Hydropower sector attracting investors
BIRATNAGAR, JAN 27 -
Biratnagar has one of the largest industrial corridors of the country consuming a fairly large amount of electricity. But the Sunsari-Morang Industrial corridor and the entire eastern region has been forced to depend on power imported from India.
The eastern region demands 150MW of electricity. But the Nepal Electricity Authority (NEA) imports 80-85MW electricity from India, while the rest is fulfilled by energy produced by captive power plants. Because the 12-hour load-shedding a day, industries have been forced to produce power through generators, which costs Rs 35 per unit compared to Rs 8 for electricity supplied by the NEA, contributing to a rise in their cost of production.
“It is unfortunate that electricity is so expensive in a country where water resources are in abundance,” said Rajendra Raut, vice-president of Purbanchal Chamber of Commerce and Industry.
As entire region is dependent on imported power, it is extremely vulnerable when demand increase in India. “When the demand rises in India, the supply decreases to 40-50MW,” said Anupam Rathi, member of Morang Merchant Association.
Moreover, the transmission line from India’s Katauwa to Nepal has not been repaired, resulting in leakages. As capacity of this transmission line is low, Nepal cannot import more than 80-85MW power. It has been predicted that factories here have to rely on imported power at least until next five years. “As our hydropower projects are under construction, the government must make arrangements for importing at least 120MW electricity from India for the eastern region,” said Abinas Bohora, President of Morang Merchant Association. “It is the best alternative at the moment.”
Hydropower projects based in the eastern region are producing just 10-15MW. Rathi, however, said the figure will go up to 60MW in the next two years. He said around 5,000MW electricity can be produced from the eastern region alone. “Despite such a huge potential, we have been forced to beg for just 100MW,” lamented Rathi.
Rathi, whose business group has invested in 82MW Lower Solu Project, said: “The delay in signing Power Purchase Agreement with the Nepal Electricity Authority will make it difficult for us to complete the project within the estimated four years.”
There are also a few smaller projects. For example, Khoranga Hydropower Limited produces 9.95KW from Themekhola Small Hydropower Project. Fidim Electricity Consumer Cooperative is producing 260KW, while Baneshwor Hydro generates 900KW from Hewa Khola and Nigure Power House 250KW.
Other bigger projects include Puwakhola Project (6.2MW), Arun Valley Hydropower Project (3MW) and Barun Hydro (4.5MW). There are also various projects in Ilam which have combined capacity of 60MW. The NEA has been producing 6.4MW from Puwakhola, while Sanamali Khola Project has been producing 4.5MW.
New investments are also being made in the hydropower sector. Sanima Hydropower is constructing two projects (29MW combined) in southern Danabari and Chisapani in Ilam which are expected to be completed by the next year.
The tunnel digging work on 10MW Upper Mai Hydropower Project, developed by Mai Valley Hydropower Private Limited, has completed. “We have completed 50 percent work,” said Project Chief Santosh Pradhan.
Source: The Kathmandu Post
