JANAKPURDHAM: Madhesh is widely regarded as the region with immense potential for solar energy. However, efforts of the Madhesh Province Government to harness this potential have not gained momentum due to government negligence and legal ambiguities.
Following the formation of the provincial government, the federal government allocated Rs 10 million to Madhesh for the solar energy sector in fiscal year 2020/21. The federal government sent another Rs 60 million over the next two fiscal years. However, because the provincial government was unable to spend those funds, the federal government has now ceased allocating the budget altogether.
Initially, the provincial government brought a plan to install a solar energy system within Madhesh Bhawan, the provincial administrative center, by allocating an additional Rs 20 million. Although the Ministry of Physical Infrastructure Development prepared a Detailed Project Report (DPR) for the plant, the budget could not be implemented because the necessary operational procedures were not in place, and the Nepal Electricity Authority (NEA) refused to approve the plan.
Civil Engineer Samjhana Lamichhane, an information officer at the Ministry of Energy, Irrigation, and Water Supply of the provincial government, said the primary bottleneck is a legal conflict between the federal and provincial tiers. Furthermore, a shortage of specialized technical staff has left the ministry unequipped to execute complex energy plans.
The ministry does not have staffers with expertise in solar energy.
The provincial government’s struggle to harness solar energy dates back several years. In 2019, then-Energy Minister Om Prakash Sharma introduced a plan to provide subsidies to community schools and FM radio stations interested in installing solar power plants. The goal was to allow them connect surplus energy to the national grid. However, NEA’s restrictive regulations prevented these projects from ever launching, provincial government officials say.
To address these systemic issues, the provincial government introduced the Provincial Electricity Act 2020. This law was intended to manage the identification of resources, distribution systems, and the establishment of a provincial electricity board and regulatory commission. However, since the federal government retains nearly all authority over the power sector, the provincial act cannot be fully implemented until federal laws are amended to allow for provincial rights and revenue sharing.
Administrative shortcomings have also complicated the situation. For instance, the “Solar Energy Special Program Operation and Subsidy Mobilization Procedure 2023” was designed to install solar systems in hospitals, schools, and for women-run enterprises. The procedure also envisioned harnessing solar energy for water supply and irrigation, and implementing solar farms in partnership with the private sector. It also did not materialize as the federal government mistakenly categorized the grant as capital expenditure rather than recurrent expenditure, making it impossible to move forward under existing guidelines, according to Lamichhane.
Additionally, since the proposed sites for solar farms are classified as agricultural land, there were concerns that large-scale projects would displace farmers.
Dr Bhogendra Jha, former vice chairperson of the Madhesh Policy and Planning Commission, sees the failure as a fault of both governments. He said the federal government treats the provinces as mere development units rather than autonomous entities. “Until constitutional rights are genuinely transferred to the provinces, such stagnation will continue,” he added.
Former Chief Minister Lal Babu Raut blamed the federal government’s bad intentions for the failure of high-profile international investments. Referring to the 250-megawatt solar project agreement between Canada’s SkyPower and the Chaudhary Group (CG), Raut said even though the promoters had identified suitable land in Bardibas for the project, it collapsed because the NEA refused to sign the necessary power purchase agreements.
Although the Chaudhary Group Energy Infrastructure (CGEI) has received survey licenses for solar farms in Parwanipur (30 MW) and Dhalkebar (120 MW), these plans have not moved forward due to a lack of cooperation from the NEA.
The province’s first five-year periodic plan has largely failed to meet its targets.
While Madhesh possesses the land and sunlight required for solar energy, a lack of technical knowledge among the public and an inability to secure foreign investment have kept these goals on paper. The Second Plan (2024/25–2025/26) states that only 0.8% of the population currently uses solar energy for lighting.
While large-scale projects have struggled, some progress has been made through alternative energy initiatives supported by the British Embassy. This includes the generation of 4 MW of solar energy.
According to Parbata Bhatta, Deputy Director of the Alternative Energy Promotion Center, 126 institutional solar systems and over 2,800 solar irrigation systems are currently operational in the province. They have a combined capacity of 208.5 KW.
A total of 2,828 solar irrigation systems have been installed across the province. The government aims to conduct feasibility studies for new irrigation systems in the current fiscal year.
