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Investment
Hydro Electric Power
Theoretical hydropower potential of Nepal's rivers, based on average flows has been estimated at 83 million kilowatts,
which is one of the largest potentials in the World. Despite of the enormous hydropower potential, till now Nepal
has been able to generate only 261.918 MW of hydro power which is 0.3% of its total hydropower potential. Demand for power
is growing at about 10 percent annually. At present electric power supply is available to only 14 percent of the population. It is enunciated that the country's power demand will grow to 0.61 million kilowatts by the year 2005 and to 1.64 million
kilowatts by the year 2015. A large amount of power produced in Nepal can be easily exported to neighboring countries.
Nepal Electricity Act of 1993 provides access for the sale of its power to other country and also for the import of power
from other country. Nepal & India entered into a Power Trade Agreement, which allows independent mutual power deals on
government, semi government and private sector levels between two countries.
Hydropower Potential
| Average annual flow |
225 Billion QM |
| Theoretical Generation Capacity |
83000 MW |
| Economically Feasible Capacity |
44000 MW |
| Existing hydropower generation |
250 MW |
| Demand by 2005 |
610 MW |
Income tax Incentives for hydro power
- Projects:
| Generation |
5 years tax holiday |
| Transmission |
10 years tax holiday |
| O & M contract |
5 years tax holiday |
- Royalty Payments:
| Period: |
1-15 years |
| Installed Capacity |
NRs. 100/KW |
| Energy Generated |
2% of Ave. tariff/KWh |
| Period: |
15 + years |
| Installed Capacity |
NRs. 1000/KW |
| Energy Generated |
10% of Ave. tariff/KWh |
Investment Opportunities in Hydropower Sector
| Name of the Project |
Installed Capacity (MW) |
Average annual Energy GWH |
Cost Million US$ |
| Arun III |
402 |
2891 |
852.6 |
| Karnali (Chisapani) |
10,800 |
20842 |
4812 |
| Upper Arun |
335 |
2050 |
500.8 |
| Pancheshwar |
6,480 |
10671 |
2980 |
| Lower Arun |
308 |
2275 |
481.1 |
| Kali Gandaki-2 |
660 |
2660 |
772.0 |
| Budhi Gandaki |
600 |
2495 |
774.0 |
| Upper Karnali |
300 |
1794 |
316 |
| Budhi Ganga |
22 |
|
46 |
| Rautahat |
24 |
|
39 |
| Likhu Khola |
34 |
|
61 |
| Kabeli |
35 |
|
68 |
| Tamur Mewa |
101 |
|
192 |
| Dudh Koshi |
300 |
|
675 |
| Upper Karnali |
300 |
|
492 |
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