status of hydroelectricity in nepal potential and challengese2809d doc

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STATUS OF HYDROELECTRICITY 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.

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

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.

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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

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

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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.

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

● 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.



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

water‘s 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

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

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

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

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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 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

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

Planned and proposed

S.N. Power projects Power output

1. Upper trisuli-3‘A‘ 60,000 kw

2. Upper trisuli-3‘B‘ 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

IPP

Projects

Connected

to INPS

S.N. Name of Company Name of

Project

Capacity

(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

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 Ltd

Pheme Khola 995



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 co.(p) Ltd.

Rairang Khola 500

18. Kathmandu Small Hydro

Power systems Pvt.Ltd

Sali Nadi 232

19. Syange Bidyut Company Ltd.

Syange Khola 183

Total= 1,58,315

7.4 PRIVATE SECTORS IN POWER PRODUCTION

Under Construction:

1. Sunkoshi Hydro Power Co. Pvt. Ltd Lower Indrawati Khola

4,500

2. Himal Dolkha Hydro Power

Company Ltd

Mai Khola 4,455

3. Gandako Hydro Power Co. (P) Ltd. Mardi Khola 3,100

4. Ridi Hydro Power Development Co. (P) Ltd.

Ridi Khola 2,400

5. Centre for Power Dev. And Services (p) Ltd.

Upper Hadi Khola 991

6. Baneshor Hydro Power Pvt. Ltd. Lower Piluwa 990

Total= 16,436



PPA Concluded

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.

Ltd.

Upper Puwa-I 985



20. Gayatri Hydro Power (P) Ltd.

Charanawati 980

21. Aadishakti Power Development Company P.

Ltd.

Tadi Khola 970

22. Universal Power Co. Pvt. Ltd.

Ladku Khola 700

23. Mansarowar Powers (P) Ltd.

Golmagad 580

24. TMB Energietechnik Narayani Shankar

500

25. Multipurpose Food Industry Co. (P) Ltd.

Belkhu 320

Total= 87,508

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

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

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


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

Ckt

1. 220KV New marsyangdi-matatirtha

85 Double

2. 132KV singati-lamosangu 40 Double

3. 132KV middlemarsyangdi-

dumre-marsyangdi

44 Double

4. 132KV kabeli-damak 90 Double

5. 132KV dumree-damauli 18 Single

6. 132KV butwal-kohalpur second

circuit

208 D/C

tower

7. 220KV bharatpur-bardghat 73 Double

8. 132KV hetauda-kulekhani-2-

sulchatar circl

44 D/C

tower

9. 220KV New hetauda-Dhalkewar-Duhabi

283 Double

10. 220KV New hetauda-matatirtha 45 Double



11. 220KV Trisuli-thankot 54 Double

12. 132KV kohalpur-attariya second circuit

200 D/C tower

Total 1,214

NEA joint venture under Public private parternership program

Under construction

1. 400KV Dhalkewar-Muzzaffarpur cross border line

45 double


S.N. Transmission lines Lengths(km) Type of Ckts

1. 400KV duhabi-purnia border

line*

22 Double

2. 400KV new butwal-gorakhpur cross border line*

25 Double

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)

7.7 CURRENT TARIFFSTRUCTURE

Tariff Rates



(Billing Effective since September 17, 2001)

1. DOMESTIV CONSUMERS

A Minimum Monthly

Charge: METER CAPACITY

Minimum

Charge (NRs.)

Exempt

(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:

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. TEMPLES

Energy

Charge

Rs. 5.10 per

units

3. STREET LIGHTS

A With Energy

Meter

Rs. 5.10 per units

B Without Energy

Meter

Rs. 1860.00 per KVA

4. TEMPORARY SUPPLY

Energy

Charge

Rs. 13.20 per

units

5. COMMUNITY WHOLESALE

CONSUMER



Energy Charge

Rs. 3.50 per units

6. INDUSTRAL Monthly

Demand Charge(Rs/KVA)

Energy

Charge(Rs/unit)

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. COMMERCIAL

A. Low

Voltage

(400/230 volt)

225.00 7.70

B Medium Voltage

(11 KV)

216.00 7.60

C Medium Voltage

(66 KV and

above)

216.00 7.40

8. NON-COMMERCIAL



A Low Voltage

(400/230 Volt)

160.00 8.25

B Medium

Voltage (11 KV)

180.00 7.90

C Medium

Voltage (33 KV)

180.00 7.80

9. IRRIGATION

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

10. WATER SUPPLY

A Low Voltage (400/230

Volt)

140.00 4.30


C Medium Voltage ( 33 KV) 150.00 4.00

11. TRANSPORTATION

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

(Rs./KVA)

Peak

Time

Off-

Peak

Normal

18:00-23:00

23:00-6:00

6:00-18:00

A High

Voltage



(66 KV and

Above)

1 Industrial 175.00 5.20 3.15 4.55

B Medium

Voltage (33 KV)

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 Medium Voltage

(11 KV)

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

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

● 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 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.

Application process for generation/transmission/distribution

Application process for hydropower projects from 100 kW–1,000 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 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).

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.

● 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).

pradeep

Highlight



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 earth‘s surface at its location.

15. CONCLUSION

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. BIBLIOGRAPHY

1. Central Bureau of Statistics,‖ Nepal ko tathyankiya jhalak 2066 B.S.‖

pradeep

Highlight



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-

potential-update-requirement/

13. Old study reports by seniors as reference.

http://www.google.com/url?q=http%3A%2F%2Fwww.ieahydro.org%2Ffaq.htm&sa=D&sntz=1&usg=AFQjCNFB7DFXI4g3DNX7eyhI8lADLzLuIg











http://www.google.com/url?q=http%3A%2F%2Fnepjol.info%2Findex.php%2FHN&sa=D&sntz=1&usg=AFQjCNEvcx_bZvdN7eqrGtJ-3Jt7rjP76g











http://www.google.com/url?q=http%3A%2F%2Fwww.nea.org.np%2F&sa=D&sntz=1&usg=AFQjCNGIbksgQL_Mp207o6w8Z3Tzmtx_LQ










http://www.google.com/url?q=http%3A%2F%2Fwww.ippan.org.np%2F&sa=D&sntz=1&usg=AFQjCNGN8sy1kcBEsii93eqbhSPlc1yeRA









http://www.google.com/url?q=http%3A%2F%2Fwww.electricityforum.com%2Fhydroelectricity.html&sa=D&sntz=1&usg=AFQjCNFNcJYnBZumjpKSq_Fg2h2J-3vrsQ











http://www.google.com/url?q=http%3A%2F%2Fwww.small-hydro.com%2F&sa=D&sntz=1&usg=AFQjCNEnS_NfM8_xfYh6DL0Bpd9u2ym_ZQ










http://www.google.com/url?q=http%3A%2F%2Fwww.doed.gov.np%2F&sa=D&sntz=1&usg=AFQjCNFpKC40EQ06dVMlBOYcOQ4gpeCvBg









http://www.google.com/url?q=http%3A%2F%2Fwec.gov.np%2F&sa=D&sntz=1&usg=AFQjCNGjkEh8X1ktJskU9Rlv93R1c3I-UQ








http://www.google.com/url?q=http%3A%2F%2Fwww.aepc.gov.np%2F&sa=D&sntz=1&usg=AFQjCNFPxMoADSoAU-P6d-Q_3-azc679Zw










http://www.google.com/url?q=http%3A%2F%2Fen.wikipedia.org%2Fwiki%2FHydroelectricity&sa=D&sntz=1&usg=AFQjCNG7Lq_tE7-GTCSdUGoS69NXEaZ2UQ











http://www.google.com/url?q=http%3A%2F%2Ftech.nepalko.info%2F2010%2F03%2Fnepals-total-hydropower-potential-update-requirement%2F&sa=D&sntz=1&usg=AFQjCNGZ7P0lceBDtICvwvgSB2u86JJAOg




















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