Kathmandu- The private sector, once focused primarily on small hydropower projects of up to 10 MW, is now transitioning to mega hydropower ventures. This shift has been fueled by Nepal Rastra Bank's mandatory regulation requiring the banking and financial sector to invest in hydropower projects, enabling private investors to scale up their investments.

One notable example is Upper Tamor Energy, which has secured financial arrangements to begin construction on a 285 MW project with a total investment exceeding Rs  55 billion. This is currently the largest hydropower project in Nepal to enter the construction phase.

In addition to Upper Tamor Energy, several other Nepali private companies are engaged in the development of over three dozen large-scale projects, with capacities ranging from 70 MW to 600 MW. Collectively, these 40 companies are preparing to generate 5,917 MW of electricity, with investments exceeding Rs 1.65 trillion.

'The private sector has gained valuable experience from small-scale projects over the years. By assessing risks and financial opportunities, we have built the capacity to take on larger projects,' said Pushpa Jyoti Dhungana, Chairman of Upper Tamor Energy. 'It has taken us two decades to move from building a 1 MW project to constructing a 285 MW project. This is a significant achievement.'

Despite this progress, Dhungana highlighted persistent challenges in the sector, including land acquisition issues, delays in obtaining tree-cutting permits, and local opposition, which have left many projects in limbo. He lamented the prolonged government approval process, often taking three to five years, which increases project costs significantly.

'If the government provides better facilitation, the private sector is ready to invest in even larger hydropower projects,' Dhungana added.

The private sector is committed to completing construction within three to five years once projects begin.

 

Notable ongoing initiatives include:

Upper Tamor Energy: 285 MW
Samriddhi Energy: 216 MW
Sahas Urja: 86 MW
Blue Energy: 100 MW
Nepal Portfolio Energy: 110 MW
Urja Developers: 111 MW and 166 MW
Sanima Middle Tamor Hydro: 73 MW
Sasasungi Power Limited: 78 MW
Dudhkoshi Hydropower: 70 MW
Mewa Developers: 73.5 MW

 

Other notable projects under construction include:

Pan Himalaya Energy: 77 MW
Nilgiri Khola: 71 MW
Dugar Brothers Hydropower: 140 MW
Gandaki Energy: 152 MW
Himtal Hydropower: 327 MW
Tapovan Hydropower: 72 MW
Abhiyan Power: 80 MW
MA Power: 100 MW
Spark Hydroelectric: 128 MW
Butwal Power: 140 MW

 

Several companies are also in the process of initiating new projects:

Crystal Power: 166 MW
Times Energy: 341 MW
Annapurna Vidyut Bikas: 85 MW
Himtal Hydropower: 600 MW
MPK Energy: 132 MW
Union Hydropower: 72 MW
Ruru Hydropower: 235 MW and a proposed 335 MW project