Status of Hydroelectricity in Nepal Potential and Challenges

STATUS OF HYDEL IN NEPAL: POTENTIAL AND CHALLENGES
1. INTRODUCTION
Hydro-electricity (hydel) is the most widely used form of renewable
electricity in the world. Hydel actually refers to the electricity
generated by hydropower. In other words, it is the electric power
generated by harnessing the power of moving water or gravitational
force of the falling water. Once a hydel project is completely
constructed, it will produce no more direct waste and has very less
output level of green house gas CO2 than other fossil fuel powered
plants. Moreover unlike other renewable energy resources like solar
and wind (intermittent energy sources), where sunlight and blowing
wind is not available everytime, hydel can ensure 24/7/365 supply of
energy as water always keeps on flowing. Therefore hydel is one of the
best renewable energy sources.
On the basis of different methods of generation, hydel projects may be

classified into following three types:
I. Conventional type(storage type)(STO)
It is the most traditional and common type. It uses dams on

river to store water in a reservoir. The potential energy of the
dammed water in reservoir is responsible for driving the
water turbine and generator attached to it, producing
electricity. It can be called as storage type as water is stored
in big reservoirs. The Kulekhani I & II are the only storage
type hydel projects of Nepal at present.
II. Pumped Storage type
These types are used for load balancing during peak demand
periods. To supply electricity during peak demands water is
moved between reservoirs at different elevations. At the time
of low electrical demand, the excess electricity generated is
used to pump water into higher reservoir. At times of higher
load demand, the stored water is released to lower reservoir
through a turbine. It therefore uses low-cost off- peak
electricity to generate electricity during periods of peak
demand (when electricity prices are highest) and helps in load
balancing. Pumped-storage types are the commercially most
important means of large scale grid energy storage and it
also improves the daily capacity factor of generating system.
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III. Run-of-the River type(ROR)
The ROR type depends on the natural flow of river. This type
consists of comparatively smaller reservoir making them
impossible to store water. Power stations of this type are built
on rivers with consistent and steady flow, either natural or
through the use of large reservoir at the head of river that
can provide a regulated steady flow for power stations
down-river.
Most of the hydel projects in Nepal are ROR type.
On the basis of size and the production capacities of the hydel

projects, they may be classified as follows:
I. Large hydel project
Although no official definition exists for the capacity range of

large hydel projects, their capacities may ranges from a few
hundred megawatts (MW) to 10 giga watts (GW). Only three
power plants generating over 10 GW are in operation in world
currently, namely: Three Gorges Dam(22.5GW), Itaipu
Dam(14GW), and Guri Dam(10.2GW).
II. Small hydel project
The definition for small hydel projects (plants) may vary

according to country but projects of generating capacity up to
10MW as higher limit may be termed as small hydel projects.
III. Micro hydel project
The term Micro hydro is used for hydro electric power

installations that produce power up to 100KW. These are
good sources of power for small communities around the
world and especially in developing countries like Nepal as
they are more economic and environment friendly.
IV. Pico hydel project
The hydel project under 5KW capacity is termed as Pico hydel

project. It is good for very remote and small communities
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that require only very small amount of electricity. This are

typically of ROR type, means no dams are used. Moreover,
pipes are used to divert some river flow towards the turbine.
2. HISTORY
The mechanical power of falling water is an age old tool. It was used
by the Greeks to turn water wheels for grinding wheat into flour, more
than 2,000 years ago. During the Middle Ages, large wooden
waterwheels were developed with a maximum power output of about
50 hp. Modern large-scale water-power owes its development to the
British civil engineer John Smeaton, who first built large water wheels
out of cast iron. The earliest hydroelectric plant was constructed in
1880 in Cragside, Northumberland, England. The early hydroelectric
plants were direct current stations built to power arc and incandescent
lighting during the period from about 1880 to 1895. The years 1895
through 1915 saw rapid changes occur in hydroelectric design and a
wide variety of plant styles built. Hydroelectric plant design became
fairly well standardized after World War I with most development in
the 1920's and 1930's being related to thermal plants and
transmission and distribution.
The history of electricity development of Nepal has crossed 100 years

since the start of construction of Pharping Hydroelectric Plant (500
KW) in 1911. Today, Nepal has an electric power of total installed
capacity 689 MW (in 2009) in Integrated Nepal Power System (INPS).
Out of total electric power, about 91 % is contributed from
hydroelectric plants and rest of 9 % is supported from diesel plants.
The existing largest hydroelectric plant in the country is Kaligandaki-A
(144 MW). The generated electric power has been transmitted through
132 KV single and double circuit transmission line of 1562.9km, 66 KV
single circuit, double circuit of 354.72km ( includes single core
underground transmission Teku-k3). The country has a total sub
station capacity of 1415.10 MVA to date.
In 1966, i.e. 44 years ago, Dr. Hari Man Shrestha assessed the total
hydropower potential in Nepal as 83,500 MW. He did so during the
research work for his Ph.D. Thesis (1966) from Moscow Power
Institute, USSR on Cadastre of potential water power resources of
less studied high mountainous regions, with special reference to
Nepal. Dr. Shrestha is known as the pioneer Hydropower Engineer of
Nepal. Since then, no further study has, so far, been done in this field.
And, that finding seems to have been accepted as full and final to
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date. Much water has flown down river Bagmati during these four
decades, and the world has seen sea changes in the fields of science
and technology. Moreover, the revolutionary changes in the fields of
computer and information technology has helped find new dimensions
in research and study approaches and many findings of the past have
been proved wrong in recent years. But, in Nepal, not much initiative
has been taken to carry out further investigations and research works
to justify the findings of Dr. Shrestha.
3. BACKGROUND
Nepal has a huge hydropower potential. In fact, the perennial nature
of Nepali rivers and the steep gradient of the country's topography
provide ideal conditions for the development of some of the world's
largest hydroelectric projects in Nepal. The average annual
precipitation is approximately 1700 mm (80% of which occurs during
the monsoon season - June to September). The total annual average
run-off from the nation's 600 perennial rivers is over 200 billion m3
Current estimates are that Nepal has approximately 40,000 MW of
economically feasible hydropower potential. However, the present
situation is that Nepal has developed only approximately 689 MW of
hydropower. Therefore, bulk of the economically feasible generation
has not been realized yet.
Although bestowed with tremendous hydropower resources, only about

40% of Nepal's population has access to electricity through the grid
and off grid system. Most of the power plants in Nepal are run-of-river
type with energy available in excess of the in-country demand during
the monsoon season and deficit during the dry season.
The electricity demand in Nepal is increasing by about 7-9%

(approximately 80 MW at least) per year. Nepal's Tenth Five Year Plan
(2002 2007) aims to extend the electrification within country and
export to India for mutual benefit. The new Hydropower Policy 2001
seeks to promote private sector investment in the sector of
hydropower development and aims to expand the electrification within
the country and export.
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The system loss is one of the major issues to be addressed to improve

the power system which accounts to be 25 % including technical and
non-technical losses like pilferage
4. OBJECTIVES
The general objectives of preparing this report on the topic:
STATUS OF HYDEL IN NEPAL: POTENTIAL AND CHALLENGES are
mentioned hereunder:
1. To know about the history of hydel in world and Nepal.

2. To know about the actual hydel capacity of Nepal and its current
status.
3. To know about the major hydel projects (also small and micro
hydel) under operation, under construction and feasible projects.
4. To know about legal policies for private sector participation on
different hydel projects.
5. To learn about basic technical aspects behind the hydel
generation.
6. To know about the major challenges behind the under
development of hydel in Nepal.
5. METHODOLGY
1. PRIMARY SOURCES OF DATA
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Office of Nepal Electricity Authority (NEA),

Department of Electricity Development (DOED) was
visited and various officials were interviewed to
collect necessary information and data.
Informal discussions regarding the topic with the
related officials also proved beneficial for the
project.
Telephone interviews were also made when
required with the officials of above mentioned
offices to access information.
2. SECONDARY SOURCES OF DATA
As secondary sources of data, newsletters, annual

reports, bulletins and brouchers related to the
topics were gathered.CBS documents were also
collected for more statistical data. Also websites of
related offices were visited for more information.
1. DATA ANALYSIS
The data and information obtained from primary sources and

secondary sources were thoroughly studied and analyzed
qualitatively and quantitatively by using appropriate statistical
tools. The analyzed data were interpreted using charts, tables,
figures, and texts.
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6. TECHNICAL ASPECTS OF HYDEL

As the primary objective of preparing this report is to deal with the
statistical data and their analysis, technical aspect of hydel
generation has been less prioritized. Basic knowledge about
technical aspects of hydel generation has been given here under:
The water required for hydel generation is received from the

catchment area which may be collected in big reservoirs (storage
type) or directly used (in ROR types).
The hydel extracted from water does not depends on the volume of
water only but also on difference of height between the source and
waters outflow. The height difference is called the Head. The
amount of potential energy in water is directly proportional to the
head.
The water is made to run from higher elevation to lower elevation

through a large tube called Penstock, technically.
When the water reaches the end of the penstock, it turns a water
wheel or "turbine" at enormous speeds. The turbine rotates, via a
connected shaft to an electrical generator, and this generator
creates electricity. It is the turbine and generator working in
combination that converts "mechanical energy" into "electric
energy
So basically the major components of a hydel projects can be listed

as:
1. An impounding structure such as a dam to store water for
creating head and for controlled utilization (for STO
type).Alternatively, a diversion structure or a weir or a
barrage for diverting the flow of water to water conductor
system (for ROR type).
2. An intake system containing thrash rack and gate to
control and regulate the flow into the water conductor
system.
3. A water conductor system containing and open channel
and/or a tunnel with a forebay tank or a surge shaft and
penstock.
4. A turbine, which is the prime mover of a hydel project
which may be:
Either, impulsive type to convert energy of water
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supplied in the form of kinetic energy such as

PELTON wheel.
Or,
Reaction type to convert energy of water supplied
mostly in the of pressure energy such as FRANCIS
turbine.
5. A generator to transform mechanical energy of the

turbines to electric energy.
6. A power house for electro mechanical installations.
7. A draft tube for conveying water from turbine to the
tailrace and to recover large portion of the kinetic energy
of the flowing water.
8. A tail pool/or a tailrace tunnel or tailrace channel for
releasing the water back into flowing water body.
Inside the generator
If a magnet is inserted into a coil of conducting wire an

instantaneous current occurs in the wire which will produce a
voltage which can be observed with a voltmeter; when the magnet
is removed from the coil another instantaneous but opposing
voltage can be observed. This effect, whereby the relative motion of
a magnet and an electric coil produce a current, is known as
electromagnetic induction and was simultaneously discovered in
1831 by Michael Faraday (1791-1867, England) and Joseph Henry
(1799-1878, America). Faraday developed the first dynamo
(generator) in which the continuous rotation of a conducting copper
plate between the poles of a magnet produced a continuous
current. In a generator, mechanical energy is converted into
electrical energy via a magnetic field. In a hydroelectric power plant
the motion of water is used to move big fan like blades in a turbine
to then turn a shaft connected to a generator. The generator has a
powerful electromagnet (a rotor) which is turned inside a "'coil" of
copper bars (a stator). This produces "electromotive force," or the
process of exciting electrons to jump from atom to atom. When
electrons flow along a wire or other conductor, jumping from atom
to atom, they create an electric current, or a flow of electricity.
Generators cannot store the energy they create. Once the
mechanical energy from the flow of water is converted into
electricity it must be used immediately
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Energy generated from a given amount of water falling at a

certain height is given by the relation:
P = e*H*Q*g
Where, P = Electric Power Output in kilowatts (kW)
e = Efficiency range 0.75 to 0.88 (75% to 88%)
H = Head, in meters (m)
Q = Design flow, in cubic meters/sec (m3/s)
g = acceleration of gravity, normally 9.81 m/s/s
For small-scale hydroelectric applications, if an Efficiency
value of 81% is assumed, the following equation can be used:
P (kW) = 7.95 x H (m) x Q (m3/s)
7. STATUS OF HYDEL IN NEPAL

7.1 CURRENT POWER DEMAND AND SUPPLY
Annual peak demand in 2009: 885.28 MW

Existing capacity till 2009:
Total major hydro (NEA)- Grid connected 472,994 kw
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Total small hydro (NEA)- Isolated 4,536 kw

Total hydro (NEA) 477,530 kw
Total hydro (IPP) 158,315 kw
Total hydro (Nepal) 635,845 kw
Total thermal (NEA) 53,410 kw
Total solar(NEA) 100 kw
Total installed capacity in Nepal 689,355 kw
7.2 POWER DEVELOPMENT IN NEPAL

Until 1990, hydropower development was under the domain of
government utility, Nepal Electricity Authority (NEA) only. However,
with the enactment of new Hydropower Development Policy 1992, the
sector was opened to the private sector also. There are number of
projects already built by the private developers. Private power
producers contribute 158 MW of power to the Integrated Nepal
Power System'(INPS).The major hydropower plants with their
capacity are listed in the table as follows:
Power development of Nepal
Power projects
Existing
Major hydropower stations
S.N. Hydropower stations Power

output
1. Middle marsyangdi 70,000 kw
2. Kaligandaki A 144,000 kw
3. Maryangdi 69,000 kw
4. Kulekhani 1 60,000 kw
5. Kulekhani 2 32,000 kw
6. Trisuli 24,000 kw
7. Gandak 15,000 kw
8. Modi khola 14,800 kw
9. Devighat 14,100 kw
10. Sunkoshi 10,050 kw
11. Puwakhola 6,200 kw
Total 459,159 kw
Small hydropower stations
S.N. Hydropower stations Power
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output
1. Chatara 3,200 kw
2. Panauti 2,400 kw
3. Tatopani/myagdi (1&2) 2,000 kw
4. Seti(pokhara) 1,500 kw
5. Phewa(pokhara) 1,000 kw
6. Tinau (butwal) 1,024 kw
7. Sundarijal 640 kw
8. Pharping*** 500 kw
9. Jomsom** 240 kw
10. Baglung 200 kw
11. Khandbari** 250 kw
12. Phidim** 240 kw
13. Surnaiyagadh(baitadi) 200 kw
14. Doti 200 kw
15. Ramechhap 150 kw
16. Terathum** 100 kw
total 13,844 kw
Total power output 472,994kw
Small hydropower stations
Existing (isolated)
S.N. Hydropower stations Power output

1. Dhankuta*** 240 kw
2. Jhapra(surkhet)*** 345 kw
3. Gorkhe(illam)*** 64 kw
4. Jumla** 200 kw
5. Dhading*** 32 kw
6. Syangja*** 80 kw
7. Helambu 50 kw
8. Darchula 1&2** 300 kw
9. Chame** 45 kw
10. Taplejung** 125 kw
11. Manang** 80 kw
12. Chaurjhari(rukum)** 150 kw
13. Syarpudaha(rukum)** 200 kw
14. Bhojpur** 250 kw
15. Bajura 200 kw
16. Bajhang** 200 kw
17. Arughat gorkha 150 kw
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18. Okhaldhunga** 125 kw

19. Rupalgadh(dadeldhura) 100 kw
20. Achham 400 kw
21. Dolpa 200 kw
22. Kalikot 500 kw
23. Heldung(humla) 500 kw
Total 4,536 kw
Note:-
* line length within Nepal
**leased to private sector
*** not in normal operation
Diesel power stations
S.N. Power stations Power output

1. Duhabi multifuel 39,000 kw
2. Hetauda 14,410 kw
Total 53,410 kw
Solar power stations
S.N. Power stations Power output

1. Simikot 50 kw
2. Gamgadhi 50 kw
Total 100 kw
7.3 UNDERGOING AND FUTURE PROJECTS
Under construction
S.N. Power projects Power output

1. Upper tamakoshi 456,000 kw
2. Chamelia 30,000 kw
3. Kulekhani III (storage) 14,000 kw
4. Gamgadh 400 kw
Total 500,400 kw
- 16 -
Planned and proposed
S.N. Power projects Power output

1. Upper trisuli-3A 60,000 kw
2. Upper trisuli-3B 37,000 kw
3. Budhi gandaki 600,000 kw
4. Rahughat 27,000 kw
5. Upper seti(storage) 128,000 kw
6. Seti trisuli(storage) 128,000 kw
7. Upper modi A 42,000 kw
8. Naisyagu gad(storage) 400,000 kw
Total 1,422,000 kw
IP
P
Pro
ject
s
Co
nne
cte
d
to
IN
PS
S.N Name of Company Name of Capacity
. Project (KW)
1. Himal Power Ltd. Khimti khola 60,000
2. Bhotekoshi Power Company Ltd. Bhotekoshi Khola 36,000
3. Chilime Hydro Power Company Ltd. Chilime 20,000
4. Butwal Power Company Ltd. Jhimruk Khola 12,000
5. National Hydro Power Company Ltd. Indrawati - II 7,500
6. Butwal Power Company Ltd. Andhi Khola 5,100
7. Khudi Power Company Ltd. Khudi Khola 3,450
- 16 -
8. Arun Valley Hydro Power Company Ltd. Piluwa Khola 3,000

9. Sanima Hydro Power Company Ltd. Sunkoshi Khola 2,500
10. Thoppal Khola Hydro Power Co Pvt. Ltd. Thoppal Khola 1,650
11. Alliance power Nepal Pvt. Ltd Chaku Khola 1,500
12. Unified Hydro Power (p) ltd. Pati Khola 996
13. Khoranga Khola Hydro Power Company Pheme Khola 995
Ltd
14. Unique Hydel Co. Pvt. Ltd. Baramchi Khola 980
15. Task Hydropower company (p) Ltd. Sati-II 979
16. Gautum Buddha Hydro Power Pvt. Ltd. Sisne Khola 750
17. Rairang Hydro Power Development Rairang Khola 500
co.(p) Ltd.
18. Kathmandu Small Hydro Power systems Sali Nadi 232
Pvt.Ltd
19. Syange Bidyut Company Ltd. Syange Khola 183
Tot 1,58,315
al=
7.4 PRIVATE SECTORS IN POWER PRODUCTION
Under Construction:
1. Sunkoshi Hydro Power Co. Pvt. Ltd Lower Indrawati 4,500

Khola
2. Himal Dolkha Hydro Power Mai Khola 4,455
Company Ltd
3. Gandako Hydro Power Co. (P) Ltd. Mardi Khola 3,100
4. Ridi Hydro Power Development Co. Ridi Khola 2,400
(P) Ltd.
5. Centre for Power Dev. And Upper Hadi Khola 991
Services (p) Ltd.
6. Baneshor Hydro Power Pvt. Ltd. Lower Piluwa 990
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Total= 16,436
P
P
A
Co
nc
lu
de
d
S.N. Name of Company Name of Project Capacity
(KW)
1. Annapurna Group Pvt. Ltd. Madi-I Khola 10,000
2. United Madi Hydropower Pvt. Ltd. Lower Madi-I 9,900
3. Synergy Power Development (P) Ltd. Sipring Khola 9,658
4. Ankhu Khola Jalbidhut Co. Pvt. Ltd. Ankhu-I 6,930
5. The Gorkha Hydro Power Pvt. Ltd. Daram Khola 5,000
6. L. K. Power (P) Ltd. Dapcha-Roshi 5,000
7. Mailung Khola Hydro Power Company Ltd. Mailung Khola 5,000
8. Shivani Hydro Power Company Ltd. Phawa Khola 4,950
9. Nyadi Group (P) Ltd. Siuri Khola 4,950
10. Bavarian Hydropower Nepal(Pvt.) Ltd. Lower Nyadi 4,500
11. Bhagawati Hydropower Dev. Co. Pvt. Ltd. Bijayapur-I 4,500
12. East Nepal Development Endeavour (P) Ltd. Upper Mai Khola 3,100
13. Barun Hydro Power Development Co. (P) Ltd. Hewa Khola 2,400
14. Nikhil Jalshakti (P) Ltd. Bhairab Kunda 1,850
15. Laughing Buddhapower Nepal (P) Ltd. Lower Chaku 1,765
16. Nama Buddha Hydropower (P) Ltd. Tinau Kunda 990
17. Bojini Company Private Limited Jiri Khola 990
18. Garjang Upatyaka Hydropower (P) Ltd. Chake Khola 990
19. Joshi Hydropower Development Company P. Upper Puwa-I 985
Ltd.
20. Gayatri Hydro Power (P) Ltd. Charanawati 980
21. Aadishakti Power Development Company P. Tadi Khola 970
Ltd.
22. Universal Power Co. Pvt. Ltd. Ladku Khola 700
23. Mansarowar Powers (P) Ltd. Golmagad 580
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24. TMB Energietechnik Narayani Shankar 500

25. Multipurpose Food Industry Co. (P) Ltd. Belkhu 320
87,508
Tot
al=
1. Gitec Nepal Pvt. Ltd. Upper Modi Khola 14,000

Under Termination Process
7.5 IDENTIFIED POTENTIAL HYDEL PROJECTS:
S.N. Project Capacity(MW) Type

1 West Seti 750 Storage
2 Arun III 402 PROR
3 Kali Gandaki II 660 Storage
4 Lower Arun 308 PROR
5 Upper Arun 335 PROR
6 Karnali Chisapani 10800 Storage
7 Upper Karnali 300 PROR
8 Pancheswor 6480 Storage
9 Thulo dhunga 25 ROR
10 Tamor/Mewa 100 ROR
11 Dudh Koshi 300 Storage
12 Budhi Ganga 20 ROR
13 Likhu 4 51 PROR
14 Kabeli A 30 ROR
15 Upper Marshyangdi A 121 Storage
16 Andhikhola(Storage) 180 Storage
17 Khimti II 27 ROR
18 Langtang Khola (Storage) 218 Storage
19 Madi Ishaneshwor (Storage) 86 Storage
20 Kankai (Storage) 60 Storage
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Source: www.ippan.org.np/HPinNepal.html
7.6 TRANSMISSION LINES
Existing
132 kv transmission lines
S.N. Transmission lines Length(km) Type of

Ckts
1. Anarmani-Duhabi 85 Single
2. Kusha-Katiya(india) 19 single
3. Duhabi-Hetauda 282 Double
4. Hetauda-KL2P/S 8 Single
5. Bharatpur-Marsyangdi P/S 25 Single
6. Marsyangdi P/S- sulchatar 84 Single
7. Sulchatar-KL2 P/S 34 Single
8. Sulchatar-New bhaktapur 26.9 Single
9. New Bhaktapur- Lamosangu 48 Double
10. Lamosangu-Khimti P/S 46 Single
11. Hetauda-Gandak P/S 154 Single
12. Bharatpur-pokhara 97 Single
13. Bardghat-butwal 43 Double
14. Butwal-KGA P/S 58 Double
15. KGA P/S-lekhanath 48 Single
16. Pokhara-modikhola P/S 37 Single
17. Butwal-tanakpur 407 Single
- 16 -
18. Pathlaiyah-new parwanipur 17 Double

19. Marsyangdi-M.marsyangdi 44 Single
Total 1562.9
66kv transmission lines
S.N. Transmission line Length(km) Type of

Ckts
1. Chilime P/S-devighat P/S 43.56 Single
2. Trisuli P/S-Balaju 29 Double
3. DevighatP/S-Balaju 30 Single
4. Devighat-New chabhil 33 Single
5. Balaju-Lainchaur 2.3 Single
6. Balaju-KL1P/S 36 Double
7. KL1 P/S-Birgunj 72 Double
8. Sulchatar-Teku 4.1 Single
9. Sulchatar-Patan 4 Double
10. Teku-K3(underground) 3.5 Singlecore
11. Sulchatar-K3 6.9 Single
12. New Patan-New Baneswor 2.8 Single
13. Bhaktapur-New Chabhil 12 Single
14. New Baneshwor-Sunkoshi P/S 61 Single
15. Devighat-Trisuli 4.56 Single
16. Indrawali-Panchkhal 10 Single
Total 354.72
Under construction
1. Hetauda-Bharatpur 72 Double
2. Khimti-Dhalkewar 75 Single
Total 147
1. Thankot-Chapagaon 28.5 Double

2. Chameliya-Attaria 129 Single
Total 157.5
- 16 -
S.N. Transmission lines Length(km) Type of

Ckt
1. 220KV New 85 Double
marsyangdi-matatirtha
2. 132KV singati-lamosangu 40 Double
3. 132KV 44 Double
middlemarsyangdi-dumre-mars
yangdi
4. 132KV kabeli-damak 90 Double
5. 132KV dumree-damauli 18 Single
6. 132KV butwal-kohalpur second 208 D/C tower
circuit
7. 220KV bharatpur-bardghat 73 Double
8. 132KV 44 D/C tower
hetauda-kulekhani-2-sulchatar
circl
9. 220KV New 283 Double
hetauda-Dhalkewar-Duhabi
10. 220KV New hetauda-matatirtha 45 Double
11. 220KV Trisuli-thankot 54 Double
12. 132KV kohalpur-attariya second 200 D/C tower
circuit
Total 1,214
NEA joint venture under

Public private parternership program
Under construction
1. 400KV Dhalkewar-Muzzaffarpur 45 double

cross border line
S.N. Transmission lines Lengths(km) Type of

Ckts
1. 400KV duhabi-purnia border 22 Double
line*
2. 400KV new butwal-gorakhpur 25 Double
cross border line*
- 16 -
3. 66KV sanjen-chilime line 12 Double

Total 59
Sub-station capacity existing
S.N. Substations Lengths(km) Type of

Ckts
1. 132/11 KV 186.00 MVA
2. 132/33 KV 470.50 MVA
3. 66/33 KV 248.40 MVA
4. 66/11 KV 485.20 MVA
Total 1415.10
Under contruction
1. 132/11 matatirtha 22.5 MVA
Planned and proposed sub-station
1. 132/33 KV syangja 15 MVA

2. 132/33 KV anbukhaireni 15 MVA
3. 132/33 KV damak 30 MVA
4. 132/11 KV chapali 30 MVA
5. 132/33 KV matatirtha 32 MVA
6. 132/33 KV kusum 30 MVA
7. 132 KV hapure 30 MVA
8. 132 KV hetauda 30 MVA
9. 132 KV pathlaiyah 22.5 MVA
10. New butwal switching centre 30 MVA
11. New bharatpur switching station 30 MVA
Total 294.5 MVA
All Sources:-
NEA (Nepal electricity authority) Annual Report 2009
(If otherwise not cited)
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7.7 CURRENT TARIFFSTRUCTURE
Tariff Rates
(Billing Effective since September 17, 2001)
1. D
O
M
E
S
T
I
V
C
O
N
S
U
M
E
R
S
A Minimum Monthly Charge: METER Minimum Charge Exempt
CAPACITY (NRs.) (KWh)
Up to 5 Ampere 80.00 20
15 Ampere 299.00 50
30 Ampere 644.00 100
60 Ampere 1394.00 200
Three phase supply 3244.00 400
B Energy Charge:
- 16 -
Up to 20 Units Rs. 4.00 per unit

21-250 Units Rs. 7.30 per unit
Over 250 Units Rs. 9.90 per unit
2 T
. E
M
P
L
E
S
E Rs. 5.10 per units
n
e
r
g
y
C
h
a
r
g
e
3 S
. T
R
E
E
T
LI
G
H
T
S
A With Energy Meter Rs. 5.10 per units
B Without Energy Meter Rs. 1860.00 per
KVA
4 T
. E
M
P
O
R
- 16 -
A
R
Y
S
U
P
P
L
Y
n
er
g
y
C
h
ar
g
e
5 C
. O
M
M
U
N
IT
Y
W
H
O
L
E
S
A
L
E
C
O
N
S
U
M
E
R
- 16 -

n
e
r
g
y
C
h
a
r
g
e
6 I Monthly Demand Energy
. N Charge(Rs/KVA) Charge(Rs/u
D nit)
U
S
T
R
A
L
A Low Voltage (400/230 Volt)
(a) Rural and Cottage 45.00 5.45
(b) Small Industry 90.00 6.60
B Medium Voltage (11 KV) 190.00 5.90
C Medium Voltage (33 KV) 190.00 5.80
D High Voltage (66 KV and above) 175.00 4.60
7 C
. O
M
M
E
R
CI
A
L
A. Low Voltage (400/230 volt) 225.00 7.70
C Medium Voltage (66 KV and above) 216.00 7.40
8 N
. O
N
-
- 16 -
C
O
M
M
E
R
CI
A
L
A Low Voltage (400/230 Volt) 160.00 8.25
C Medium Voltage (33 KV) 180.00 7.80
9. I
R
R
I
G
A
T
I
O
N
A Low Voltage (400/230 Volt) - 3.60
B Medium Voltage ( 11 KV) 47.00 3.50
C Medium Voltage ( 33 KV) 47.00 3.45
1 W
0. A
T
E
R
S
U
P
P
L
Y
A Low Voltage (400/230 Volt) 140.00 4.30
C Medium Voltage ( 33 KV) 150.00 4.00
1 T
1. R
- 16 -
A
N
S
P
O
R
T
A
T
I
O
N
A Medium Voltage ( 11 KV) 180.00 4.30
TIME OF DAY (TOD) TARIFF RATES
Consumer Category Monthly

Demand Energy
Charge
(Rs./unit
)
Supply Level Charge Peak Off-Peak Normal
(Rs./KVA) Time
18:00-23 23:00-6: 6:00-18:
:00 00 00
A H
i
g
h
V
o
lt
a
g
e
(
6
6
K
V
a
- 16 -
n
d
A
b
o
v
e
)
1 Industrial 175.00 5.20 3.15 4.55
B M
e
d
i
u
m
V
o
lt
a
g
e
(
3
3
K
V
)
1 Industrial 190.00 6.55 4.00 5.75
2 Commercial 216.00 8.50 5.15 7.35
3 Non-commercial 180.00 8.50 5.35 7.75
4 Irrigation 47.00 3.85 2.35 3.40
5 Water Supply 150.00 4.55 2.75 3.95
6 Transportation 180.00 4.70 2.95 4.15
7 Street Light 52.00 5.70 1.90 2.85
C M
e
d
i
u
m
V
o
- 16 -
lt
a
g
e
(
1
1
K
V
)
1 Industrial 190.00 6.70 4.10 5.85
2 Commercial 216.00 8.65 5.25 7.55
3 Non-commercial 180.00 9.00 5.45 7.85
4 Irrigation 47.00 3.95 2.40 3.45
5 Water Supply 150.00 4.60 2.80 4.10
6 Transportation 180.00 4.80 3.00 4.25
7 Street Light 52.00 6.00 2.00 3.00
Note:
a. if demand meter reads kilowatts (KV) then KVA=KW/0.8
b. 10% discount in the total bill amount will be given to the Government of Nepal
approved industrial District.
c. 25% discount in the total bill amount will be given to the Nepal Government
Hospital and Health Centers (except
Residential complex)
Source: NEA Annual Report 2009
10. MAJOR GOVERNMENT AGENCIES IN

POWER SECTOR
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The following are the main agencies for development the power
sector:
Ministry of Water Resources (MOWR).
Water and Energy Commission Secretariat (WECS)planning
and policy research.
Department of Electricity Development (DOED)licensing,
facilitation, promotion, compliance monitoring, project study.
Nepal Electricity Authority (NEA)public utility for generation,
transmission and distribution of electricity.
Electricity Tariff Fixation Commission (ETFC)tariff setting.
Moreover, for the promotion of hydropower pojects, the DOED has

been designated as One window under the MOWR, with these
responsibilities:
Issuance of survey and project licenses,
Providing concessions and incentives,
Assistance in importing goods,
Assistance in obtaining land, and
Assistance in obtaining permits and approvals.
11. POLICY AND LEGAL FRAMEWORK FOR

PRIVATE SECTOR PARTICIPATION
National water resources strategy
Realizing that the development and management of water resources

should be undertaken in an holistic and systematic manner aimed at
the sustainable use of the resources ensuring conservation and
protection of environment, Nepal has adopted the National Water
Resources Strategy. This Strategy provides the country with a
directional guideline of water resources development over the next 25
years. In order to translate the key outputs identified by the Strategy
into concrete action plans, a National Water Plan has recently been
adopted by the government. The Plan has set some targets to be
fulfilled in a stipulated time frame. The main highlights of this Plan are
summarized as follows:
Targets by 2017
- 16 -
Up to 2,035 MW hydropower electricity is developed to meet the

projected domestic demand at base case scenario, excluding
export;
50% of households are to be supplied with Integrated Nepal
Power System (INPS) electricity, 12% by isolated (micro and
small) hydro systems, and 3% by alternative energy; and
Per capita electricity consumption of 160 KWh will be achieved.
Targets by 2027
4,000 MW of hydropower is developed to meet the projected

domestic demand at base case scenario, excluding export,
75% of the households are to be supplied with INPS electricity,
20% by isolated (micro and small) hydro systems and 5% by
alternate energy,
Per capita electricity consumption of over 400 KWh will be
achieved, and
Nepal exporting substantial amounts of electricity to earn
national revenue.
Hydropower development policy
The Government is pursuing water resources development in Nepal

from three different approaches. Firstly, to develop small and
decentralized hydropower projects to meet the local demands in
remote and isolated regions of the country. Secondly, to develop
medium sized power projects to meet the national demand within the
national grid including surplus for export, and to develop local
capacity. Thirdly, large-scale multi purpose projects to meet the
regional demand for food, energy and flood control. With this vision,
the Government has adopted the Hydropower Development Policy
of 2001 for attracting both local and foreign investment. The
following are the main highlights of this Policy:
Objectives
To generate electricity at low cost by utilizing the water

resources available in the country,
To link electrification with the economic activities,
to render support to the development of rural economy by
- 16 -
extending rural electrification, and

to develop hydro power as an exportable commodity.
Management of investment risk
No nationalization of Projects
Exchange facility (to repatriate)
Government land on lease.
Water rights.
Government may be a partner in storage project
Transfer of project
Export of electricity
.
Provision for internal electricity market
For private sector operated hydropower projects with capacity up to

one MW and not linked to the grid, the Independent Power
Producer (IPP) may sell and distribute the electricity by determining
the tariff rate of the electricity on its own.
Provision relating to visa
Non-tourist visa and work permit shall be provided to the investor of

hydropower project, his/her authorized representative and necessary
foreign experts, skilled manpower and their families as provided for in
the agreement until the construction and operation of the project.
Licensing procedures
The Electricity Act of 1992 has set following time limits for the
issuance of licenses:
Survey license issued within 30 days.
Period of such license up to 5 years.
Project license issued within 120 days.
Period of such license up to 35 years.
Public consultation before issuance of project license.
- 16 -
Application process for

generation/transmission/distribution
Application process for hydropower projects from

100 kW1,000 kW
For a project with capacity in this range no license is required.

However, the proponent needs to submit project related information to
the MOWR through the DOED. In addition, he/she has to submit desk
study report, (topographic map, area of distribution, number of
beneficiary, information of other water use, boundaries of survey area,
recommendation from VDC/municipality/ work schedule; Letter of
Interest for the Power Purchase Agreement, financial evidence).
License application process for hydropower

projects>1,000 kW
For the development of projects with the capacity more than 1000 kW,
the proponent has to obtain:
Survey License
To study generation, transmission, distribution survey of a

project.
Operation License
- Production License (for construction and operation of a production

facility),
- Transmission License (for construction and operation of a

transmission),
Distribution License (for construction and operation of a

distribution facility).
Supporting documents required to obtain

generation/transmission/distribution license
The proponent will be granted Generation, Transmission, or
- 16 -
Distribution License with the submission of following documents:
Feasibility Study Report, including:

- Detailed description of the project,
- Description of related transmission line to evacuate power, and
- approved IEE/EIA Report from concerned Ministry.
Detail Financing Plan, including:

- Estimated cost of the project,
- Financial capability of the investors of the project,
- Commitment of the financial institutions to be involved directly in the
project,
- Percentage of liability of investor, and
- Equity and debt ratio.
Power Purchase Agreement(PPA)
Other Requirements
- Certificate of registration,
- Memorandum of article,
- Memorandum of association,
- Industrial registration certificate,
- PAN (permanent account number), and
- Details of technical capability.
Steps to be taken by the proponent after obtaining

generation/transmission/ distribution license
Once the proponent obtains the Generation, Transmission, or

Distribution License he would have the following obligations:
Start construction work within 1 year,
Complete financial closure within 1 year of license issued date,
Submit bi-annual progress report until construction is completed,
Testing and commissioning,
Start commercial operation,
Pay royalty (Production licensee).
- 16 -
Marketing electricity
For the sale of electricity, two types of markets, domestic and

export are available. In order to sell the electricity, the
proponent does it through a Power Purchase Agreement (PPA)
with the NEA. For the export of electricity, bi-lateral
arrangements exist with the neighboring India.
12.CHALLENGES IN HYDEL DEVELOPMENT

Some challenges behind the minuscule development of hydel in Nepal
are listed hereunder:
Inadequate institutional capacity for hydropower development,

planning and policy analysis.
Lack of commitment, priority and vision on hydro power
development at political level.
Political instability and poor governance.
Lack of transparency in hydropower planning and project
preparation
Manipulation of basic data and results of power
development(lack of public access/participation)
13. VANTAGES OF HYDEL PROJECTS

Hydroelectricity enjoys several advantages over most other sources of
electrical power. These include:
A high level of reliability, proven technology, high efficiency,

very low operating and maintenance costs, and the ability to
easily adjust to load changes.
As many hydropower plants are located in conjunction with

reservoirs, hydropower projects often provide water, flood
control, and recreation benefits. Often large dams become site
of tourist attractions.
- 16 -
In addition, hydropower does not produce waste products that

contribute to air quality problems, acid rain, and greenhouse
gases. It is a renewable resource that reduces the use of other
fuels (oil, gas, and coal).
14. LIMITATIONS OF HYDEL PROJECTS

Hydel projects have very few limitations than other energy sources.
Some disadvantages are mentioned below:
high initial costs of facilities
changes in stream regimens (can affect fish, plants, and wildlife

by changing stream levels, flow patterns, and temperature)
Inundation of land and wildlife habitat (due to creation of

reservoir); and displacement of people living in the reservoir
area.
Failure of large dams may bring catastrophe killing lives and

destroying properties.
The building of large dams can cause serious geological damage.

For example, the building of the Hoover Dam in the USA
triggered a number of earth quakes and has depressed the
earths surface at its location.
15. CONCLUSION
- 16 -
The latest scenario of hydel generation with established projects,

undergoing projects and feasible projects are clearly shown in this
report. The theme of status of hydel in Nepal is believed to be depicted
by those data. Moreover, policy and legal framework requirement for
private sectors participation in hydel development has been explained
herein. Also challenges in hydel development in Nepal have been
listed. Furthermore, brief introduction and history of hydel is
mentioned in this report. Technical aspects regarding hydel generation
has been very briefly touched.
The annual peak demand of electricity in 2009 was recorded 885.28

MW (which was 8.96% higher than the 2008 demand of 812.5 MW)
while the total production was 689.36 MW. This shortage of about
300 MW of electricity has lead to 16 hours per day of load shedding
on that year. Fortunately by buying 60 MW of electricity from India,
the load shedding hours were reduced to 12 hrs per day on the same
year. Electricity demand in Nepal increases by at least 80 MW
annually. And no project is likely to add electricity in national grid in
coming months so the load shedding hours may soar up to 16 hrs per
day this year too.
Finally, it is hoped that this report would prove beneficial to anyone

who has got interest on hydel most especially, on hydel generation of
Nepal.
- 16 -
16. BIBLIOGRAPHY
1. Central Bureau of Statistics, Nepal ko tathyankiya jhalak 2066
B.S.
2. International Energy Agency (IEA).

http://www.ieahydro.org/faq.htm
3. Nepal Journals Online, Hydro Nepal: Journal of water, Energy

and Environment, volume 5 (2009),
http://nepjol.info/index.php/HN
4. Nepal Electricity Authority(NEA),NEA Annual Report 2009,

http://www.nea.org.np/
5. Independent Power Producers Association, Nepal(IPPAN),

http://www.ippan.org.np
6. http://www.electricityforum.com/hydroelectricity.html
7. International small hydro atlas, http://www.small-hydro.com/
8. Department of Electricity Development, Ministry of Energy.

http://www.doed.gov.np
9. Water and Energy Commission Secretariat, http://wec.gov.np/
10. Alternative Energy Promotion Centre(AEPC),

http://www.aepc.gov.np/
11. Wikipedia, http://en.wikipedia.org/wiki/Hydroelectricity
12. http://tech.nepalko.info/2010/03/nepals-total-hydropower-poten
tial-update-requirement/
13. Old study reports by seniors as reference.
- 16 -
- 16 -

Status of Hydroelectricity in Nepal Potential and Challenges

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STATUS OF HYDEL IN NEPAL: POTENTIAL AND CHALLENGES

On the basis of different methods of generation, hydel projects may be

I. Conventional type(storage type)(STO)

It is the most traditional and common type. It uses dams on

II. Pumped Storage type

III. Run-of-the River type(ROR)

On the basis of size and the production capacities of the hydel

I. Large hydel project

Although no official definition exists for the capacity range of

II. Small hydel project

The definition for small hydel projects (plants) may vary

III. Micro hydel project

The term Micro hydro is used for hydro electric power

IV. Pico hydel project

The hydel project under 5KW capacity is termed as Pico hydel

that require only very small amount of electricity. This are

The history of electricity development of Nepal has crossed 100 years

Although bestowed with tremendous hydropower resources, only about

The electricity demand in Nepal is increasing by about 7-9%

The system loss is one of the major issues to be addressed to improve

1. To know about the history of hydel in world and Nepal.

Office of Nepal Electricity Authority (NEA),

2. SECONDARY SOURCES OF DATA

As secondary sources of data, newsletters, annual

The data and information obtained from primary sources and

6. TECHNICAL ASPECTS OF HYDEL

The water required for hydel generation is received from the

The water is made to run from higher elevation to lower elevation

So basically the major components of a hydel projects can be listed

supplied in the form of kinetic energy such as

5. A generator to transform mechanical energy of the

Inside the generator

If a magnet is inserted into a coil of conducting wire an

Energy generated from a given amount of water falling at a

7. STATUS OF HYDEL IN NEPAL

Annual peak demand in 2009: 885.28 MW

Total major hydro (NEA)- Grid connected 472,994 kw

Total small hydro (NEA)- Isolated 4,536 kw

7.2 POWER DEVELOPMENT IN NEPAL

Major hydropower stations

S.N. Hydropower stations Power

Small hydropower stations

S.N. Hydropower stations Power

Small hydropower stations

S.N. Hydropower stations Power output

18. Okhaldhunga** 125 kw

Diesel power stations

S.N. Power stations Power output

Solar power stations

S.N. Power stations Power output

7.3 UNDERGOING AND FUTURE PROJECTS

S.N. Power projects Power output

Planned and proposed

S.N. Power projects Power output

8. Arun Valley Hydro Power Company Ltd. Piluwa Khola 3,000

7.4 PRIVATE SECTORS IN POWER PRODUCTION

1. Sunkoshi Hydro Power Co. Pvt. Ltd Lower Indrawati 4,500

24. TMB Energietechnik Narayani Shankar 500

1. Gitec Nepal Pvt. Ltd. Upper Modi Khola 14,000

S.N. Project Capacity(MW) Type

7.6 TRANSMISSION LINES

132 kv transmission lines

S.N. Transmission lines Length(km) Type of