Flowing Forward: Nepal’s Hydroelectric Future Enhanced by Innovative Energy Storage


Australia’s Hornsdale Power Reserve, a powerhouse in energy storage, boasts one of the country’s largest units, capable of reserving up to 150 MW in its advanced lithium-ion batteries. On the other side of the globe, the Bath County Pumped Storage Station in Virginia, USA, stands as a venerable giant in pumped hydro storage, operating since 1985. This monumental project strategically utilizes two reservoirs at different elevations to adeptly store and release water, playing a pivotal role in providing grid stability and flexibility. Meanwhile, Germany, recognized for its leadership in renewable energy adoption, has pushed the boundaries with the ADELE (Adiabatic Compressed Air Energy Storage for Low Environmental Impact Electricity Storage) project in Aachen. Employing innovative techniques within underground caverns, ADELE compresses and stores air during periods of excess energy, releasing it when demand peaks. These are only few examples of stride taken around the world for Energy Storage System (ESS).

Nepal, known for its breathtaking landscapes and abundant water resources, has made significant strides in harnessing hydroelectric power. With a considerable portion of its energy generation coming from hydropower, the nation faces a unique challenge — how to efficiently store and manage the surplus electricity produced during peak seasons. Energy storage systems (ESS) around the world offer valuable insights and solutions to optimize Nepal’s hydroelectric potential. ESS allows us to store energy and provide it to the grid whenever needed.

Energy Storage Methods Worldwide:

Pumped Hydro Storage:

Many countries globally, including the United States and China, rely on pumped hydro storage. It involves pumping water to an elevated reservoir during periods of low energy demand and releasing it to generate electricity during peak demand.

Battery Energy Storage Systems (BESS):

Lithium-ion batteries, widely used in electric vehicles and consumer electronics, are gaining popularity for grid-scale energy storage. Lithium-ion batteries stand as the linchpin in the contemporary landscape of energy storage systems, epitomizing a revolutionary force in efficiency, versatility, and sustainability. Their high energy density allows for the storage of substantial energy.

Compressed Air Energy Storage (CAES):

CAES systems store energy by compressing air and storing it in underground caverns. When electricity demand rises, the compressed air is released, driving turbines to generate electricity.

Nepal’s Hydroelectric Challenge:

Nepal’s hydroelectricity production undergoes pronounced seasonal fluctuations, marked by a surplus during the rainy season and diminished output during dry periods. The hydroelectric infrastructure’s reliance on water flow dynamics renders it susceptible to variations in precipitation and river discharge. During peak rainy seasons, increased water flow augments energy generation capacity, leading to an excess of electricity production. Conversely, during drier periods, the reduced water flow results in diminished power output. Compounding this issue, the electricity demand plummets during nighttime, leading to a situation where a considerable amount of generated energy is underutilized and essentially wasted. These variations pose substantial challenges to the stability and efficiency of the electrical grid, necessitating the implementation of sophisticated energy storage solutions to efficiently manage and balance the erratic generation patterns and demand fluctuations inherent in Nepal’s hydroelectric power generation. The adoption of advanced energy storage technologies becomes imperative to store surplus energy during peak periods and release it during low-demand intervals, ensuring optimal grid stability and maximizing energy utilization efficiency.

Advantages of Energy Storage Systems for Nepal:

Grid Stability:

ESS ensures a stable and reliable power supply by balancing the electricity grid during peak and off-peak hours.

Peak Load Management:

Storing excess energy during periods of low demand and releasing it during peak hours helps manage fluctuations in electricity demand.

Renewable Energy Integration:

ESS facilitates better integration of intermittent renewable sources, such as hydroelectric power, into the grid by smoothing out variations in generation.

Reduced Wastage:

Energy storage minimizes wastage of surplus electricity during periods of low demand, ensuring efficient utilization of generated power.

Recommended Energy Storage Solutions for Nepal:

Pumped Water Storage

Nepal’s unique topography presents an opportune environment for the implementation of pumped hydro storage, effectively transforming the landscape into a natural “water battery” for efficient energy management. The concept involves the strategic creation of reservoirs at distinct elevations, capitalizing on the country’s varied terrain. During the rainy season, characterized by heightened water flow and surplus hydroelectric production, excess energy can be harnessed to pump water from lower to higher elevations, effectively storing potential energy. Subsequently, during periods of lower energy production or heightened demand, the stored water is released from the higher reservoir to the lower one, passing through turbines to generate electricity as it descends.

Lithium-Ion Batteries:

The diminishing cost and escalating efficiency of lithium-ion batteries position them as a compelling and practical option for Nepal’s energy storage needs. This trend is primarily driven by advancements in battery technology, economies of scale in manufacturing, and increased market competition. The modular and scalable nature of lithium-ion batteries is particularly advantageous for Nepal’s diverse energy landscape. These batteries can be deployed in various locations, ranging from urban centers to remote areas, accommodating the geographical diversity of the country. Their modularity allows for the creation of customized energy storage solutions tailored to specific requirements


As Nepal embarks on the continued expansion of its hydroelectric capacity, the imperative of integrating advanced energy storage systems becomes increasingly evident for the optimization of power generation and the assurance of grid stability. The utilization of water battery technology, capitalizing on the country’s natural terrain, offers a nuanced solution. Creating reservoirs at different elevations becomes a strategic means of efficiently managing the surplus energy generated during peak seasons and releasing it when demand is high. Additionally, the integration of lithium-ion batteries, given their decreasing costs and increasing efficiency, provides a versatile and scalable solution that can be deployed across diverse landscapes. By adopting these advancements, Nepal not only reinforces its position as a trailblazer in clean energy but also establishes a robust foundation for a sustainable and resilient future. Such a proactive approach is also essential for mitigating the risk of continuous power disruptions from Nepal Electric Authority, ensuring uninterrupted operations for businesses and effective power supply for homes. Embracing these technological strides is not merely an option but a necessity and demand of time.

Source: Setopati – Prasanna Aryal