Supporting three hydroelectric projects and a 400 kV transmission line
What you should know
An agreement has been reached between various organizations to develop hydropower and construct a 400 kilovolt (kV) transmission line in the West Seti Corridor. The agreement was signed at a program organized at the Ministry of Energy.
A mutual understanding has been reached between Hydro Electricity Investment and Development Company Limited (HIDCL), National Transmission Grid Company Limited, Chainpur Seti Hydropower Company Limited, Chilime Seti Hydropower Company Limited and Samriddhi Engineering Limited with the aim of collaborating in the construction of hydropower projects and transmission infrastructure under the West Seti Corridor.
HIDCL Chief Executive Officer Prajesh Bikram Thapa, Transmission Company Chief Executive Officer Sagar Shrestha, Chainpur Seti Chief Executive Officer Anil Bhakta Shrestha, Chilime's Narayan Prasad Acharya and hydropower entrepreneur Shailendra Guragain, among others, signed the memorandum of understanding.
According to the understanding, there will be multilateral cooperation in the construction, mobilization of financial resources and operation of the 400 kV inter-country transmission line of Bajhang-Nilegada-Dodhara and the 210 MW Chainpur Seti, 87 MW Seti River-3 and 216 MW Upper Seti hydropower projects to be connected to that line.
HIDCL will lead the financial management of the projects. The National Transmission Grid Company will take over the responsibility of constructing and operating the transmission line through a 'Special Purpose Vehicle' after determining the necessary model.
At the signing ceremony of the multilateral agreement held on Monday, Minister for Energy, Water Resources and Irrigation Deepak Khadka said that the shortage of transmission lines will now be eliminated and this collaboration will provide concrete support in achieving the goals as per the energy development roadmap.
'This agreement, which has raised significant hopes in the energy sector, will fill the shortage of transmission infrastructure and will end the problem of wastage of generated electricity,' he said, 'The government is positive to create an environment where the private sector can also generate and sell. Work is being done to create a comfortable environment for the private sector to sell more electricity along with internal consumption.'
Speaking at the ceremony, Energy Secretary Suresh Acharya said that private-government partnership has become inevitable in Nepal's energy sector, and expressed confidence that such collaboration will bring systemic reforms and make national production capacity effective.
He said that this step should be taken as a milestone towards achieving self-reliance by balancing energy trade, transmission infrastructure and private investment flows.
Most of the projects signed under the MoU have already passed the major stages of construction permits, environmental impact assessments, power purchase agreements (PPA), grid connection and investment approvals. The study, design and land acquisition work related to the transmission line have also been completed.
The MoU will give a serious boost to energy infrastructure development in western Nepal, strengthen the national transmission network and also support India-Nepal electricity trade in the long term, the company said.
