Together we have more power: Status, challenges, and the potential for regional renewable energy cooperation in the Hindu Kush Himalaya

Summary

Despite notable progress in economic growth and development in the eight Hindu Kush Himalayan (HKH) countries, 260 million people still experience extreme monetary poverty, and 591 million are facing multidimensional poverty. More than 47 million people in these countries do not have access to electricity. With rising populations and economies, energy demand is surging. At the same time, countries are aiming to transition to low emission development pathways. This means that HKH countries need to expand their renewable energy portfolios to meet the growing demand of the population and economies whilst achieving low emissions. Currently, in China and India, the contribution of the energy sector to total national greenhouse gas (GHG) emissions is 88% and 72% respectively. The expansion of the share of clean renewable energy (generated from hydro, solar and wind sources) in total energy supplies will help significantly reduce GHG emissions, particularly in these two countries and in general in all HKH countries. The transition from fossil fuels to clean renewable energy requires concrete efforts at national and regional levels in the face of worsening macro challenges such as climate change and air pollution. However, most of the existing arrangements for cooperation in the region are bilateral; such arrangements need to evolve into regional collaborations to optimise energy benefits and achieve the sustainable development goals (SDGs). This report examines existing energy sources, the share of renewable sources in the overall energy mix, analyses the climatic and non-climatic risks to the energy sector, and explores the potential for regional cooperation for renewable energy in the HKH. The report is mainly based on a review of available data, peer-reviewed publications, reliable reports, and policy documents.

Key Findings

• Current economic [i.e., gross domestic product (GDP) growth rate, account deficits, unemployment rate, and inflation] and socioeconomic indicators (i.e., food insecurity, poverty and gender inequality) of HKH countries reveal significant potential for the productive and efficient use of renewable energy to boost economic growth and reduce socioeconomic inequalities and disparities.
• Among the HKH countries, Bhutan, Myanmar, Nepal, and Pakistan heavily depend on biofuels and waste (including agricultural residues, and industrial and municipal waste from a range of sources) with, respective shares of 25.1%, 51.2%, 66.7%, and 26.8% in total primary energy supply (TPES). In China and India, primary coal and peat are the major contributors to TPES. However, In Bangladesh, natural gas is the major energy source in TPES.
• In the HKH countries, the share of clean renewable energy (CRE) sources (hydro, wind, and solar) in TPES is only 6.1%. Bhutan has the highest share (37.8%) of CRE sources in TPES. China and Nepal have respective CRE shares of 7.1% and 6.8% in TPES. All other HKH countries have very small shares (0.3–3.7%) of CRE in TPES.
• The HKH countries generate only 28% of their electricity from RE sources. Bhutan and Nepal generate 100% of their electricity from renewable sources. Five HKH countries – Bangladesh, China, India, Myanmar and Pakistan – generate electricity mainly using fossil fuels with respective shares of 99%, 70%, 80%, 51%, and 76% in total electricity generated in these countries.
• The HKH countries have viable potential for around 882 GW through hydropower, and currently, only 49% of this has been tapped. As of 2023, Afghanistan, Bhutan and Nepal had developed only 2%, 10%, and 6% of their hydropower potential, respectively. Myanmar and Pakistan utilised 8% and 18% of their total hydropower potential. Of the total viable hydropower potential in the HKH countries, around 635 GW is estimated for the HKH area (hills and mountains) of these countries. The potential for solar and wind power production in the HKH areas of these countries is nearly 3,000 GW. The HKH part of China has the highest potential for power production from solar (1772 GW) and wind (741 GW) sources. The HKH part of India also has the potential for 224 GW through solar power. The HKH parts of Afghanistan, Pakistan, and Nepal have respectively the potential of 80 GW, 56 GW and 24 GW to produce solar power.
• In Bhutan and China, 100% of the population has access to electricity. Access is lowest in Myanmar (72%). In other countries, approximately 90–99% of the population has access to electricity.
• In the HKH countries, the household sector is the main consumer of energy, except in China and India, where industry is the major consumer of energy – indicating the priorities of these two countries for value-added products and economic growth. Overall, in all HKH countries, there is a huge scope to enhance the productive consumption of energy in industries and agriculture. All HKH countries, except Bhutan, are net importers of energy with major imports of non-renewables.
• In the HKH, climate change is significantly impacting the energy sector, particularly hydropower production, through increased water variability, extreme weather events, and infrastructure damage. Hydropower generation faces challenges from changing hydrologic regimes, with variations in streamflow and seasonal shifts affecting output. Glacial lake outburst floods (GLOFs) and other extreme hydrological events pose major risks to existing and planned hydropower projects.
• The HKH countries also face severe non-climatic risks that threaten their energy sector, including economic, social, technical, environmental, and political challenges. High capital costs, low returns on investment, and limited financial resources hinder energy infrastructure development. Social risks such as lack of access to energy, social dislocation, and ecological degradation impact local communities, while technical challenges stem from insufficient technology and dependence on fossil fuels. Geopolitical conflicts and environmental threats like earthquakes and floods further complicate the situation.
• Despite several challenges to the energy sector in the HKH, there is high potential for multiple benefits through regional cooperation, particularly in developing integrated approaches for water, energy and agriculture, disaster risk reduction (energy relevant), energy trade, technology sharing, and collective efforts to meet global commitments [i.e. SDGs, and nationally determined contributions (NDCs) etc.].

Policy Messages

• The HKH countries need to increase the share of RE in their national energy mix to reduce GHG emissions, improve energy security, reduce their dependence on fossil fuel imports and mitigate the vulnerability of their economies to global market shocks. Currently, HKH countries, including Bangladesh, India, and Pakistan are heavily dependent on fossil fuel imports. Any changes or shocks in global energy markets are likely to impact energy prices and the national economies of these countries.
• There is an urgent need for regional cooperation to expand the CRE portfolio in total energy supplies in the HKH countries. Most of the existing arrangements for cooperation in the region are bilateral and need to evolve into regional collaborations involving more than two countries, to optimise energy benefits for countries.
• The energy sector is very complex and cross cutting and needs a holistic/multidimensional approach for regional cooperation to cope with the challenges and increase the mutual benefits for countries. For effective regional cooperation in the HKH energy sector, a holistic approach is needed beyond just hydropower trade. This includes developing resilient hydropower projects, sharing knowledge and technology for all renewables, promoting regional energy trade, and integrating disaster risk reduction and green growth strategies. Cooperation should address economic, social, technical, and environmental challenges, ensuring sustainable development, reduced emissions, and enhanced energy security, while meeting global commitments and supporting local communities.

Suggested Citation

ICIMOD. (2025). Together we have more power: Status, challenges, and the potential for regional renewable energy cooperation in the Hindu Kush Himalaya. ICIMOD. https://doi.org/10.53055/ICIMOD.1090