29 hydropower projects apply for construction licence
KATHMANDU, MAY 28 -
As many as 29 hydropower projects, with a combined capacity of 2,463 MW, have applied for construction licence at the Department of Electricity Department as of the 10th month of this fiscal year, statistics show.
During the same period last year, only eight companies had applied for the licence. “The surge in the number of applicants suggests that the ongoing power crisis will come to an end sooner or later,” said Dilli Bahadur Singh, director general at the department. Hydropower companies apply for construction licence after they complete their financial closure, environmental impact assessment and power purchase agreement. Projects go into the construction phase after acquiring the licence.
A majority of the projects are smaller ones. Of the 29 projects, only six are above 100 MW. Among the big hydropower projects are Tamakoshi III (650 MW), Upper Marshyangdi (600 MW), Upper Trishuli I (216 MW), Kaligandaki Gorge Project (160 MW) and Upper Tamor (415 MW).
Tamakoshi III is being developed by SN Power and Upper Marshyandi by India’s GMR. The projects are currently waiting for power development agreement (PDA) negotiation. The negotiation for Tamakoshi III has been stalled for almost three years. The government on Saturday handed these two projects to the Investment Board to expedite their PDA negotiations.
According to the department, seven of the applicant projects have capacities between 10 MW and 100 MW. They include Nyasim Khola (21MW), Likhu II (55MW), Likhu I (77MW), Khani Khola (30 MW) and Lower Hewa project (10 MW).
Gyanendra Lal Pradhan, chairman of the Energy Council at the Federation of Nepalese Chambers of Commerce and Industry, said the growing number of licence applicants was a positive sign. He, however, cautioned that some of the developers were not in a position to start construction because of low PPA rate. “They are only coming to the construction phase to protect their project development licence,” he said.
Source: The Kathmandu Post
