Nepal Electricity Authority (NEA) has decided to prioritise the construction of pump storage hydropower projects to meet the daily fluctuations in electricity demand and the country's energy security.

The Project Development Department under the Authority had identified 156 pump storage projects across the country.

Out of these, 33 projects of 42,000 MW are under screening and ranking.

A feasibility study is being conducted after obtaining a survey license for a 332 MW pump storage project in Syarpu Lake located in Rukum (West), according to the NEA.

Similarly, the 670 MW Dudhkoshi Reservoir Hydropower Project is also being studied for the construction of 200 MW pump storage project.

A feasibility study is being conducted for the construction of the Hulingtar-Dukim Pump Storage Project of about 1,596 MW in the Hugdi and Mowa rivers in Benighat Rorang Rural Municipalities of Dhading and Ichchhakmana Rural Municipalities of Chitwan.

The Project Development Department of NEA is currently conducting a DEX study of the project.

Two reservoirs will be constructed by building dams of about 45 and 103m in the Hugdi (upper area) and Mowa (lower area) rivers, respectively, said the NEA.

The power plant will be located in the Mowa river.

The electricity will be generated using the water stored in the Hugdi river reservoir. After electricity generation, the water stored in the Mowa river (lower reservoir) will be pumped and released back into the Hugdi river (upper reservoir).

The design proposal has been made so that the project can be operated at full capacity for 6 hours during peak electricity demand.

In pumped storage projects, water is pumped up the river during off-peak or when the energy price is lowest and stored in a reservoir built upstream. In this way, the stored water is used to generate electricity during peak or high-price periods.

The pumped storage projects are considered important for electricity system stability, peak demand and management of surplus energy and energy security.

Through the utilisation of pumped and stored water during off-peak periods, electricity can be generated during peak periods and consumed internally, and the surplus energy can be sold to India at a higher price during peak demand time.

A team, including Managing Director of the NEA Kul Man Ghising inspected the Hulingtar-Dukim Pumped Storage Project in Dhading and Chitwan on Saturday and received the situation in the area.

Ghising said that the Hulingtar-Dukim project is attractive for construction compared to other projects due to its geographical location, environmental and social conditions, availability of transmission lines for the flow of generated electricity and proximity to the power load centre.

Stating that the project will be built at about 510 MW in the first phase and can be gradually increased to full capacity, he said, "The process of obtaining a survey permit will be taken forward immediately by prioritising the construction of this project."

The project will generate about 3.36 billion units of energy annually, said the NEA.

The cost of the project per megawatt is estimated to be about USD 587,000 (about Rs. 77.5 million).