ADB to Mobilize Over $200 Million for Nepal's Power Grid Expansion
The Asian Development Bank (ADB) has signed two Transaction Advisory Services agreements with Nepal's government and the Nepal Electricity Authority (NEA) to attract private investment in transmission and battery storage projects under a Public-Private Partnership model. The projects—a 134-km transmission line and 100–150 MWh of battery storage—are expected to draw more than $200 million in private capital, strengthening grid reliability and renewable energy integration.
KATHMANDU, Oct 4 — The Asian Development Bank (ADB) has signed two agreements with the Government of Nepal to support private investment in power transmission and battery energy storage projects under a Public-Private Partnership (PPP) model.
The agreements, signed by ADB Country Director for Nepal Arnaud Cauchois and Nepal Electricity Authority (NEA) Managing Director Dirghayu Kumar Shrestha, mark ADB's first Transaction Advisory Services (TAS) agreements for power transmission and battery storage projects in Nepal.
Under the arrangement, ADB will assist the NEA with feasibility studies, project agreements, procurement, tendering and capacity building. The projects are expected to attract more than US $200 million in private sector investment.
One project involves the development of an approximately 134-kilometre, 400-kilovolt transmission line connecting Tingla, New Khimti and Dhalkebar. The line is expected to improve grid reliability, support renewable energy integration and strengthen Nepal's capacity for regional electricity trade.
The second project will establish 100–150 megawatt-hours of utility-scale battery energy storage systems (BESS) at selected NEA substations. The storage systems will help manage peak electricity demand, integrate variable renewable energy and provide grid-support services.
ADB Country Director Arnaud Cauchois said Nepal's electricity access has increased from 58 percent in 2016 to 99 percent in 2025, making reliable transmission and storage infrastructure increasingly important.
"The challenge now is to translate this growth into reliable domestic supply and sustained export capacity. Achieving this will require the timely expansion of transmission and battery storage infrastructure, with private sector participation playing a critical role in mobilizing the capital, expertise, and efficiency needed to deliver these investments at scale," he said.
NEA Managing Director Dirghayu Kumar Shrestha said the agreements would help advance strategically important transmission and battery-storage projects while attracting private investment to Nepal's power sector.
Together, the projects are expected to strengthen Nepal's electricity network, improve the evacuation of power from generation projects and encourage greater private-sector participation in transmission and energy storage.