24th November 2024, Kathmandu
Three hydropower projects in Rasuwa, spearheaded by Chilime Hydropower Company, a subsidiary of the Nepal Electricity Authority (NEA), have been completed, adding 168 MW of electricity to Nepal’s national transmission system.
Nepal’s Energy Future Brightens
Electricity generated by these projects has been integrated into the national grid through the NEA’s 220/132/33 kV substation at Thambuchet, located in Aamachodingmo Rural Municipality, Rasuwa. The completed projects include:
- Upper Sanjen Hydropower Project (14.8 MW)
- Sanjen Hydropower Project (42.5 MW)
- Rasuwagadhi Hydropower Project (111 MW)
Current Status of the Projects
- Upper Sanjen Hydropower Project:
- Completed in October 2023, the project has been generating electricity commercially.
- To date, it has sold electricity worth NPR 300 million.
- Sanjen Hydropower Project:
- Recently completed, it started test production on Friday and has been connected to the national grid.
- Rasuwagadhi Hydropower Project:
- Currently in the test production phase.
- Upon successful testing and compliance with regulatory standards, commercial operation is expected to begin later this month.
Winter Production Capacity
All three projects are run-of-river hydropower plants. During the dry winter season, their combined output is expected to drop to approximately 80 MW due to reduced river flow.
Challenges Overcome
The completion of these projects marks a significant milestone despite facing numerous challenges, including:
- The devastating 2015 earthquake and subsequent aftershocks.
- Floods, landslides, and adverse geological conditions.
- Transportation and fuel supply disruptions during the Madhesh Movement.
- The COVID-19 pandemic and post-pandemic border closures with China delayed equipment imports.
Cost and Investment
The construction costs of the Upper Sanjen and Sanjen projects, excluding interest during construction, were initially estimated at NPR 7.35 billion. However, due to prolonged construction timelines, rising interest rates, administrative expenses, and inflation, the costs are now estimated at NPR 9.2 billion. This translates to an average price of NPR 225 million per megawatt.
The projects were primarily financed through Employees Provident Fund (EPF) loans.
Ownership Structure
- 39.36% by Chilime Hydropower Company.
- 10.36% by the Nepal Electricity Authority.
- 1.28% by local government bodies in Rasuwa.
- 49% of public shares held by:
- Employees of the NEA, Chilime Hydropower, and Rasuwa local governments.
- Residents of project-affected areas in Rasuwa.
- General public investors.
Annual Production and Contribution
The Upper Sanjen and Sanjen projects are expected to produce 1.8 billion units of electricity annually. To enhance efficiency, a picking pond has been constructed for Upper Sanjen to store water during off-peak hours. This allows the plant to operate at full capacity for 70 minutes during peak demand in the evening, addressing the increased electricity demand during winter evenings.
A Step Towards Energy Independence
Kulman Ghising, NEA’s Executive Director, emphasized the strategic significance of these projects:
“Completing these projects despite the challenges is a major achievement. Their proximity to Kathmandu will help balance and stabilize the power supply during winter when demand peaks.”
The completion of these projects marks a significant step towards meeting Nepal’s growing energy needs and reducing dependency on imported energy sources.
For more: Nepal’s Energy Future Brightens
