KATHMANDU, July 8: Energy experts and industry leaders have urged the Government of Nepal to prioritize domestic consumption of electricity through industries and digital infrastructure instead of relying solely on power exports, arguing that the country could generate far greater economic value by exporting computing services.
Speaking during the first session of the Power Nepal Conclave 2026, organized by Nepal Republic Media on Wednesday, panelists stressed the need to transform electricity into a driver of productive economic growth.
The discussion titled "From Electricity Consumption to a Production-Oriented Economy" was moderated by Nepal Republic Media Managing Director Samriddhi Gyawali.
Dilip Agrawal, chairman of WorldLink Communications, said Nepal should move beyond the conventional approach of exporting electricity in its raw form.
Pointing to the rapid global growth of artificial intelligence, Agrawal said Nepal's cool climate offers a natural advantage for operating green data centers by reducing cooling costs by around 15 percent.
Nepal starts exporting electricity to India
"Instead of selling electricity cheaply to neighboring countries, Nepal can establish green data centers and export computing power worldwide, generating revenue worth hundreds of billions of rupees," he said.
He, however, noted that data centers are not yet recognized as industries by the government, preventing them from accessing concessional electricity tariffs.
Sanjaya Kumar Shrestha, senior vice president of Butwal Power Company, cautioned against expanding electricity generation without ensuring adequate market demand and commercially viable pricing.
He said the private sector should currently prioritize peaking run-of-river hydropower projects, while reservoir-based projects require significantly larger investments and assured access to international markets.
Dr. Sandeep Shah, chairman of Pashupati Renewables, warned that climate change is reducing hydropower generation during winter, with output from some projects falling below 20 percent of installed capacity as glaciers shrink.
He advocated combining hydropower with solar energy to meet winter demand, describing high-altitude areas such as Mustang as ideal locations for solar power generation.
Shah also called for greater policy stability in power purchase agreements to attract foreign investment and said the government should take responsibility for developing transmission infrastructure.
Meanwhile, Jitendra Basnet, director general of the Department of Industry, said the government is working to improve the investment climate through policy reforms.
He said authorities are developing an integrated online system to strengthen one-stop services and resolve inconsistencies among existing laws.
Basnet added that the government is preparing a production-based incentive policy and is also considering granting industry status to service sectors, including data centers.
