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  Gandaki: The Future Hub of Hydroelectric Power

In Gandaki, 14 projects with a total capacity of 898.913 MW have obtained survey licenses, while 22 projects with a total capacity of 1,623.87 MW are awaiting licenses.

Recently, Gandaki Province has been emerging as a hub for hydropower. If we delve into the statistics, this province ranks second in contributing to illuminating the nation. A total of 996 megawatts of electricity produced in Gandaki Province has been connected to the national transmission line, which is the highest after Bagmati.

Although Gandaki Province is leading in electricity production, its consumption is significantly low, according to the Nepal Electricity Authority’s statistics. The authority states that Gandaki Province consumes only 120 megawatts of electricity. Gandaki Province contributes 29.32 percent to the national transmission line.

In Gandaki Province, only 99.40 percent of electrification has been achieved. Among its districts, full electrification has been completed only in Parbat, Syangja, Kaski, and Tanahun. According to the Electrification Statistics 2081, prepared through a detailed study of all wards in the country’s 753 local levels, Nawalpur has achieved 99.36 percent electrification, Baglung 99.96 percent, Myagdi 99.70 percent, Mustang 99.98 percent, Lamjung 99.99 percent, and Gorkha 95.64 percent. Manang has the lowest electrification rate in Gandaki Province, at just 87.81 percent, according to the authority’s data.

In Gandaki Province, the Chumanubri Rural Municipality and Narfu Rural Municipality have yet to be connected to the national transmission line. These areas rely on electricity generated from small hydropower projects, solar energy, and other alternative sources outside the national grid.

In Gandaki Province, dozens of hydropower projects have already been operational on rivers such as Kaligandaki, Budhigandaki, Marshyangdi, Madi, Seti, Daraudi, Trishuli, and Modi, among others, with many more under construction. Energy promoters state that the ease of road infrastructure and transmission lines has increased the potential for hydropower projects and accelerated the construction process in Gandaki.

Suman Joshi, the Executive Director of White Lotus Power Company, stated that many hydropower projects in Lamjung, Myagdi, Manang, and Gorkha under Gandaki Province are either under construction or in the study phase. “Compared to other provinces, working in Gandaki Province is easier, as the higher literacy rate here reduces many challenges,” she said.

The company is currently constructing the 6.82 MW capacity Hidi Khola Hydropower Project in Lamjung. She also highlighted that Gandaki Province has significant potential for hydropower. “In terms of rivers, Karnali Province has greater potential, but due to the lack of infrastructure development such as roads and transmission lines, Karnali’s hydropower potential remains confined to paper,” she said. She further mentioned that 20 percent of the country’s total hydropower production capacity lies in Gandaki Province alone.

The 25 MW Seti River hydropower project, promoted by Vision Lumbini, is already operational in Gandaki Province. Similarly, the 86 MW Landruk Modi and the 24 MW Bajra Madi hydropower projects are under construction, according to the company’s Executive Chairman, Jagat Pokharel.

“Gradually, Gandaki Province will become a hydropower hub,” he said. “Districts like Kaligandaki, Lamjung, Kaski, Myagdi, and Parbat in Gandaki have numerous hydropower projects.” He believes that the increase in hydropower projects in Gandaki is due to the development of road infrastructure and efficient transmission lines. “The hydrology is excellent, and the transmission lines are well-prepared to flow electricity after production,” Pokharel said. “The local people are also eager to invest.” He noted that projects face fewer challenges during construction, are completed on time, and yield good returns on investment.

The 135 MW Manang Marsyangdi hydropower project, promoted by Butwal Power Company, is under construction. The company has also been awarded the 139.2 MW Lower Manang Marsyangdi, the 327 MW Upper Marsyangdi, and the 7.9 MW Chino Khola hydropower projects. The 54 MW Super Dordi hydropower project, promoted by People’s Hydropower Company, is already operational, while the 57 MW Himchuli Dordi hydropower project is under construction.

The government has stated that the 1,200 MW Budhigandaki Hydropower Project, which falls in both Gandaki and Bagmati provinces, will be built with domestic investment. For the Budhigandaki Hydropower Project, the government has already spent around 43 billion rupees on land acquisition and compensation. The Budhigandaki Hydropower Company Limited has estimated the project cost at 310.47 billion rupees with the provision of the viability gap funding (VGF), while without VGF, the total construction cost is estimated at 398.02 billion rupees.

In the 23 years since the operation of the 144 MW Kaligandaki ‘A’ reservoir-based hydropower project, 996 MW of electricity has been connected to the national transmission line from Gandaki Province alone. The 140 MW reservoir-based hydropower project, awarded to Tanahun Hydropower Limited, a subsidiary of the Nepal Electricity Authority, is currently under construction.

The company has reported that work on the hydropower project is being carried out in three packages, with overall physical progress at 65 percent. Tanahun Hydropower Limited has also completed the Detailed Project Report (DPR) for the 126 MW Lower Seti (Tanahun) reservoir-based hydropower project. The company mentioned that the Power Purchase Agreement (PPA) and Environmental Impact Assessment (EIA) report approvals are in process. Discussions are ongoing with international organizations to secure investment for the 126 MW Lower Seti project.

The Independent Power Producers’ Association (IPPAN) has stated that there is a potential of 14,981 MW capacity from river flow-based hydropower projects in Gandaki Province alone. IPPAN also claims that the Gandaki Basin holds the potential for 15,911 MW of reservoir-based hydropower projects.

A study conducted by the Secretariat of the Water and Energy Commission in 2019 revealed that Nepal’s hydropower capacity based on the Karnali, Koshi, and Gandaki basins is 72,544 MW, with Gandaki Province alone contributing 21 percent to the country’s total potential. The hydropower capacity of Gandaki Province is 15,000 MW.

According to the Department of Electricity Development, in Gandaki Province alone, 14 projects with a combined capacity of 898.913 MW have obtained survey licenses. Additionally, 22 projects totaling 1,623.87 MW have applied for survey licenses. Eighty-five projects with a combined capacity of 3,174 MW have received construction permits, while 22 projects totaling 1,646.94 MW are in the process of obtaining construction permits. Ten projects with a combined capacity of 1,688.48 MW are currently under study. Within Gandaki Province, four projects with a combined capacity of 1,266.18 MW have completed their studies.

Krishna Acharya, the former chairman of Ippan, mentioned that large-scale projects are being constructed in rivers like Budhi Gandaki and Kali Gandaki. The government has set a target to produce 28,500 MW of electricity by the year 2035, with a significant contribution expected from Gandaki Province. “The private sector is also capable of developing projects up to 500 MW. However, once these projects are completed, the construction of transmission, distribution, and substations must also happen on time; otherwise, it will not be feasible,” he said.

Nepal is currently selling 941 MW of electricity to India and 40 MW to Bangladesh during the monsoon season. According to the agreement, an additional 10% of electricity can be exported. The government has set a target to export 10,000 MW of electricity to India and 5,000 MW to Bangladesh by the year 2035. There is no doubt that Gandaki Province will make a significant contribution to this.

The annual economic activity report of Gandaki Province for the fiscal year 080/081 mentions that, in addition to the 1,200 MW Budhi Gandaki Hydroelectric Project and the 140 MW Tanahun Hydroelectric Project, over 4,100 MW of projects are under construction in Gandaki. The report also indicates the possibility of constructing other projects.

The report states, “Since there is abundant potential for hydroelectric power production, there is also significant potential for employment in this province. The operation of various national and provincial pride projects has increased the possibilities for employment.”

The report states, “Since there is abundant potential for hydroelectric power production, there is also significant potential for employment in this province. The operation of various national and provincial pride projects has increased the possibilities for employment.”

Source: Kantipur

[ 22 January, 2025 / nepalenergyforum.com ]   
 
 
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