SN Power, which has already undertaken some phases of the project, said that it would produce power by accomplishing the project by the beginning of 2017.

If the two hydro projects of Tamakoshi-3 and Upper Tamakoshi are completed in time, the country will be freed from the perennial problem of load-shedding at least during rainy season.

The country is reeling under the power cuts for 2 hours a day even during monsoon season.

The 456 MW Upper Tamakoshi is estimated to complete by 2015. The construction of Tamakoshi-3 will commence in 2012 and it will produce the said magnitude of power in four phases.

Both the two projects are being developed through the waters of Tamakoshi river.

As per the latest report prepared by Nepal Electricity Authority (NEA), the demands of electricity across the country will surge to 1800 MW by 2017/18.

The current volume of supply of the electricity in the country stands at 698 MW.

Courtesy : Nepalnews

Of them, Muktishree Energy Pvt Ltd has applied for 667 MW Bheri-4 in Salyan while Water Creation Pvt. Ltd has sought license for 420 MW Humla Karnali Hydroelectric Project located in Simikot district. Likewise, Navyug Urja Pvt Ltd is vying for Dudhkoshi Hydroelectric Project (105 MW) located in Solukhumbu district.

There was only one application submitted for the survey licenses for the hydro project with capacity between 25 MW to 100 MW. Chandan Holding Pvt Ltd has applied for Bharbun Khola Hydroelectric Project (30 MW) that is situated in Dolpa district.

The DoED statistics show more applications have been received for the smaller hydro projects. There were five applications for hydro projects with capacity between 1 MW to 25 MW. The hydro projects that have attracted interest of private developers are Hewa-Sewa Khola Hydroelectric Project (3 MW) in Sankhuwasabha, Kinja Marbu Hydroelectric Project (4.6 MW) in Solukhumbu, Middle Balephi Hydroelectric Project (7.5 MW) in Sindupalchowk and Upper Bharbun (20 MW) in Dolpa, Phakphok Khola (2.2 MW) in Illam.

With Nepali private sectors showing capability to develop and run small and micro hydel projects, it is no surprise that DoED received more applications for hydel projects below 1 MW. The same was evident from the DoED’s data which show it got eight applications for below 1MW projects. The rush to gett licenses for hydel projects started after Jana Andolan 2. The then government had initiated the process of granting licenses to private players, including foreign pnes. Private players mainly from India showed interest in acquiring hydel projects in Nepal.

The DoED had received eight applications for hydro projects over 100 MW in 2009-10. Also, there were 17 applications to the DoED for hydro projects between 25 MW to 100 MW.

The DoED’s statistics show there was rush for acquiring small hydro projects in the last fiscal year also. DoED received 374 applications for hydro projects below 25 MW that year. Of them, 157 applications were for hydro projects of 1-25 MW and 217 applications for projects below 1 MW.

Leading Indian players like Reliance, Tata Power, GMR Group, Jindal, Sutlej Jal Vidyut Nigam, Larsen & Toubro, KSK Energy, Bhilwara Energy Ltd and JSW Energy applied for the license of various hydro projects. Most of them applied for large power projects. Of them, Sutlej Jal Vidyut Nigam of India got the license for constructing 402 MW Arun 3 while GMR Group of India received license for 300 MW Upper Karnali.

Courtesy : Ekantipur

They also accused the government of being totally indifferent towards addressing the paralysing problem of load-shedding being faced by industries located across the Sunsari-Morang Industrial corridor

Industrialists in the corridor are suffering from 48 hours of power cuts every week.

Nepal Electricity Authority (NEA) has been providing 90 MW of electricity to 550 industries in the corridor against the daily demand for 135 MW. NEA cannot supply power as per the demand as it has no big power house in the eastern region.

The NEA is supplying 65 MW imported from India via Kataiya, 15 MW from national grid and 10 MW from multi-fuel plant of Bansbari to the corridor.

The power supplied via Kataiyam is, however, very aberrant.

Moti Lal Dugad, first vice president, Chamber of Industries Morang (CIM), bemoaned that the inability of the country itself has restricted the country from harnessing its immense potentials.

Shyam Poudel, executive member of CIM, said plastic, textile and steel industries situated across the corridor are bound to face a loss of Rs 2,200, Rs 13,000, 17,000 respectively if and when the power is interrupted for just once.

Kishor Pradhan, executive member, FNCCI, claimed the private sector is willing to invest in alternative energy in order to develop SEZ (Special Economic Zone) in Morang.

Courtesy : Nepalnews

“It is almost sure that load shedding hours will go up to at least of 16 hours as the demand for energy increases by about 80 MW each year; and the government has the policy of adding around two lakh households each year to the main grid line,” said Diwakar Paudel, Deputy Managing Director, Finance, Nepal Electricity Authority (NEA).

In 2009 the annual peak hour demand was recorded 885.28 MW which is 8.96 per cent higher than the 2008 demand of 812.5 MW. NEA cut down the 16-hour load shedding to 12 hours last year, buying 60 MW electricity from India. “There are slim chances that we will be able to increase electricity import from India this year. In the last one year we received only around 20 MW in the national grid from domestic production,” said Shankar Prasad Koirala, Secretary, Ministry of Energy. “But the demand may increase by at least 80 MW this year, causing load shedding hours to go up.”

Besides, no project is likely to add electricity to the national grid in the coming months, and there has not been any discussion on installation of thermal power plants, which are said to be one option to overcome the problems facing the nation.

At present, 697 MW is generated. This includes diesel power plants in Hetauda and Duhabi (53 MW). In 2009, NEA reached power purchase agreements with 27 power developers for a capacity of 137.22 MW. “Electricity is not a short-term business. It takes long time to reach power production phase so there should be some alternative way to tackle the problem as power production rate is far less than the demand,” maintained Koirala.

Courtesy : The Himalayan Times

The reservoir-based West Seti, whose 195 m high dam affects four out of the nine districts in the far west, will also impact the Tharu-dominated Kailali district as well. Besides, issues of en-mass resettlement, downstream benefits and percentage of free energy have been major challenges in executing this project. Promoted by an Australian company, Snowy Mountains Engineering Corporation, through West Seti Hydro, the US$ 1.6 billion West Seti becomes a debatable issue especially during the increased load-shedding hours in Nepal. Also, along with frequent changes in governments, issues related to the WSHP also take twists and turns.

Renewed hope

The government-ventured China National Machinery and Equipment Import and Export (CMEC) on December 28 signed a Memorandum of Understanding (MoU) with West Seti Hydro, expressing interest to invest 51 per cent in the WSHP. Out of the US$ 400 million share investment in the project based on the previous share composition, CMEC’s investment amounts to US$ 2004 million. Furthermore, Chinese banks are providing US$ 1200 million in loans to execute the project. For the project which was unable to make any financial closure to obtain the generation license, such commitment from Chinese investors is noteworthy considering the extra hours of power cuts in Nepal.

In addition to this, the Asian Development Bank (ADB) last month assured its readiness to invest in the WSHP. Minister for Energy Dr. Prakash Sharan Mahat discussed this issue with the bank’s vice president during his official visit to Nepal. Besides providing assurances for mega projects like the West Seti, the ADB also vowed to support Nepal with other infrastructural development projects, including highways.

Energy experts have seen these developments as milestones for installing mega power projects in Nepal. However, the reluctance shown by the ADB since the last three years in making a 15 per cent share investment in the West Seti is a serious matter in trusting such forged assurances.

Doubtlessly, exploitation of rivers for generating hydroelectricity from mega projects is challenging. Such executions require not only a huge budget but also an investment-friendly environment, support from the local communities and guarantee of public benefits. The development tools applied decades back are no more instrumental when issues of en-mass resettlement, international standard compensation packages and environmental impacts receive major concerns from the investors, affected locals or stakeholders.

With the primary ground works being undertaken for the Arun-III, Upper Karnali, West Seti and Upper Tamakoshi, we Nepalese are busy building castles in the air that we are definitely going to exploit thousands of megawatts of hydropower. Such feelings are deep-rooted among the locals in the FWDR that is eyeing multipurpose mega projects like the Pancheswor and Karnali, besides the West Seti and Chameliya. If we acknowledge our financial status sincerely, such multipurpose projects are nothing except mere dreams. But, starting the West Seti in the far west means preparing for the Pancheswor and Karnali.

According to the Environment Impact Assessment report of the Pancheswor Multipurpose Project, the revenue the government receives from the project in five years will suffice to meet the construction budget of the 10,000 MW Karnali Multipurpose Project. This is how we can materialise dreams of hydropower development.

People’s project

We have developed an unhealthy culture of judging things based on the statements of the political parties and their cadres. When they say ‘yes’, we don’t look for the option to say ‘no’ since we are more used to their hearsays, which are never persistent. It is an undeniable fact that mega projects are not free of concerns and controversies. However, it is a duty of a responsible citizen to make such mega schemes people-oriented, benefiting both the people and investors.

The World Bank, which abandoned Arun-III in 1995, is presently lamenting over acquiring similar projects in the Nepali hydropower sector, and our government is preparing to offer it the 350 MW Upper Arun. We did not act responsibly when we had to bid farewell to the 402 Arun-III 15 years ago. Still, we are convinced by some political forces that Arun-III, West Seti and Upper Karnali are being conceptualised against the sentiments of the affected locals, and that they are anti-national projects.

For the sake of intensifying feelings of nationalism, leaders of the United CPN-Maoist, who well accepted these projects for immediate construction when they were in power, are now trumpeting that the West Seti is an anti-national project. This hearsay is certain to take a positive lead as soon as they seize power.

Thus, responsible citizens must rise above such illusions, make a well-judged decision and help execute such power projects for creating a congenial environment for investors. Otherwise, we must clearly say ‘No’ to development and will be repeating the fate of Arun-III in West Seti, compelling all souls awaiting development in the FWDR to lament forever.

Note:
This article was published in The Rising Nepal on the same day when West Seti management decided to lay off its more than two-third of working staffs.

Dr Raghu Nath Jha, a lecturer of water resource engineering, and his team was rigorously involved in the research. “Estimate depends on the type of model used. The study we conducted is based on a widely accepted methodology used in scientific water resource research, “claimed Shakya.

In late 1960s, water resources expert Dr Hari Man Shrestha conducted an academic research for doctorate in Russia, which revealed that theoretically Nepal could generate 83,000 megawatts hydropower, of which 42,000 megawatts was economically and technically viable.

“Hari Man Shrestha’s estimate was made at a time when very little river water discharge data was generated by few measuring stations. But the number of stations providing the data has increased, making our study more reliable,” added Shakya.

“Shrestha used average runoff water, which includes the flood water also, to come up with his estimate. But we have excluded the flood water,” said Shakya.
Ironically, Shrestha’s document is not available in any library. Nor is it with the Ministry of Energy that officially cites 83,000 megawatts as the hydropower potential of the nation.

“His document is not available here. We believed him when he said Nepal’s theoretical potential to generate hydropower is 83,000 megawatts,”said Kishore Thapa, Secretary, Water and Energy Commission Secretariat.
So far Nepal has generated only 0.7 per cent of Shrestha’s estimated 42,000 megawatts viable hydropower.

“We haven’t generated even one per cent of the estimated potential. First we should generate a few thousand megawatts then talk about our potential,” added Thapa

Ekantipur

“We do not just point out problems but also provide solutions to the government,” said Ashok Murarka, director of Murarka Organisation. “If the government provides the loan for 20 years and offers the land of Biratnagar Jute Mills, we will produce 50 MW of electricity within two years.”

The industrialists said that the government has been buying electricity from the India paying Rs. 7.30 per unit.

They said that the same money used for importing the electricity from India could be used to generate electricity by setting up the thermal plant. It costs an estimated Rs. 3 billion for establishing the plant.

Currently, the government has been importing 15 MW each from Kattaiya Power House and Muzzafarpur, India.

Provision of interest free loan for 20 years, duty fee concession on import of coal, thermal plant machine and spare parts and distribution of produced electricity through Nepal Electricity Authority’s transmission line to industries are some of the pre-conditions put forward by the industrialists for building the plant.

According to industrialists, the government should invest 75 percent of the total investment and industrialists will invest 25 percent in the plant which can be operated as a cooperative.

The Kathmandu Post

Nepal Electricity Authority (NEA) had formed a committee headed by its board member Lekhman Singh Bhandary a month ago to assess the financial and technical capability of the five proposing companies. The committee is preparing financial and technical indicators to analyse these proposals.

“We are preparing criteria to select a company for the project,” said Bhandary.

The NEA’s next board meeting will endorse the criteria set by the committee. Bhandary said that 15 days after the endorsement of the criteria, the company that offers the project’s maximum shares to the NEA will be awarded the project.

The government had included Budhi Gandaki along with Upper Karnali (300 MW) and Arun III (402 MW) hydropower projects for international bidding three years ago. Two Chinese companies had submitted proposals to commission the project then.

“However, the Chinese companies failed to meet the criteria set by the former Finance Secretary Bhanu Prasad Acharya-led committee to commission the project,” said Bhandary. Offer of maximum shares to the NEA will be a major criterion for the selection of the company, added Bhandary.  Although internationally acclaimed company Electricity De France (EDF) had proposed public-private partnership (PPP) model for the project two years ago, the government took no decision then. Four other Indian companies had also submitted proposals for the project.

The 1983 pre-feasibility study estimated that this reservoir-type project could be commissioned at a cost of US $ 800 million.

The Kathmandu Post

जिल्लाको मध्य क्षेत्रमा पर्ने हगाम गाविसको गेलुङखोलाबाट गेलुङखोला हाइड्रोपावर कम्पनी लिमिटेडले ३ हजार ३ सय ५० किलोवाट क्षमताको विद्युत् आयोजनाको निर्माणकार्य शुरू गरेको हो।

बरम्ची गाविसको ढाँडेदेखि हगामको पाटीचौरसम्मको १९ किलोमिटर प्रवेश मार्गको निर्माण कार्य २ करोड रुपियाँ लागतमा शुरू भइसकेको कार्यकारी निर्देशक पूर्णबहादुर श्रेष्ठले जानकारी दिनुभयो।

अरनिको राजमार्गको बलेफीदेखि ढाँडेसम्म दैनिक यात्रुबस सञ्चालन भइरहेकाले प्रवेश मार्ग निर्माण गर्न थप लगानी गर्नुनपर्ने हुँदा आयोजनाबाट उत्पादित विद्युत् सस्तो पर्ने बताइएको छ। प्रवेशमार्गको निर्माणकार्य २ महिनाभित्र सम्पन्न गर्ने लक्ष्य लिएको छ।

र्सार्वजनिक सुनुवाइसमेत भइसकेको सो आयोजनाको कुल लगानी ४६ करोड रुपियाँ लाग्ने अध्ययनले देखाएको छ। आयोजनाले स्वदेशी बैंकसँग ऋण लिने प्रक्रिया अघि बढाएको छ।

आयोजनाबाट जिल्लाबासीलाई ४० प्रतिशत शेयर वितरण गर्नुका साथै कामदारलाई अनिवार्य रूपमा १ सय कित्ता शेयर लिनुपर्ने व्यवस्था गर्न लागेको श्रेष्ठले बताउनुभयो।

आयोजनास्थलदेखि लामोसाँगुसम्मको १९ किलोमिटर प्रसारण लाइन निर्माण गर्नुपर्ने र सोका लागि बरम्चीस्थित युनिक हाइड्रोपावर कम्पनीसँग संयुक्त रूपमा निर्माण गरिने भएको छ।

बरम्ची साना जलविद्युत् आयोजनमा भइरहेको ९ सय ८० किलोवाटलाई ४ दशमलव ३ मेगावाट स्तरोन्नतिको काम धमाधम भइरहेको छ। जिल्लामा यो समेत कुल ७ वटा आयोजनाबाट विद्युत् उत्पादनको काम भइरहेको छ। जसबाट कुल ८८ मेगावाट विद्युत् उत्पादन हुने अनुमान गरिएको छ।

Nepal Samacharpatra

During a meeting held between Energy Minister Prakash Sharan Mahat and Isabel Guerreo, World Bank Vice President for South Asian Region, on Sunday, the ministry put forward the proposal for investment in Upper Arun project.

In September 2009, the WB had asked the government to come up with potential hydropower projects that could help minimise power crisis in the country, expressing willingness to invest in the potential projects.

“I have proposed Upper Arun to WB for investment after consulting with other concerned experts,” said Mahat. “We will hold detailed discussion on the proposal next week.”

Meanwhile, a press statement issued by the Ministry of Energy after the meeting, said the WB has shown commitment for investment on big hydropower projects in the country to address the existing power outage.  Minister Mahat said the total power generated from Upper Arun will be utilised in the country. “The government will also invest certain amount for this project,” he said.

The estimated cost of the Upper Arun project located some 10 kilometres away from Nepal-China border in Sankhuwasabha district is around US $480 million, according to a study carried out in 1990. The first feasibility study of the project was conducted in 1987, while the detailed project study completed in 1991.

The Kathmandu Post