Nepal's Massive Hydropower Potential to Feed India and Bangladesh Grids

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Both India and Bangladesh are looking to tap into the major hydropower potential of their Himalayan neighbor Nepal, which is estimated to have a total hydropower potential of 83,000 megawatts (MW), of which 42,000 MW is economically exploitable.

India's SJVN Limited (Shimla, Himachal Pradesh) will participate in the 900-MW Arun III project in Nepal and lay a 315-kilometer, $166 million transmission line that will enable 78.1% of the power produced by the project to flow to India with the 29.1% balance provided free to Nepal. The transmission line route will run 210 kilometers in Nepal and 105 kilometers in India.

The project, which is sited 657 kilometers from the capital Katmandu, is scheduled for completion in 2017-18 with an estimated investment of more than $1 billion. A detailed report has been submitted to India's Central Electricity Authority (CEA) for approval in 2011.

SJVN has also made successful moves into Nepal on three 900-MW hydro projects. The company has submitted detailed reports to the CEA on two 600-MW projects on the Wangchu and Kholongchu rivers in neighboring Bhutan.

Bangladesh is seeking to import 1,000 MW of Nepalese electrical power from the 3,500 MW Sapt-kosi High Dam, which lies 100 kilometers from the Thakurganon district in Bangladesh.

At a meeting between the Nepal's prime minister, Dr. Baburam Bhattari, and Bangladesh's prime minister, Sheikh Hasina, the latter said that Bangladesh was hoping to import 10,000 MW of electricity in the next five to seven years by investing in joint venture projects, equity sharing or direct purchase from Nepal.

For related story, see August 16, 2011, article - ABD's $1.5 Billion South Asia Connectivity Plan to Boost Power Transmission.

At the meeting, it was agreed that projects could be taken up to harness hydropower and water resources on a sub-regional or regional basis. Hasina said that Bangladesh, India and Nepal might jointly construct reservoirs in Nepal for augmentation of the dry season flow of the Ganges.

For related information, see March 28, 2011, article - Nepal Opens Investor Opportunities in Five-Year Power Crisis Crash.

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