Since Nepal has moderately high solar potential countrywide, with variations due to altitude and geography. The use of correct systems, such as photovoltaic and concentrated solar systems, is quite important between higher-altitude and mid-hill regions.

ng to Kathmandupost.com, www.nepalenergyforum.com, and

a2dfacility.unido.org, the following elements should be considered.

1. Seasonal Imbalance in Nepal’s Hydropower

Nepal’s run-of-river hydropower plants operate near full capacity during the monsoon but drop to roughly one-third of installed capacity in winter, creating a sharp seasonal gap. To meet winter demand, Nepal imported 1,854 GWh in FY 2022-23 at up to ₹16 per kWh—more than double the export price in summer.

2. Solar Potential and Battery Storage Advances

Solar Resource and Cost Trends

• Nepal enjoys 300 sunny days per year, with average solar radiation of 4.7 kWh/m²/day, making it highly suitable for photovoltaics.
• Global solar PV costs have decreased significantly, from $0.46/kWh in 2010 to $0.04/kWh today, with projections as low as $0.022/kWh by 2030. In contrast, hydropower costs remain around $0.06/kWh and face social-environmental constraints.

Battery Storage Technology

• Lithium-ion Battery Energy Storage Systems (BESS) now achieve round-trip efficiencies up to 90% and rapidly declining costs.
• Typical BESS lifespans span 15–20 years, making them well-suited for daily balancing but less optimal for long-duration, seasonal storage without periodic replacement.

3. Integrating Solar, Batteries, and Hydropower

Smart Inverters and Two-Way Grids

Advances in smart inverters enable real-time matching of solar output to local demand, minimizing grid imports. Time-of-day metering and net metering allow excess solar to flow back into the grid, enhancing flexibility and reducing wastage of monsoon surplus.

4. Case Studies and Pilot Projects

• PSH Feasibility Studies: Japan International Cooperation Agency (JICA) is evaluating pumped storage sites near Begnas and Rupa lakes, plus the Lower Seti Pumped Storage Project, to harness monsoon surplus for winter generation.
• Smart Solar-Battery Microgrid: At Laxmi Steel Factory, a 1 MWp solar array coupled with 2 MW/4 MWh batteries and AI-driven management provides 100% diesel-free backup, demonstrating industrial-scale resilience.
• Solar-Hydro Synergy: Research with TERI and ANU highlights how pairing PV with PSH can smooth hydropower variability and avoid high-cost winter imports.

5. Economic and Policy Considerations

• Grid Upgrades: Enhanced transmission lines (400 kV) and distributed intelligence are vital to accommodate bidirectional flows and diverse energy sources.
• Financing Models: Blended public–private investment, concessional loans, and carbon-credit mechanisms can lower upfront costs for BESS and PSH projects.
• Regulatory Frameworks: Updating tariffs, incentivizing time-of-use pricing, and streamlining permitting will accelerate deployments.

6. Outlook and Recommendations

By combining falling solar and battery costs with Nepal’s topography and hydrological assets, a flexible, resilient energy mix can emerge—one that buffers seasonal swings, cuts import bills, and deepens climate resilience.