Govt gives priority to storage-type hydro projects

Fri, Sep 2, 2011 12:00 AM on Others, Others,
KATHMANDU, SEP 02 -
The government has accorded priority to building storage-type hydropower projects in a bid to provide a long-term solution to the ongoing power crisis. As part of this strategy, it has started a study of around 11 storage-type projects across the country.

Of the 16 hydropower projects listed for different levels of study including detailed feasibility study and detailed project report (DPR) for this fiscal year, 10 are storage-type projects with a capacity more than 2,000 MW.

Though belated, the government has allocated around Rs 860 million for conducting initial level studies and DPR of 16 hydropower projects along with the preparation of a master plan for storage-type hydropower projects for the fiscal year 2011-12.

The Kulekhani Hydro Electricity Project (60 MW) is the only reservoir-type hydel project in the country.

Balananda Poudel, energy secretary at the Ministry of Energy (MoE), said the government was positive about developing storage-type projects to ease the acute power crisis being faced by the country particularly during the dry season.

Despite the interest in developing small, medium and large hydropower projects, the government, local developers and donors have been reluctant to invest in storage-type projects as they require huge investment and have a high vulnerability rate during and after the construction phase.

Meanwhile, the government has allocated Rs 2.5 million to prepare a master plan of storage projects in the country. Among the major storage hydropower projects are Budhi Gandaki (600 MW), Uttarganga (300 MW), Dudh Koshi (300 MW), Nausyalgad (400 MW), Tamor (380 MW) and Indrawati (7.5 MW), among others.

The country currently has an installed capacity of 697 MW all of which, except for the Kulekhani, is produced by non-storage, run-of-the-river projects. The country’s total power demand has reached around 967 MW, while there is a winter deficit of 520 MW. There is a shortage of 250 MW even during the monsoon season.

According to Anup Kumar Upadhyay, Budhi Gandaki and Nausyalgad had been included in the government’s priority list in earlier budget programmes. Though a feasibility study for the Budhi Gandaki project located in Dhading district was completed in 1984 and it was opened for international bidding in 2007, there was little interest from both national and international developers.

“However, a study has already been started to develop this project with the necessary funds to be mobilized by the government itself if there is no interest from donor agencies,” he added.

Subarna Shrestha, president of the Independent Power Producers Association Nepal, said that there was an urgent need to invest in storage-type projects to provide a long-term solution to the power crisis prevailing in the country.

“However, in the present context, there is less possibility of investment in storage-type projects by private hydropower developers due to the high cost. The government should take the lead to develop such projects, which will be later supported by the private sector,” said Shrestha.

List of Projects to be studied

Project >> Budget Allocated

Budhigandaki >> 240 million

Uttarganga Storage Project >> 20 million

Bagmati Storage Project >> 5 million

Dudhkoshi Storage Project >> 10 million

Andhi Khola Storage Project>> 2 million

Nalsyaugad Storage Project >> 20 million

Tamor Storage Project >> 20 million

Kaligandaki Storage Project >> 5 million

Indrawati Storage Project >> 1 million

Nisti Pana Storage Project >> 10 million

Gaudi Khola Khadgakot >> 2 million

Storage Project

Upper Arun Hydropower Project >> 40 million

Lower Tamakoshi >> 20 million

Bagmati Kulekhani Pharping >> 2.5 million

Mathillo Seti >> 400 million

Mathillo Modi >> 60 million

Master Plan Preparation of Storage Project >> 2.5 million

Source: NEA