FNCCI to start rural hydropower projects

Himalayan News Service Kathmandu, April 5:

The Federation of Nepal Chambers of Commerce and Industry (FNCCI) will start rural hydropower projects in 45 districts. The umbrella organisation of Nepali private entrepreneurs is taking this step after Norway consented to provide technical expertise.

“Norwegian development program (NORAD) and Norwegian development fund (NORFund) are showing their interest in micro-hydropower,” said FNCCI president Kush Kumar Joshi, who acompanied Prime Minister Pushpa Kamal Dahal ‘Prachanda” to Norway and Finland. Nepal is suffering an acute shortage of electricity these days and micro-hydropower can be a solution. The present power cuts stretch to 16 hours a day.

Earlier, FNCCI and Association of District Development Committee Nepal (ADDCN) had designed an micro-hydropower project in the rural areas to end load shedding. “If we start micro-hydropower today, we can produce 100 MW to 150 MW in two years,” said Gyanendra Lal Pradhanang, chief of Hydropower Development Forum (HDF) of FNCCI.

FNCCI along with ACCDN had planned to start 1 MW to 5 MW capacity projects in 45 districts using local funding. Nepal has the civil, technical and mechanical capacity to develop such projects. “Production of five MW hydro-electricity needs Rs 1 billion which we can collect in the respective district,” said Pradhanang. The project aims to mobilise local finance and provide electricity to nearly 300 village development committees.

“Norway has consented to help in the technical part, mainly in full utility,” Pradhanang clarified. He added that 126 MW electricity can be generated if the existing power plants are utilised to full capacity. Nepal is currently facing a shortage of 280 MW in winter and 80 MW in the rainy season. HDF is preparing to send a technical proposal to NORFund through the Norwegian embassy in Nepal. “We want their expertise in this sector,” said Pradhanang adding that this process would be completed in two weeks.

The FNCCI team did not found windmills feasible for Nepal. “There is no adequate study of this sector,” said Joshi. According to a preliminary study of APG, a wind-power company, Nepal has the capacity for generating 3000 MW electricity from wind-power. “It is costly too,” Joshi said. He pointed out two places — Batase Danda of Palpa and Nagarkot of Bhaktapur — where windmills can be set up.

“If there is the political will and support we can generate at least 100 MW electricity through rural micro-hydropower projects in two years,” said Pradhanang. This would also generate opportunities for investment and employment in rural areas and help reduce poverty, he said. FNCCI is planning to develop these rural hydropower projects under the public private partnership model.

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