Dhungana Urges Temporary Pause in Belaka Solar Process Pending Broader Koshi Plan
Dragon Media Correspondent
Galab Bahadur Dhungana has urged the government to temporarily suspend further advancement of the Swiss Challenge process for a proposed 1,000-megawatt solar project in Belaka, Udayapur, until its implications for a wider energy and industrial plan for the Koshi region are assessed.
Dhungana says Nepal should evaluate the solar proposal alongside a proposed green urea initiative that would link renewable power with green hydrogen, ammonia and fertilizer production. He argues that decisions on individual projects could constrain the country’s long-term industrial options if they are made without a coordinated national plan.
According to a NepalKhabar report published on October 9, Renew Holdings has proposed a solar project in Belaka. The company says it would use storage batteries to supply a minimum of 400 megawatts to the national transmission system around the clock. The proposal includes about 3,000 bighas of government land, 1.54 million solar panels and an estimated cost of around NPR 80 billion.
Renew Holdings has said it aims to complete the project within nine months of receiving the required approvals. The company’s cost estimate has risen from NPR 63 billion to about NPR 72 billion and now to around NPR 80 billion, which its executive director has attributed to higher panel prices, transport costs and import difficulties. These figures and the proposed schedule have not been independently verified.
The proposal also includes growing crops such as ginger, onions, garlic and rosemary alongside the solar panels. The company says the plan would combine agricultural production with solar power generation.
The Investment Board Nepal has instructed its office to prepare a draft procedure for a Swiss Challenge process, under which other interested companies could compete based on the initial proposal. The government has not yet approved the procedure. The Nepal Electricity Authority is expected to study the project’s impact on the transmission system, while the Electricity Regulatory Commission is to prepare a tariff framework. The project has not received final approval for construction.
A green industrial proposal
A note prepared by Dhungana and Dr. Biraj Singh Thapa describes the green urea proposal as an integrated industrial project. It envisages using renewable electricity to produce hydrogen, converting the hydrogen into ammonia, and combining the ammonia with carbon dioxide captured from Udayapur Cement to produce urea.
The note says the concept was initiated by Nepal Green Hydrogen Company. The company describes itself as the custodian of the project vision and says it does not seek exclusive control over future development. It proposes government-led development followed by an open and competitive process for investors.
The note estimates that Nepal’s annual urea demand exceeds 800,000 metric tons, while annual imports are around 600,000 metric tons. It puts the government’s annual fertilizer subsidy spending at approximately NPR 28.8 billion. The proposed first phase would produce 200,000 metric tons of urea annually at an estimated investment of US$965 million. Later phases could raise production to one million metric tons a year, with total investment estimated at US$7.05 billion.
The note also estimates production costs of US$285–460 per metric ton, compared with an assumed landed cost of about US$700 per metric ton for imported urea. These production, cost and demand figures are pre-feasibility estimates and would require validation through a detailed project report and independent technical and financial studies.
The note proposes about 350 megawatts of agrivoltaic solar capacity for the first phase, on suitable government land west of the Koshi River, opposite the Koshi Tappu area. Under its proposed solar-hydropower exchange, daytime solar electricity would be supplied to the transmission system, while the Nepal Electricity Authority would provide continuous power to the plant. The note says solar capacity could eventually expand to as much as 2,000 megawatts.
The Belaka proposal and the green urea plan therefore envisage different ways of supplying electricity. The Belaka proposal relies on storage batteries to provide a continuous supply of at least 400 megawatts. The green urea plan proposes using the transmission system and hydropower to provide continuous electricity to an industrial plant. A 400-megawatt supply around the clock amounts to 9.6 gigawatt-hours per day; the required storage capacity, seasonal output and transmission losses would need to be examined.
Available information does not establish that the two proposals require the same land or transmission infrastructure. Dhungana says that is precisely why the government should assess the sites, grid capacity, land requirements, environmental impacts and power arrangements together before advancing the investment process.
His proposed course of action
The green urea note recommends a government-led project development programme under the Prime Minister’s leadership, with Investment Board Nepal coordinating the work. It proposes targeting investment readiness within approximately 18 months through parallel studies of land, water, transmission, Udayapur Cement, environmental and social impacts, technology and financing.
The note proposes allocating about NPR 500 million for initial project development, not construction. It also recommends seeking further support from development finance institutions, climate funds, bilateral partners, export credit agencies and technology providers. The proposed 18-month period is a target for investment readiness, not a guarantee that every engineering or financing step would be completed within that time.
Dhungana’s written position is that Nepal needs a national strategy linking renewable energy with industrial development, energy security and agricultural self-sufficiency. He recommends an urgent steering committee under the Prime Minister and calls for the government to temporarily pause the Belaka project’s Swiss Challenge process while the broader regional strategy is assessed.
“Dhungana emphasizes that Nepal’s challenge is not merely to attract investment in individual projects, but to establish a coherent national strategy that transforms its renewable energy resources into long-term industrial development, energy security, agricultural self-sufficiency and economic prosperity. The proposed green urea initiative offers a unique opportunity to establish an integrated green industrial ecosystem in the Koshi region, encompassing green hydrogen, ammonia, fertilizer, steel and other energy-intensive industries. At its envisioned scale, an electrolyser system supported by approximately 2,000 MW of renewable power capacity could place Nepal among the significant international players in green hydrogen and ammonia production, subject to technical and commercial feasibility. More importantly, this initiative would provide Nepal with an opportunity to enter the emerging global hydrogen and ammonia economy by establishing the necessary legislation, regulatory frameworks, specialized government departments, technical standards and institutional expertise. Dhungana therefore urges the government to establish an urgent steering committee under the Prime Minister’s leadership to coordinate national energy and industrial planning, safeguard strategic land and infrastructure, independently evaluate the technical and economic feasibility of competing proposals, and recognize project development work already undertaken. He specifically recommends temporarily suspending further advancement of the proposed Belaka solar project’s Swiss Challenge process until its implications for the broader regional industrial strategy have been properly assessed. The objective is not to oppose solar investment, but to ensure that individual projects complement rather than compromise Nepal’s larger national interests. Without such coordinated planning, Nepal risks losing a historic opportunity to develop a globally competitive green industrial economy, replacing long-term national vision with fragmented, short-term investments whose cumulative consequences may prove difficult to reverse.”
