Hydropower is main source of electricity in Nepal. Nepal’s vast water resource is said to be largest after Brazil. But, lack of clear and effective policies, absence of investment friendly environment and political instability have made hydropower as one of the least developed sector. This has resulted in the long-standing energy crisis commonly known as the “load shedding”. Nepal is producing only about 600 megawatts electricity a year which is met by hydel energy and power produced by multi-fuel plants. 

 

But, there are some clear signs that things are about to change as construction of big projects showed significant progress. The Upper Tamakoshi is the biggest hydropower project installed capacity of which is 456 MW. According to project officials,fifty percent works of Upper Tamakoshi have been completed. The project being constructed under run-of-river model is expected completed within the fiscal year 2015/16. Load shedding hours is expected to come down to four hours a day after the project starts generating electricity. The Upper Tamakoshi is being developed under domestic investment. 

 

Middle Bhotekoshi is another major hydel project under construction in Sindhupalchowk district. The 102 MW project has already completed the construction of 250 meter long adit tunnel and paid Rs 33.2 million to locals for land acquisition. The project will be completed in 2016 and would cost Rs 14 billion, according to initial estimates. Similarly, the 45 MW Kulekhani 3 project has also gained momentum after remaining sluggish for four years. Started in 2008, the project is now 52 per cent complete. It is the only storage type hydel project under construction for the time being. According to officials, if the works moving ahead at a faster pace, the project will be starting commercial production by December, 2014. 

 

The other major hydel projects under construction are Kankai (60 MW), Chamelia (30 MW), Sanjen (42.5 MW), Upper Sanjen (16.4 MW), Rahught (32 MW) and Trishuli 3 ‘A’ (60 MW). Most of these projects are expected to complete by 2017. If these projects actually complete by then, not only the ongoing power shortage problem will be solved, it also speed up private sector investment in this with these projects serving as models. 

 

Along with these projects the 750 MW West Seti is set to start and the proposed 140 MW Tanhahun hydropower project has also received positive signals from the donors.

 

• Upper Tamakoshi – 556 MW
• Upper Marsyngdi – 50 MW
• Trishuli 3A – 60 MW
• Upper Modi – 42 MW
• Chameliya - 30 mw
• Rahughat - 32 MW
• Upper Mai – 22 MW
• Kulekhani 3 - 14 MW
• Kabeli – 37 MW
• Rasuwagadi –110 MW
• Middle Bhotekoshi – 102 MW
• Sanjen– 46 MW