--- title: "Development of hydropower in Nepal" subject: "Power Plant Design" chapter: 1 key: "semester_8/power_plant_design:hydro-development-nepal" source: https://www.bctengineer.com/q/semester_8/power_plant_design/hydro-development-nepal site: BCT Engineering --- # Development of hydropower in Nepal Power Plant Design · Chapter 1: Energy Sources and Electric Power Generation - Asked in: 2079 Chaitra, 6 marks - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_8/power_plant_design/hydro-development-nepal - Whole chapter: https://www.bctengineer.com/md/semester_8/power_plant_design/chapter-1 ## Question Discuss the development of hydro power plant in the context of Nepal. ## Short answer Hydropower development began with Pharping (500 kW, 1911), expanded with foreign aid, opened to IPPs in 1992, and grew rapidly after 2016. Installed capacity now exceeds 3,000 MW, about 95% hydro, mostly run-of-river, with IPPs owning more than half and exports to India starting in 2021. Challenges include seasonal mismatch, few storage plants, transmission delays and sediment. ## Answer Hydropower is the main source of electricity in Nepal; its development started in 1911 and has grown fastest after private sector entry and especially after 2016. Nepal's theoretical potential is about 83,000 MW, with about 42,000 MW economically feasible. #### Historical phases 1. **Early period (1911–1950):** Pharping (500 kW, 1911) was the first plant, followed by Sundarijal (640 kW, 1936). 2. **Aid-based period (1950–1990):** Panauti, Trishuli, Sunkoshi, Gandak, Kulekhani I (60 MW, the only big storage plant) built with foreign aid. Nepal Electricity Authority (NEA) formed in 1985. 3. **Opening to private sector (1992–2015):** Hydropower Development Policy (1992) and Electricity Act (1992) allowed IPPs. Khimti (60 MW) and Bhotekoshi (45 MW) were the first big IPP plants. Kali Gandaki A (144 MW) and Middle Marsyangdi (70 MW) built by NEA. Supply could not meet demand, so load shedding reached up to 18 hours/day (2008–2016). 4. **Rapid growth (2016–present):** Load shedding ended in 2016/17. Upper Tamakoshi (456 MW, 2021), Kulekhani III, Rasuwagadhi, Solu Dudhkoshi and many IPP projects added. Capacity rose above 3,000 MW. Export to India began in 2021. #### Present status - About 95% of grid capacity is hydro; most plants are **run-of-river** or **peaking ROR**, so there is a wet-season surplus and dry-season deficit. - IPPs own more than half of installed capacity. - Micro-hydro (through AEPC) supplies many remote villages. #### Institutions and policies NEA, Department of Electricity Development (DoED), Investment Board Nepal (IBN), Electricity Regulatory Commission (ERC), Hydropower Development Policy 2001, Energy Development Roadmap (target about 28,500 MW by 2035). #### Challenges - Few storage plants; seasonal mismatch. - Delays in transmission lines and land acquisition. - High sediment load damaging turbines; GLOF and landslide risks. - Financing, PPA and market issues; local disputes. #### Way forward Storage and pumped-storage projects, 400 kV transmission and cross-border lines, power trade with India and Bangladesh, and higher domestic consumption (EVs, cooking, industries). ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. What was the first hydropower plant in Nepal? A. Trishuli B. Kulekhani I C. Sundarijal (640 kW) D. Pharping (500 kW, 1911) Answer: D. Pharping, 500 kW, 1911, was the first plant. (Key point: Historical phases) 2. What opened the sector to private IPPs? A. Hydropower Development Policy and Electricity Act of 1992 B. Formation of NEA in 1985 C. Upper Tamakoshi D. Export in 2021 Answer: A. The 1992 policy and Act allowed IPPs; Khimti and Bhotekoshi were first. (Key point: Private sector entry) 3. Why is there seasonal mismatch? A. Most plants are storage B. Most plants are run-of-river or peaking ROR and there are few storage plants C. No ROR plants exist D. Demand is zero Answer: B. Few storage plants cause wet-season surplus and dry-season deficit. (Key point: Present status) 4. Which is a challenge? A. Too many storage plants B. Low sediment C. Transmission delays, sediment, GLOF and landslide risks D. Excess skilled staff Answer: C. Transmission, land, sediment, GLOF and financing issues slow development. 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