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Final Report

Final Report

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Published by: MAND33P on Dec 12, 2010
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08/20/2013

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1
CHAPTER 1
INTRODUCTION
 
1.1 BACKGROUND
 
1.1.1 Reasons for focusing on Hydropower Projects
The demand of energy is increasing day by day and the supply is limited, so it haspronounced negative impacts such as depletion of natural resources, environmentaldegradation, etc. This causes depletion in non-renewable and exhaustive sources of energy, which may invite energy crisis in future. Also, it is essential to meet the conceptof sustainable development .So, energy consumers should keen on using of nonexhaustive and renewable sources of energy. Hydropower, one of the most reliable andcommon renewable sources of energy is abundantly available in the hilly regions of Nepal. Again, hydraulic conveyance circuit can be beneficial for multipurpose use(irrigation, water supply etc.). Hydropower production does not consume water, so it isconsidered as renewable source of energy. Consumption of this energy is environmentalfriendly because it uses water as fuel and no harmful byproducts are produced. It does notemit green house gases that cause ozone layer depletion and global warming.
 
Because of abundant water resources and potential hydropower sites available, there ishuge possibility of hydropower production. Large projects involve huge amount of fundsand the development period is large hence activities regarding development of SmallHydropower Projects are accelerating in these days which is technically, financially andenvironmentally sustainable at the present scenario.
1.1.2 History of Hydropower Development
Use of energy generated from water has been started since the very beginning of humancivilization. There are evidences of it in Greek and Roman civilization. Though, MichaelFaraday demonstrated that mechanical energy could be converted into electrical energyand vice versa, in 1831, development and use of electrical energy began gainingmomentum after 1890. By 1900, hydropower plants had become a common source of obtaining electricity. In the early 19
th
century, progress in the hydropower developmentwas slow because of less efficiency in power transmission over the long distance. The
 
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pace of hydropower development increased dramatically after 1930. United States made apolicy to invest in water based projects to create jobs for unemployed and to stimulateeconomic recovery in the country when it faced severe economic hardship in 1929. In theformer Soviet Union, hydropower was considered synonymous with industrialization andeconomic prosperity after 1920.After 2
nd
world war, leaders of African and Asian nations has replicated the western USmodel to meet energy and water needs of their own countries and many large scalehydropower projects were built in India, Pakistan and Egypt between 1950 and 1980.None of the projects in US, former Soviet Union and India had the objective of exportingenergy to its neighboring to earn revenue for the country. In recent decades, the conceptof production of electrical energy has been changed. Now, it has been traded between twoor more nations after agreement upon certain terms of trade. Exporting electricity to aneighboring country to earn revenue for the government is one of the stated objectives of developing large scale hydropower projects in Nepal.
1.1.3 Hydropower development in Nepal
Nepal entered into hydropower development field almost a century ago. The first in thisregion was the construction of 500KW Pharping hydropower project, commissioned in1911 AD followed by Morang Hydro 1918 and Sundarijal Hydro in late thirties. Theplanned development approach was initiated in late fifties with the First Five Year Plan.In about a century only 450MW has been developed through government agency. On theother hand after liberation (1990), IPPs have developed about 125MW in less than adecade.First approach in hydropower development in Nepal was the power generation from theconstruction of Pharping Hydropower station (500 KW) in 1911. But the progressivedevelopment was gradual only after the Sundarijal (600 KW) and Panauti (2400 KW)Hydropower Stations came into operation after long interval of 23 and 29 years.The completion of Dhankuta Hydropower station (240 KW) in 1971 was regarded as thebench mark of small hydel development of Nepal. The establishment of small hydeldevelopment board in 1975 was another milestone under which several small hydroschemes such as Jhupra (345 KW), Doti (200 KW), Jumla (200 KW) etc. were madeduring 1975 to 1985. Nepal Electricity Authority (NEA), established 1985, responsible
 
3
for generation, transmission and distribution of electric power brought the revolution inhydropower development. Many potential sites for hydropower generation had identifiedby private consultancies and companies in collaboration with NEA.Prior to 1960, all the hydropower stations were constructed through grant aid fromfriendly countries like the USSR (Panauti), India (Trishuli, Devighat, Gandak, Surajpura-Koshi) and China (Sunkoshi). Since 1970, hydropower development took a new turn withthe availability of bilateral and multilateral funding sources. The major donor countries inthe period were Japan, Germany, Norway, South Korea, Canada, Finland, Denmark,Sweden and USA. The financial lending agencies were the World Bank, ADB, JBIC,Saudi Fund for Development, Kuwait Fund and others.From 1990s, subsequent to the adoption of the policy of economic liberalization,hydropower development took yet another turn with the private sector entering the arena.After formulating Hydropower Development Policy
 – 
1992 by government of Nepal,many private sectors are involving towards power development. In order to encompassprojects of various scales intended for domestic consumption as well as to exporthydropower, the former policy was replaced by the Hydropower Development Policy2001 to provide further movement to active participation of private sectors.Development of hydropower in Nepal is a very complex task as it faces numerouschallenges and obstacles. Some of the factors attributed to the low level of hydropowerdevelopment are lack of capital, high cost of technology, political instability, and lowerload factors due to lower level of productive end-use of electricity and high technical andnon technical losses.
Legends for the Power Development in Nepal
 Table 1.1 Major Hydropower Plants
Name Capacity(MW) Name Capacity (MW)
Trishuli 24.00 Gandak 15.00Sunkoshi 10.05 Devighat 14.10Kulekhani 1 60.00 Khulekhani 2 32.00

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