Cumulative Impact Assessment (CIA), as a tool is a holistic approach to study,assess, monitor and manage the Valued Engineering Components (VECs), in a specific and defined manner. It is imperative to use in the entire basin approach for Hydropower development in Nepal. More information about this approach can be made available by the Trainee (representatives from Nepal)

1. Presentation Team:
1.Abhushan Neupane/AG Power
2.Bharat Mani Pandey/ UT-3A(NEA)
3.Surendra Dev Bhattq/Pahadi Hydro
4.Umesh Pathak/ Sanjen HEP
COUNTRY PRESENTATION
STATUS OF HYDROPOWER IN NEPAL

2. Glance of Hydropower in Nepal
First Hydropower in Nepal: 1911 AD (500 Kw Pharping HEP)
Theoretical Potential: 83,000 MW
Technically Feasible: 44,000 MW
Economically Feasible: 43,000 MW
Electricity Access percentage: ~60%
Current Generation: ~ 800 MW (Mostly RoR type)
Largest Operation Hydropower: 144 MW (Kaligandaki A)
Construction Ongoing: More than 2500 MW
Largest Construction Ongoing: 456 MW (Upper Tamakoshi)
Transmission Loss percentage: ~25%
2
UTK-456MW
Sanjen(Upper) -14.8 MW

3. Power Map of Nepal
3

4. Contents
Acts/Policy/Guidelines
Energy Status
Opportunities
Challenges
4

5. Acts/Policy/Guidelines
5

6. Main Legislation Governing Hydropower
Water Resources Act 1992 & Regulation 1993
• Use of water for hydropower shall have priority over the use of water for cottage industries,
navigation and recreation but not over the use of water for drinking and domestic use, irrigation
or agriculture
Electricity Act 1992 & Regulation 1993
• Deal with management of electricity in Nepal, including the survey, generation and distribution of
electricity
• Regulates the electricity sector by a system of licensing
6

7. Main Legislation Governing Hydropower Contd..
Hydropower Development Policy 2001
• Objectives of HP-2001
• Generate electricity at low cost;
• Provide reliable and quality electricity at a reasonable price;
• Combine electrification with the economic activities;
• Extend rural electrification; and
• Develop hydropower as an export commodity
• Key Policy Provisions (HP-2001)
• BOOT model
• In case of multipurpose projects, GoN may participate
• Environment- 10% d/s release (min)
• Facilitate property acquisition
7

8. Main Legislation Governing Hydropower Contd..
Hydropower Development Policy 2001
• Terms of License
• Survey License for 5 years
• Generation License
• Internal consumption 35 years
• Export Oriented 30 years
• In case of reservoir 5 years extension on the basis of construction period
• Captive Plant as it remains in operation
Other Important aspects of policy
• Transfer of Projects
• Every hydropower project has to be transferred to the government, free of costs,
after the completion of license period
8

9. Authorities for Hydropower Development
Major Implementing Authorities:
• Ministry Of Energy (MoE)
• Department of Electricity Development (DOED)
• Nepal Electricity Authority (NEA)
Other Regulating Authorities:
 Department of Environment (DoE)
 Ministry of Forest
9

10. Other Relevant Legislation
Environment Protection Act, 1996 (2053 B.S.)
Forest Act, 1993 (2049 B.S.)
National Parks and Wildlife Conservation Act, 1973 (2029 B.S.)
Foreign Investment and Technology Transfer Act, 1992 (2049 B.S.)
Local Self-Governance Act, 1999 (2055 B.S.)
Industrial Enterprises Act, 1992 (2049 B.S.)
Land Acquisition Act, 1977 (2034 B.S.)
10

11. Guideline and Action Plan
Action plan and concept paper for Energy Emergency Eradication decade , 2016 has
paved the ways for FDI entrance in Nepal
 Government Guarantees for development
 Foreign Currency denominated PPAs (up to Loan Repayment or 10 years)
 PPAs based on Take or Pay basis (Dry Energy >>30% )
 No Hydrology risk up to 10 MW
 Provision for Hedge funds
Government has recently launched program “Nepal ko pani: Janta ko Lagani”
(Water of Nepal: Investment from People)
Planning for Institutional reform
 Unbundling of Nepal Electricity Authority (NEA)
 Separate Generation Company
 New Power Trade Company
11

12. Environmental Requirements for HPP development
National Requirements (Environment Protection Act/ Rules, 1997):
 IEE for Generation (1-50 MW, <5 Ha forest area)
 EIA for Generation (more than 50 MW, > 5 Ha forest area)
 IEE for Transmission line >=132 KV
 Outdoor substations tapping from 220Kv Substations and Transmission line >>EIA
 Construction of HPP displacing >100 persons need EIA
 Protected areas, Inter basin transfer etc need EIA
 Construction of Multipurpose Reservoirs need EIA
Donors requirements (FDIs and Development Loans/ Grants):
 IFC performance Standards
 ADB safeguards
 Other donors/lender E&S requirements
12

13. Energy Status
13

14. Status
Power Situation (Daily Load Variation During Winter Season)
• Daily Peak demand: 1385 MW
• Supply at the time of peak demand: 750 MW
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Storage
Source: NEA,2016

15. Status Contd…
15
Total Annual Energy Available & Peak Demand in the System
Source: NEA,2016

16. Pattern of Seasonal Variation in Demand (Load) and Generation
STATUS CONTD….
Source: NEA,2015

17. Status Contd…
17
NEA Load Forecast
Source: NEA,2015

18. 18

19. Hydropower Projects with FDI
Khimti 60 MW (Operation)
• Owner: Butwal Power Company Limited, Norwegian companies - Statkraft SF,
Kværner Energy a.s. (now G.E. Hydro Norway) and ABB Energi a.s. (now ABB
ALSTOM a.s.)
• Construction period 1996-2000
• License for generation for 50 years (Electricity Act 1992)
Upper Bhote Koshi Hydroelectric Project (45MW) (operation)
• Owners: Originally majority share of Panda Energy
• Construction period: 1997-2001
• 40-year license to build, own, operate and transfer
Upper Trishuli I (216 MW) ( Planned)
Kabeli A (37 MW) (Under Construction)
19

20. Status Contd…
Major Hydropower Under Operation
• Other Small Hydro 14,244
20
Other sources of Electricity under NEA*
*NEA: Nepal Electricity Authority
**Data based on Fiscal year 2014/15

21. Status Contd…
 Major Planned and Under Construction Hydropower Own By NEA
21

22. Opportunities
22

23. Opportunity
Snow capped Himalayas are Water Towers for Asia
6,000 rivers including rivulets and tributaries totaling
about 45,000 km in length
 The potential is estimated at 83,000 MW, of which half i.e.
43,000 MW is considered to be technically and economically
viable.
Export possibility of Energy to India & Bangladesh
Lots of projects under FDI in Project Finance Modality are
coming to Nepal

24. Challenges
24

25. Challenges
During Planning & Design
Posted rates (Feed in tariff) are unreasonable for development
Foreign currency fluctuations
Lack of Technical manpower & resources
Lack of One Window policy
Numbers of Protection Areas
During Construction
Transmission Lines
Land Compensation issue
Social and political instability
• During Operation
Sediment Related Problems
GLOF/Climate change/LDLOF
Handing over after 35 yrs is unclear 25

26. Case Project
Sanjen HEP-42.5MW
Sanjen(Upper) HEP-14.8 MW
26

27. 27

29. Sanjen (Upper) HEP Sanjen HEP
Capacity 14.8 MW 42.5 MW
Project Type Peaking ROR Peaking ROR
PPA October 10, 2011 December 5, 2011
Transmission Line 5 km, 132kV 2 km, 132 kV
Design Discharge 11.07 m
3
/s 11.57 m
3
/s
Gross Head 161.3m 442 m
Contract Energy
Dry Season 10.583 GWh 34.278 GWh
Wet Season 71.856 GWh 207.587 GWh
Annual Energy 82.439 GWh 241.865 GWh
Total Energy from Both Projects: 324.30 GWh per Annum

30. Sanjen (Upper) HEP Sanjen HEP
Diversion Weir Length-14 m Chupchung Khola feeder
Desander 60m x 8m x9m
HRT 1376m x3.5m x3.75m 3630m x 3.5m x 3.75 m
Surge Shaft Dia 6m, H 40m Dia 6m, H 40 m
Penstock Pipe 478 m (l), 1.1~2.5 m dia. 1020 m (l), 1.06 ~ 2.5 m (dia)
Powerhouse Surface PH, 45 m x 14m x 20m Surface PH, 58 m x 15m x 25m
Tailrace Canal 28m x3m x7.5 m 27m x3m x7.5 m
Turbine 3 units Francis 3 units Pelton

31. 31
Construction Progress: >50%
Expected Completion Target: 2018

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34. Thank You !!!