Nepal

In 2022, Nepal exported $4.62k in Hydrogen, making it the 144th largest exporter of Hydrogen in the world. At the same year, Hydrogen was the 511th most exported product in Nepal. The main destination of Hydrogen exports from Nepal are: Pakistan ($2.98k) and Canada ($1.64k).
The fastest growing export markets for Hydrogen of Nepal between 2021 and 2022 were Pakistan ($2.98k) and Canada ($1.64k).
In 2022, Nepal imported $1.48M in Hydrogen, becoming the 106th largest importer of Hydrogen in the world. At the same year, Hydrogen was the 535th most imported product in Nepal. Nepal imports Hydrogen primarily from: India ($1.24M), China ($149k), United Arab Emirates ($61.5k), Qatar ($12.5k), and France ($9.4k).
The fastest growing import markets in Hydrogen for Nepal between 2021 and 2022 were India ($185k), China ($88.1k), and United Arab Emirates ($61.5k).
 

Nepal's Green Hydrogen Policy (GHP) [1] , introduced in 2024, is a forward-thinking initiative aiming to leverage the country's abundant hydropower resources for clean energy production. Overall, Nepal's Green Hydrogen Policy represents a bold step towards a cleaner and more secure energy future. By addressing the challenges and ensuring effective implementation, Nepal can become a frontrunner in the green hydrogen revolution.

Policy Objectives [1] :

• Promote Green Hydrogen Production: The GHP aims to create a conducive environment for companies and individuals to invest in green hydrogen production facilities. This includes offering incentives like tax breaks, subsidies, and streamlined permitting processes.

• Encourage Green Hydrogen Utilization: The policy seeks to promote the use of green hydrogen in various sectors like transportation, industrial processes, and even fertilizer production. This might involve building hydrogen refueling stations, providing subsidies for hydrogen-powered vehicles, and supporting research and development in hydrogen technologies.

• Develop Regulatory Framework: The GHP establishes a framework for regulating the production, storage, transportation, and use of green hydrogen. This ensures safety standards are met and environmental concerns are addressed.

Potential Benefits:

• Energy Security: Nepal heavily relies on imported fossil fuels, making it vulnerable to price fluctuations and supply disruptions. GHP can significantly reduce this dependence by creating a domestic source of clean energy.

• Environmental Sustainability: Green hydrogen production emits no greenhouse gases, unlike fossil fuels. This can significantly contribute to Nepal's decarbonization goals and combat climate change.

• Economic Growth: The GHP has the potential to create new industries and jobs related to green hydrogen production, storage, and utilization. This can further boost Nepal's economic development.

While Nepal's Green Hydrogen Policy (GHP) was introduced in 2024, the specific details regarding the regulatory framework are likely still under development. The policy itself outlines the intention to establish a framework, but specifics might not be entirely finalized yet.

Possible Focus Areas of the Regulatory Framework: 

• Safety Standards: Regulations will likely address safety protocols for the entire green hydrogen lifecycle, encompassing production, storage, transportation, and use. This could involve aspects like:

• Safe operation of electrolysis facilities to prevent accidents.

• Standards for hydrogen storage and transportation to minimize risks of leaks or explosions.

• Guidelines for safe use of hydrogen in vehicles and industrial applications.

• Environmental Considerations: The framework might establish regulations to ensure minimal environmental impact from green hydrogen production. This could include:
  • Water resource management during electrolysis, considering potential water usage concerns.

  • Wastewater treatment procedures to address any potential pollutants from the process.

  • Monitoring and mitigation measures for potential environmental hazards.

• Permitting and Licensing: The GHP likely aims to streamline permitting processes for establishing green hydrogen production facilities. However, specific regulations will likely outline the licensing requirements and approval procedures.

• Quality Standards: Regulations might establish quality standards for green hydrogen produced in Nepal. This ensures consistency and promotes international trade opportunities.

Nepal is a country brimming with potential for renewable energy. Its unique geography and forward-thinking government policies position it to become a leader in clean energy production. However, limitations in infrastructure pose a challenge to fully unlocking this potential

Renewable Energy Potential:

• Hydropower Powerhouse: Nepal holds the title of the country with the highest theoretical hydropower potential globally, estimated at a staggering 50,000 MW according to the International Renewable Energy Agency. Currently, only a fraction of this potential is harnessed, leaving significant room for growth.

• Solar Strength: Nepal's position near the equator translates to abundant sunlight, making it ideal for solar power generation. Developments in rooftop solar and utility-scale solar farms hold significant promise, as highlighted by the World Bank¹

• Wind Power Potential: While less prominent, some areas in Nepal have suitable wind resources for wind energy projects, as identified by the Asian Development Bank (ADB)³. Exploring this option can further diversify the renewable energy mix.

• Biomass Option: Nepal's agricultural residues and forest litter offer potential for biomass-based energy generation, particularly in rural areas. This can contribute to a more sustainable energy landscape, as discussed in a report by the Clean Energy Transition Plan and Pathway⁴

Infrastructure Challenges:

• Transmission and Distribution: Nepal's current power grid infrastructure is limited in capacity and faces geographical hurdles due to the mountainous terrain, as highlighted by the International Energy Agency (IEA) [1] . Upgrading and expanding the grid is crucial for integrating large-scale renewable energy sources.

• Energy Storage: Harnessing the full potential of solar and wind energy requires robust energy storage solutions. Technologies like pumped hydro storage have potential, but further development is needed, as emphasized in a report by 1.5°C national pathway explorer - Climate Analytics [2] .

• Rural Electrification: Despite significant progress, a portion of Nepal's rural population still lacks access to reliable electricity. Extending the grid to remote areas remains a challenge, as noted by the Asian Development Bank (ADB)³.

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• Focus on Microgrids: Developing microgrids powered by mini/micro hydro, solar, and wind, particularly in remote areas, can provide localized solutions. This approach is encouraged by the Clean Energy Transition Plan and Pathway⁴

• Public-Private Partnerships: Collaboration between the government and private sector can accelerate infrastructure development and attract investment in renewable energy projects. The Asian Development Bank (ADB) highlights Public-Private Partnerships as a key strategy for Nepal's energy sector³

• Technological Advancements: Investing in research and development of advanced grid management systems, energy storage solutions, and distributed generation technologies is crucial. The International Renewable Energy Agency (IRENA) emphasizes the importance of technological advancements for a successful energy transition.

Overall, Nepal's future in renewable energy is bright. By addressing infrastructure limitations and implementing effective policies, Nepal can become a leader in clean energy production.

There have been a couple of significant announcements regarding green hydrogen projects in Nepal:

• GreenZo-API Power Collaboration (2022): This agreement involves GreenZo, a Delhi-based renewable project consultant, and API Power, a hydro and solar power producer in Nepal. The collaboration aims to develop a cumulative capacity of 50 MW of green hydrogen production facilities in Nepal by 2025[1].

• Kathmandu University Project (ongoing): While not a large-scale commercial project yet, Kathmandu University has been undertaking a research and development project focused on green hydrogen production. This initiative, funded by the Nepal Oil Corporation, explores the technical feasibility and economic viability of green hydrogen production in Nepal. The project also includes the development of a pilot hydrogen vehicle and refuelling station to demonstrate its potential applications[2].