Nepalese Power System

and

Nepal Electricity Authority

Lila Nath Bhattarai

Deputy Managing Director

Engineering Services Directorate

NEA

NEPALESE POWER SYSTEM

Early start but very slow pace of development

Hydro based (mostly R-o-R)

Installed capacity : 812 MW

Hydro : 769 & Thermal : 53 MW

Seasonal Storage Plant : 92MW

PROR : 305 MW

ROR : 372MW

Import from India : About 323 Mw

Distinct seasonal variation in generation

Demand supply mismatch

Access to Electricity: About 60% of the population

Transmission lines bottleneck

Long and poorly designed distribution line:

Poor System Performance : Low LF and high Losses

Modalities of Hydropower Development

NEA/GoN own Funding

GoN/NEA (Multilateral and Bilateral

Funding)

Public Private Partnershi

Foreign Direct Investment

National Private Funding

Kataiya - 125

MW

Bisanpur

(8MW) &

Rajbiraj

5 MW

Jaleswor

12 MW

Raxaul

12 MW

Ramnagar

28 MW

Nepalgunj

8 MW

Tanakpur

35 MW

Muzaffarpur

90 MW (

Total Import Capacity

(Present ) = 323 MW

HYDROPOWER DEVELOPMENT IN NEPAL

644

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160

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Year

Yea

rly

Prod

uction

(M

W)

0

250

500

750

1000

Cum

ulat

ive

Prod

uction

and

For

ecas

t

(MW

)

Yearly Prod. (MW) Cumulative Prod. (MW) Forecast (MW)

211.88

70.00

141.88

0

50

100

150

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Insta

lled C

apacity (

MW

) YEARLY HYDROPOWER GENERATION (MW)

(During Last 10 years)

Total MW Public Sector Private Sector

Hydro Projects Under Construction (NEA)

Project Capaci

ty

(MW)

Completion Financing

Chameliya 30 2014/15 GON, NEA &

S/Korea

KL III 14 2014/15 GON, NEA

U. Trishuli 3A 60 2016/17 GON, NEA & China

Rahughat 32 2017/18 GON, NEA & India

Upper Sheti 136

Hydro Projects Under Construction (NEA Subsidiary

and Associated Companies)

Project Capacity

(MW)

Completion Financing

Upper Tamakoshi 456 2016/17 UTHPCL- Local Fin.

Tanahu Hydro 140 2019/20 THPCL- ADB, Japan,

NG

Rasuwagadhi 111 2018/19 RGHPCL- Local Fin.

M. Bhotekoshi 102 2018/19 BKHCL-Local Fin.

Upper Sanjen 14.8 2015/16 SHPCL-Local Fin.

Sanjen 42.5 2016/17 SHPCL-Local Fin

Trishuli 3B 42 2019/20 THPCL-Local Fin.

Total =908.3 MW,

Major Hydro Projects Under Construction (IPPs)

Project Capacity (MW)

Completio

n

Financing

Upper

Marsyangdi A

50 2016/17 FDI

Mistri Khola 42 2017/18 Local Financng

Other IPP

Prjects

194 2013/14 to

2015/16

Local financing

Total =286 MW,

Projects under construction

Upper Tamakoshi (456 MW)

Trishuli 3A (60 MW)

Trishuli 3B (37 MW)

Upper Seti Storage (140MW)

Kulekhani III (14 MW)

Rahughat (32 MW)

Chameliya (30 MW)

Middle Bhotekoshi (102 MW)

Rasguwagadi (111MW)

Upper Sanjen (14.8 MW)

Sanjen (42.5MW)

Location of Study Projects

Tamakoshi V HEP

Upper Arun

Upper Modi A/Upper Modi

Andhi hola

Tamor

Uttar Ganga

11

Chainpur-Seti Upper Bheri

Dudhkoshi Storage HEP

Projects Studied by NEA and Transferred to to other

Agencies / Companies

Name of Projects MW Owner Remarks

1 Khimti Khola HEP 60 Himal Power Company Generating

2 Bhote Koshi HEP 36/45 Botekoshi Power Company Generating

3 Upper Karnali HEP 300 GMR PDA Concluded

4 Arun III HEP 402 Satlaj PDA Concluded

5 Kabeli HEP 32 Butwal Power Company Processing

6 Likhu HEP 51 Green Energy Processing

7 Tila Khola HEP 250 IPP Processing

8 Tamor Mewa HEP 101 Spark Hydro

9 Upper Raughat 40 IPP FS Study

10 Budigandaki Storage 1200 Budigandaki Development Board DD

11 Nalsaugad Storage 400 Nalsaugad Development Board DD

12

STUDY LEVEL

Detailed Engineering Design

Tamakoshi V HEP : 87 MW/419.30GWh

Upper Arun HEP : 335 MW/2050GWh

Dudhkoshi Storage HEP : 300 MW/1806 GWh

Upper Modi “A” HEP : 42 MW/214.87GWh

Upper Modi HEP : 18 MW/95.68GWh

13

STUDY LEVEL

Feasibility Study

Andhikhola Storage HEP : 180 MW/693GWh

Tamor Storage HEP : 762 MW/3151.5 GWh

Uttar Ganga Storage HEP : 300 MW/1297 GWh

Upper Bheri HEP : 85 MW/452 GWh

Chainpur Seti HEP : 140 MW/711 GWh

14

Projects transferred to other Agencies and Private

Sectors

Budigandaki Storage HEP (1200 MW)

Nalsyau gad Storage HEP (400 MW)

Arun III HEP (900 MW)

Khimti HEP (60 MW)

Upper Karnali HEP (900 Mw)

Bhotekoshi HEP (45 MW)

Dudhkoshi Storage Hydroelectric Project

Historical Background • Project Identification : Identified in JICA Koshi Basin Master

Plan Study (1995) as PROR project.

• Feasibility study (1998): Identified it as a Fast Track Storage Project in the Range of 300 MW.

• Reactivated by NEA in 2010 and carried out Review Study of the project

• It is one of the Prioritized Project (P1) of Nepal Government.

• Preparation of the project for implementation including Detailed Engineering Design and preparation of bidding document is in progress.

• ADB Grant for the ongoing study

. 17

Particulars Details

Catchment Area 4100 km2

Total Sorage

Volume

687.7 Mm3

Full Supply Level 580 masl

Rated Net Head 249 m

Installed

Capacity

300 MW

Total Annual

Energy

1806 GWh

Project Cost 690 Million USD

B/C Ratio 1.61

Relocation of

Houses

75 HH

18

Time Bound Action Plan Particulars Remarks

Award of Contract 30 May, 2016

Commencement of services July 1, 2016

Project Preparation for Implementation

Upgraded Feasibility Study

Detailed Engineering Study

EIA and SIA Study

Bidding Document Preparation

: Oct, 2017

: Oct, 2018

: Aug, 2018

: Dec, 2018

Decision on Implementation

Modality

Financial Closure

Generation License

Tendering and Contracting

Construction and Completion

: Mid of 2019

End of 2019

: Mid of 2019

: Mid of 2020

: Mid of 2020 to Mid of 2026

Upper Arun

Background of the Project Particulars Details Remarks

Project

Identification

Koshi Basin Master Plan 1985 As PROR Project

Feasibility Study In 1991 by JV of MKC,

Lahmeyer, TEPCO and

NEPECON

Grant Assistance from UNDP

Financial

Arrangement

World Bank has provided Aid

under PSRSHDP (Power Sector

Reform and Sustainable

Hydropower Development

Project) Credit No.5728-HP

Development Model

Cabinet Decision : NEA to

Construct the project under

the Ownership of the

Government

Modality: NEA/GoN

Ikhuwa Khola (30MW) to be

developed as subsidiary to

address social & public

ambitions

Modality :PPP

20

Upper Arun

Upper Arun Hydroelectric ProjectU

Particulars Details

Catchment Area 25,700 sq.km.

Firm Discharge 58.7 cumecs (Q95)

Design Discharge 78.80 cumecs ( Q70)

Gross Head 492 m

Installed Capacity 335 MW

Total Annual Energy 2050 GWh

Project Cost 500.79 Milion USD ( year 2015)

B/C Ratio 1.69

UAHEP

• In order to share benefits of

UAHEP with the local

communities, Ikhuwa Khola

is proposed to be developed

through PPP mode

• Conceptualized to develop as

an integrated part of UAHEP

21

Ikhuwa Khola Hydroelectric Project- Features

• Location: 8 km D/s of Upper Arun P/H Site and 5 km U/s of Arun-3 Headworks

• Power and Energy

• Net head = 601 m

• Discharge Q40 = 6.02 m3/s

• Installed Capacity = 30 MW

• Average Annual Energy of = 181.74 GWh

• Estimated Cost (Excluding Taxes an Duties): NRs. 5.02 Billion

• B/C : 1.22 (Financial), 1.96 (Economic)

• Internal rate of Return : 13.62 (Fianncial), 20.46 (Economic)

Based on Draft Feasibility Study Report of DoED

22

Access Road to Powerhouse Site and Dam Site

Total Length - 23.4 km

Road - 21.6 km

Road Tunnel - 1.8 km

One Bridge over Arun

River

Access road originates from

the highway leading to

Kimathanka

UNDER CONSTRUCTED ROAD

FROM NUM TO KIMATHANKA

23

• Cascade Project of Upper Tamakoshi HEP.

• Tailrace of Upper Tamakoshi feeds water to the

headrace tunnel of Tamakoshi V

• Powerhouse and the cascade inter connection lie by

the side of the access Road to Upper Tamakoshi.

• Short Transmission line of about 4 km length.

• Gross Head 160.93 m

• 8.20 Km long Headrace Tunnel

• Under ground Powerhouse

24

Installed Capacity -87 MW

Annual Energy - 460.5 GWh

Design Discharge – 66 m3/s

Without Rolwaling With Rolwaling

Gross Head 160.93 m 160.93 m

Net Head 149.61 m 149.61 m

Installed Capacity 87 MW 87 MW

Annual Energy 419.30 GWh 462.53 GWh

Dry Season Energy 54.67 GWh 65.79 GWh

Wet Season Energy 364.63 GWh 396.74 GWh

Project cost in US$ 131.99 million

Financial cost in NRs 13,660.3 million (with IDC)

Rate of Return 14.00%

B/C Ratio 1.17

Energy Cost Rs/ Kwh 3.19 / 3.81 (with / without Rolwaling)

Energy Generation And Fininancial Indicators

25

Tamor Storage Hydroelectric Project

Historical Background • Project Identification : Identified in JICA Koshi Basin Master

Plan Study (1995) as storage project.

• NEA carried out Preliminary study of the project by NEA in 2011.

• Survey Licensed issued to NEA on 2070/4/16 (2013/7/31for 200 MW

and for full supply level 450 masl without affecting upstream

projects ( Kabeli A and Hewa).

• NEA has carried out Alternative Study of Tamor Storage HEP

inorder to optimize the available resources. The study concluded

that optimized dam height at 208m is financially very attractive

Comparison of Alternatives

Description Alternative 1 Alternative 2

Installed Capacity (MW) 252 762

Full Supply Level (masl) 450 550

Dry Season Energy, November to April (GWh) 366 1075

Wet Season Energy, May to October (GWh) 743 2076.50

Average Annual Energy (GWh) 1109 3151.5

Base Cost (Million US$ - 2014 Price Level) 609.422 1217.31

Specific Energy Cost as of the Year 2013 (Rs. per

kWh) 6.99 5.03

Benefit Cost Ratio(LRMC) 1.14 1.61

6/5/2016 27

Result of the Studies

• Tamor is the high sediment laden river. In case of Alternative -1,

Rockfill Dam is not feasible. Concrete gravity with the provision of

flushing arrangement might be marginally feasible.

• Alternative-2 is considered with rockfill dam with reservoir life of

50 years, FSL at 550 masl. Installed capacity of 762 MW is found to

be optimum.

• Alternative -2 is technically feasible and economically viable. It is

quite attractive. Minimum disturbance in the natural settings. Only

about 250 households to be relocated.

• Capacity and annual energy would be increased to 762MW/3152

GWH from 252 MW/1109 GWH (Almost 3 times), however, cost

would increase from 609 to 1217 million US$. Development at 450m

FSL : Lost the opportunity to produce 510 MW of reliable power

and energy of 2042 GWhr at the cost of 607 million US$.

6/5/2016 28

Upper Modi “A” HEP: Upper Scheme of Modi Cascade

• Gross Head = 287.69 m

• Tunnel Length =5.9 km

• Surface Powerhouse

• Located in Kaski district

•Installed Capacity - 42 MW

•Average Energy output -214.87 GWh • Design Discharge - 17.60 m3/sec

•Cost : 8747 Million NRs

•Specific energy cost: 4.5Rs/kWh

•ROE: 14% at 70:30

29

• Approximately 10 km of access road need to be

constructed and some portion of the road need to

be upgraded

• Short Transmission line of about 11.5 km length.

UPPER MODI HEP Cascade Development of Upper Modi “A” HEP –

No Headworks

NEA obtained Survey License as agreed on Joint

Development Agreement (JDA) between NEA and K-

Water for the Cascade Development

Feasibility Study in 2014

Headwork is located at Sayauli Bazar and Powerhouse is

located near Birethanti Bazar

30

• Gross Head = 133 m

• Capacity =18 MW

• Energy : 95.7 GWh

Transmission line : 5 km

•Cost : 35.45 Mill US$

Andhikhola Storage Hydroelectric Project

Syangja District,

Western Development Region

Located : Syangja District , Western Development Region.

Based on feasibility study (1998 A.D)

Installed capacity 180 MW.

Dam height 157 m

Project cost : 374 million US$.

Unit cost per Kilowatt : 2077.78 US $.

Annual energy generation : 693 GWh.

Gross Head: 307 m gross head.

Tunnel Length:3395 m long

Nearby the urban centre, short access road and short transmission line

Obtained the license of the project on B.S 2071/06/02

31

Project Layout

Option 1-H1P1

Option 2-H1P2

Layout of the project 32

Powerhouse (option I)

Kaligandaki “A”

HEP Headworks

Kaligandaki “A” HEP

Powerhouse

Dam Axis of

Andhikhola

Storage HEP

Powerhouse (option II)

Andhikhola HEP

(9.1 MW)

Headworks

FINAL WORDS

Reservoir project to firm up power, make the excess energy

marketable and to absorb the consequences of climate change

Need to invest about 20 billion US$ in the next ten years for

generation projects only to meet the national objective of

generating 10,000 MW in the decade..

Different modalities of development of hydropower are required to

be encouraged.