primary elements that lead to delayed construction and regulatory uncertainty combined with financial restrictions that raise cost expenses and produce decreased investment returns. Operations of energy facilities in Nepal struggle financially because of unpredictable climate patterns and limited infrastructure, and insufficient maintenance efforts. The hydropower industry of Nepal can achieve better economic outcomes through improved planning, together with risk-reduction methods and new policies, which will solve current problems. The research presents key recommendations for investors and project developers, as well as legislators, to enhance their decision-making abilities through financial analysis methods for sustaining hydropower infrastructure viability. To achieve the highest possible use of hydropower in Nepal while promoting economic growth and securing regional energy stability, the nation needs to strengthen its regulatory systems alongside better financial practices and technological advancements.