The 4-MW Puwa Khola 1 small hydropower plant on the Puwa Khola River located near the towns of Shanti Danda and Barbote in the Eastern Development Region of Nepal, has begun commercial operations.
The US$11 million project financed in part by Sidhhartha Bank and Citizen Bank, and licensed by Nepal Electricity Authority (NEA), was developed by Puwa Khola 1 Hydropower Private Ltd.
According to Andritz Hydro, which designed, built and installed the project’s two horizontal 2-MW Francis turbines, the run-of-river scheme has an operating head of 108 meters. The project also includes a 6.5-km-long transmission line that will deliver electricity produced to Nepal’s national grid at Godak substation.
The Katmandu Tribune reported today that with the construction of this project, there are eight hydropower projects in Ilam district that have a total combined installed capacity of about 75 MW.
According to the 2016 report, “A Review of Hydropower Projects in Nepal,” the country’s total power generation is around 900 MW. NEA generates 539 MW – 485 MW from hydro and 54 MW from liquid fuel. Independent power producers generate 361 MW from hydro.
As Nepal continues the process of repairing hydro facilities damaged during earthquakes during the past two years, investment in new hydro continues.
In August, it was reported that the Dolma Impact Fund invested $3.2 million in equity investment in the 28.1-MW Lower Likhu hydropower project being developed by Swet Ganga Hydropower and Construction Public Ltd.
In June, the Asian Infrastructure Investment Bank assured Nepal it will finance two projects, each costing about $156 million through soft loans, according to the government of Nepal’s Finance Minister, Gyanendra Bahadur Karki.