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Riding the wave of a historic election victory that secured a clear majority, the Rastriya Swatantra Party (RSP) is preparing to lead the government for the next five years. As the party transitions from the campaign trail to the corridors of power, an aggressive overhaul of Nepal’s energy sector has emerged as a central pillar of their immediate governing agenda.

Drawing directly from their election manifesto, the newly mandated RSP government aims to transform the nation’s energy landscape through massive production goals, sweeping bureaucratic reforms, and a strategic pivot towards maximizing domestic electricity consumption.

Ambitious 30,000 MW Target and “One-Door” Bureaucracy

At the heart of the new government’s energy strategy is a pledge to declare an “Energy Development Decade” with the target of achieving 30,000 megawatts of installed electricity capacity.

To realize this, the RSP plans to dismantle the notorious red tape that has long plagued infrastructure projects. The new administration will replace the current convoluted process - which requires energy developers to navigate 8 different ministries and 23 departments - with a streamlined “one-door” service. Furthermore, existing laws regarding land, forests, and the environment will be amended to facilitate smoother project execution, and the government has committed to taking full responsibility for the peace and security of hydropower projects during their construction.

Empowering the Private Sector and Renewable Energy

The RSP government is set to draft a new energy and water resources policy to align with their development decade. A major shift will be the integration of the private sector into areas previously dominated by the state. The government plans to incentivize private sector participation in the transmission and distribution of electricity, as well as in energy trade. Additionally, the licensing period for energy projects will be standardized to a uniform 50 years.

The new administration is also looking beyond traditional hydropower. The manifesto outlines plans to build infrastructure for energy storage, utilizing battery and pumped storage technologies. For solar energy, a “net-metering” system will be introduced, allowing citizens to sell electricity generated from rooftop solar panels. The establishment of large solar farms on non-arable hilly terrains will also be heavily promoted.

Powering Domestic Industry and Lowering Household Tariffs

Rather than solely focusing on exporting raw electricity, the RSP government emphasizes utilizing clean energy to fuel domestic economic growth. The administration plans to guarantee reliable electricity supplies to major industrial consumers, including steel, cement, herb processing, chemical fertilizer plants, and high-tech data centers.

For the average citizen, the government plans to restructure electricity tariffs. The new pricing model will reduce the cost of electricity as household consumption increases, encouraging a shift toward electric cooking and heating. Through these measures, the government aims to drastically raise the annual per capita electricity consumption to 1,500 kilowatt-hours by 2035.

Cross-Border Energy Trade

While domestic consumption is the priority, the RSP also plans to leverage Nepal’s surplus energy for regional economic diplomacy. The government will pursue aggressive diplomatic initiatives to promote energy exports to neighboring India and Bangladesh. This will be supported by the expansion of cross-border transmission infrastructure and the signing of short, medium, and long-term energy trade agreements to establish Nepal as a highly reliable energy supplier in South Asia.

With a clear mandate from the voters, the RSP now faces the task of translating these bold manifesto promises into actionable policy over the next five years, potentially redefining Nepal’s economic and energy future.