Harnessing the Flow, Navigating the Impact: Hydropower, Society, and Environmental Justice in Nepal

Abstract

Hydropower has emerged as the foundation stone of Nepal's national energy strategy, operated by a global push for renewable energy and the vast hydropower capacity of the country. However, while hydroelectric is promoted as a permanent solution for the challenges of energy and development, it is often the result of adverse social and cultural consequences for local and indigenous communities. This research critically evaluates the effects of two big dams—Upper Karnali and Arun-3—through a mixed-methods design that combines survey answers of 85 affected households and 25 stakeholder interviews with NGOs(Non-Government organisation ), developers, and policymakers. Quantitative analysis indicated that 47.1% of the respondents have "other" sources of income, and most mentioned negative (41.2%) or neutral (44.1%) overall effects after displacement. ANOVA( Analysis of Variance ) tests (F = 0.275, p = .892) revealed no significant difference in total effect based on source of income, whereas Chi-square analysis (χ² = 15.495, df = 6, p = .017) indicated a significant relationship between sense of belonging and desire to stay at original location. Thematic and discourse qualitative analysis pointed out universal discontent with pay, restricted procedural participation, and lack of recognition for lost culture. Word cloud and sentiment network visualisations illustrated a stark dichotomy between institutional discourses—driven by regulation, development, and compliance—and community discourses centred on loss, resistance, and justice. Based on the findings, the research concludes that existing hydropower governance in Nepal is not procedurally, distributive, or cognitively just and urges a transition toward inclusive, participatory, and culturally sensitive development approaches that are consistent with the tenets of environmental justice and sustainable transition.