Evaluation of Surplus Hydroelectricity Potential in Nepal until 2040 and its Use for Hydrogen Production via Electrolysis

The abundant hydro resources in Nepal have resulted in the generation of electricity almost exclusively from hydropower plants. Several hydropower plants are also currently under construction. There is no doubt that the surplus electricity will be significantly high in the coming years. Given the previous trend in electricity consumption, it will be a challenge to maximize the use of surplus electricity. In this work, the potential solutions to maximize the use of this surplus electricity have been analysed. Three approached are proposed: (i) increasing domestic electricity consumption by shifting the other energy use sectors to electricity, (ii) cross-border export of electricity, and (iii) conversion of electricity to hydrogen via electrolysis. The current state of energy demand and supply patterns in the country are presented. Future monthly demand forecasts and surplus electricity projections have been made. The hydrogen that can be produced with the surplus electricity via electrolysis is determined and an economic assessment is carried out for the produced hydrogen. The analysis of levelized cost of hydrogen (LCOH) under different scenarios resulted values ranging from 3.8 €/kg to 4.5 €/kg.