The Korean ambassador expressed his interest in expanding investment and technical assistance in Nepal, pointing out the need for a smooth and stable policy in energy projects.
What you should know
The ‘Nepal-Korea Energy Cooperation Seminar-2025’, aimed at expanding Korean investment and technology participation in the energy sector in Nepal, has concluded in Kathmandu. The seminar, jointly organized by the Korean Embassy in Nepal and the Independent Power Producers Association, Nepal (IPPAN), aims to advance the cooperation between the two countries towards a strategic partnership in the energy sector.
At the event, Ambassador of the Republic of Korea to Nepal Park Tae-young made it clear that Korea is interested in investing in Nepal. He said that Korea is ready to cooperate with Nepal through financial assistance as well as technical assistance. 'We are still involved in various energy projects. A more convenient and stable policy is needed to attract foreign direct investment,' he said.
IPPAN Chairman Ganesh Karki said that the seminar was a reflection of the historical continuity of Nepal-Korea relations. Noting that the contribution of the private sector in Nepal's energy production is significant, he said that the energy trade agreements with India and Bangladesh have opened the possibility of exporting 15,000 megawatts of electricity in the next 10 years. He said that the private sector will be a major partner in achieving this goal.
Karki said that along with electricity generation, hydropower projects have made socio-economic contributions in areas such as employment generation, infrastructure development, and education, health, and drinking water. He also mentioned that Korean assistance through organizations such as KOICA and Korea Exim Bank has contributed to Nepal's energy infrastructure and human resource development. He said that there is great potential in expanding cooperation through business-to-business and public-private partnership (PPP) models, smart grids, energy storage, green finance and innovation in the future. At the event, Secretary (Energy) of the Ministry of Energy, Water Resources and Irrigation, Chiranjivi Chataut, said that Nepal-Korea cooperation has moved from traditional development assistance to strategic investment, technology transfer and private sector-led partnerships. He mentioned the 216 MW Upper Trishuli-1 Hydropower Project as an example of Korean investment and technology. The project under construction under the leadership of a Korean company is one of the largest foreign direct investments in Nepal.
Stating that the Upper Trishuli-1 project is a symbol of trust and partnership, Secretary Chataut said that it clearly proves Nepal's investment potential and Korea's engineering capabilities. He informed that the government has set a target of generating 28,500 MW of electricity by 2035 under the 'Energy Development Decade' announced by the government. According to the target, 13,500 MW of electricity has been allocated for domestic consumption and 15,000 MW for cross-border trade.
Stating that Korea is an important partner for Nepal's energy transformation, Secretary Chataut said that there is great potential for Korean participation in large hydropower projects, transmission infrastructure and grid modernization, and green hydrogen and future energy solutions. He said that investment in Nepal is gradually becoming safer due to the long-term electricity trade agreement with neighboring countries.
At the seminar, Yongjin Hong, Managing Director of Nepal Water and Energy Development Company, shared the experiences of Upper Trishuli-1, which is under construction with Korean investment. He also informed that the project is targeted to be commercially produced in 2026 as per the plan. Other representatives presented their views on the possibilities and challenges faced while investing in Nepal's energy sector.
At the program, former Secretary to the Government of Nepal Madhu Prasad Bhetuwal spoke about the government's policy and investment-friendly environment in the water resources sector.
