A SWOT Analysis of Nepalese Hydropower Policy

Hydropower, in which Nepal has comparative advantage, has a potential to contribute to Nepal’s energy security and sustainable development. The government of Nepal enacted the Hydropower Development Policy in 2001 (HDP-2001) as an overarching policy to coordinate all policies forthcoming in this sector. This paper has critically analysed HDP-2001 by applying the Ecosystem services-based Strength, Weakness, Opportunity, and Threat (SWOT) technique. The paper has evaluated peer-reviewed scholarly articles, secondary data, and government publications available in public domain. The strengths and weaknesses of the policy were analysed by applying seven specific indicators. The research indicates that HDP-2001 has been successful in overcoming some of the pertinent challenges in Nepalese hydroelectric industry, however it also faces several limitations on account of climate change, economic dislocations, effective monitoring, ensuring competitiveness, delivering fair price to the consumers, and institutional governance issues. Designing a practical mitigation plan, while being aware of its limitations, could be helpful in minimizing the impact of these exogenous factors