Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: For the first time in Nepal’s history, the Nepali Army is entering the energy trade sector, preparing to construct three solar energy projects with a combined capacity of 23.5 megawatts. These projects will be executed through the Army Welfare Fund (Sainik Kalyankari Kosh), marking the institution’s debut in the power generation and trade industry.
Named the Sainik Kalyankari Solar Power Project Block, the initiative will include the development of three distinct solar plants—of 5 MW, 10 MW, and 8.5 MW capacities—located in the Sainamaina area of Syangja district. The Army has already obtained the survey license for these projects from the Department of Electricity Development, clearing the way for pre-construction planning and further regulatory approvals.
Although Nepal Army has long been engaged in various infrastructure and national security-related projects—including road construction, airport security, and hydropower support—this is the first time it is venturing into commercial electricity generation. The project details, including investment structure, construction model, and operational framework, have not yet been fully disclosed.
According to sources within the Army Welfare Fund, the Nepal Army is currently initiating discussions with the Nepal Electricity Authority (NEA) for a Power Purchase Agreement (PPA) to sell the electricity generated from the projects into the national grid. Once the PPA is signed, construction will move forward at full speed, sources added.
This energy venture is part of a broader diversification strategy by the Army Welfare Fund, which already manages hotels, agriculture farms, and hydropower assets. By expanding into solar energy, the Army appears to be positioning itself as a long-term player in Nepal’s renewable energy sector, which aligns with global trends toward sustainability and carbon neutrality.
Experts say the Nepal Army’s entry into solar energy could bring both opportunities and challenges. While it adds investment capacity and execution strength to Nepal’s underperforming clean energy sector, it may also raise regulatory, transparency, and competition concerns, especially as the military is a non-traditional actor in the open energy market.
If completed as planned, the project would boost local energy generation, potentially reduce import dependency during daylight hours, and strengthen Nepal’s energy resilience. It could also serve as a pilot for future military-led energy ventures, particularly in rural or security-sensitive zones where private firms often hesitate to invest.
The Ministry of Energy, Water Resources and Irrigation is expected to make further formal announcements once the Power Purchase Agreement process progresses. Until then, stakeholders across Nepal’s energy, governance, and investment sectors are watching closely how this ambitious military-led solar initiative unfolds.
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