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Sudurpaschim province, which has three major river basins - Mahakali, Seti and Karnali - utilizes less than one percent of the potential electricity generation capacity.

Speaking at an interaction titled ‘Possibilities and Challenges of Hydropower Project Development in the Far-West’ organized in Kathmandu on Wednesday by the Independent Power Producers’ Association, Nepal (IPPAN), its President Ganesh Karki said that only 176 megawatts of electricity is currently being generated in the Far-West, which has a potential of at least 18,149 megawatts. “Even if we take the country’s total hydropower potential of 83,000 megawatts as a base, the Far-West alone accounts for 20 percent of that capacity,” Karki said, adding that the potential of the region has not been utilized due to the state’s failure to build transmission lines and its reluctance to allow the private sector to construct them.

Energy entrepreneurs have demanded that, not only in the Far-West but across the country, the government should grant at least 50-year licenses for hydropower projects and make the procedures of the Ministry of Forests simpler and faster. Karki said that the current situation, where files have to move across 14 ministries and more than 30 departments, should be ended and services should be provided through a one-door system.

IPPAN Senior Vice President Mohan Kumar Dangi said that the Far-West has lagged abnormally behind in hydropower development.

Proper utilisation of water resources alone can make Nepal prosperous. Electricity generated in Darchula could be sold in Dharchula, India, just a few kilometers away, by constructing a short transmission line. Although hydropower generation in the Far-West is attractive from all perspectives, it has lagged behind due to difficult geography and the lack of transmission infrastructure, Dangi said.

Nepal’s electricity generation, which stood at 250 megawatts in 1994, has now reached 4,100 megawatts after the entry of the private sector. Dangi said that if the private sector is also allowed in transmission and trade, then within the next ten years it could achieve a similar leap in building transmission lines and exporting electricity as it has in generation.

IPPAN Deputy General Secretary Prakash Dulal spoke about how work proceeds through the Ministry of Forests and the extent of procedural complications involved. Presenting a paper, IPPAN executive member Suman Joshi said that among 61 projects with a capacity of 5,900 megawatts in the Far-West that are in various stages of study, 11 projects with a total capacity of 1,117 megawatts could begin construction immediately if transmission lines are ensured.

Among the districts with the highest potential in the Far-West, Bajura has a capacity of 2,188 megawatts, Bajhang 1,935 megawatts, and Achham 1,348 megawatts.

According to IPPAN, the hydropower sector contributes around Rs 4.5 billion annually in royalties, has generated employment for more than 350,000 people, has attracted investment of Rs 1.3 trillion, built 3,700 kilometers of roads across the country, constructed 160 health centers, 107 drinking water projects and 55 irrigation projects.

There is currently only one transmission line in operation in the Far-West to transmit electricity from both private and government projects. Apart from the 132 kV transmission line from Balach in Darchula to Attariya in Kailali, no other transmission lines have even begun construction.

Sagar Shrestha, Chief Executive Officer of the Rastriya Prasaran tatha Grid Company (RPGCL), said that although there are plans to build Nepal’s largest electricity hub in the Far-West, there is currently a lack of budget for transmission line construction in the region.

Two 400 kV transmission lines are planned - one from Humla through Bajhang to Dododhara in Kailali, and another from West Seti (Bajhang), Doti and Dadeldhura to Dododhara in Kailali. An inter-country transmission line is also under construction to bring electricity from projects such as Phukot Karnali, Upper Karnali, West Seti and SR6 to Dododhara and connect it to Bareilly in India, Shrestha said.

A total investment of Rs 130 billion is required for this, posing a challenge in resource management. The 400 kV transmission lines in this region can transmit 2,500/2,500 megawatts of electricity. Among them, 600 megawatts capacity has already been booked at West Seti Dododhara.

Shrestha complained that although the company has to undertake projects worth billions, the government has allocated only Rs 180 million in the current fiscal year. He suggested that to accelerate construction, provincial and local governments should also invest.

Former Secretary of the Government of Nepal Anup Kumar Upadhyay recalled that after realizing that hydropower development was not possible without private sector investment, the Electricity Act was introduced to bring in private participation. Now, he said, it has become clear that private sector involvement is also necessary in transmission and trade, and the existing Electricity Act can be amended to allow this.

At a time when there is a severe shortage of transmission lines, Upadhyay said the government should not insist on holding 51 percent shares and limiting the private sector to 49 percent, but should fully open the sector to private investment.

House of Representatives member Harimohan Bhandari, elected from Baitadi-1, said that development of the energy sector is the first condition for improving the country’s economy. Similarly, Janak Raj Giri, elected from Bajura-1, said that the government should take initiative to move forward the 1,902 megawatt Phukot Karnali project in the coming fiscal year. The new government has set a target of generating 30,000 megawatts of electricity within the next ten years.

By Sajana Timalsina