KATHMANDU: Nepal’s Leading business house, Golyan Group announced that it would increase the installed capacity of electricity production to 900 MW in the next eight years. The Group has obtained permits from the government for more than a dozen electricity (hydroelectric and solar) projects that are now in various stages of implementation.
The Group has secured permits for 14 hydroelectric and solar projects from the government and estimated that $1.3 billion (Rs 169 billion) need to be invested to complete these projects.
Prawin Aryal, Chief Executive Officer of the Energy Division of the Group, said that 75 percent of the total cost has been raised from domestic and foreign banks and financial institutions as credit stating that the construction of the projects has proceeded according to plan.
“it would not be very difficult to raise only 25 percent of the remaining funds,” said Aryal.
The cost of the projects ranges between Rs 160.5 million and Rs 170 million. Electricity produced from 36 MW Upper Balephi hydropower project built in Sindhupalchowk has already come into into the transmission system this year. The remaining 13 power projects are in various stages of implementation.
According to Aryal, the group is working toward the goal of adding all the power projects that have received permits to the transmission system by the year 2030.
“In the next eight years, our goal is to complete the construction of all the hydropower and solar power projects under our Group,” talking to Nepal Infrastructure, Aryal said. Apart from Upper Balephi, the 97.2 MW Isuwa Khola semi-reservoir hydropower project Under this Group is currently under construction. This project is being constructed by KBNR Isuwa Khola Hydropower Company. This project is scheduled to be completed by mid-April 2024. However, due to the impact of the COVID-19 epidemic, the construction of the project has been delayed a year beyond the scheduled time. Aryal said that even if the project is delayed by one year, it will be possible to connect it to the transmission system by mid-April 2025.
This is the biggest project so far being built by the private sector with indigenous capital. When the project is completed and operational, it will be able to operate at full capacity for six hours a day. The completion of this project is expected to cost Rs 100.2 million.
Similarly, Golyan Group has also invested in the 54 MW lower Apsuwa project. It is being implemented by Mizu Energy Limited. Aryal said that the preparatory work is being done before starting the construction of the project. The detailed design of the project is also underway. This project is waiting for the power purchase agreement (PPA) with the Nepal Electricity Authority.
The 46 MW Upper Balephi project is being constructed in Sindhupalchok. The detailed design of this project, which has been advanced through the Upper Balephi Hydropower Company, is currently being prepared. Apart from these, four hydropower projects are currently under study.
The 50 MW Tarap Khola, 57 MW Mugu Khola, 306 MW Upper Mugu Khola, and 135 MW Namlang Khola hydropower projects are currently under study while Tarap Khola and Mugu Khola are under preliminary stage of study.
The study of the initial phase of the Upper Mugu and Namlang projects has been completed. The Federal Bank of America, International Development Finance Corporation (DFC), is providing financial support for the detailed study of these two semi-reservoir projects identified in Mugu district. The goal is to complete a detailed study of these projects within the next two years with the help of a grant from DFC. An agreement has been signed by the DFC to provide a grant of around Rs 1.2 billion for the study of these projects. Separate subsidiary companies have also been established to build these two projects. Apart from hydroelectricity, the Group has also planned to generate 60 MW of energy from solar sources.
Out of 60 MW, 20 MW of solar power projects are in the final stages of construction. Banke-1 and Banke-2 solar power projects of 10 megawatts each are under construction in Banke. Out of which, 10 MW of Banke-2 is being prepared to be connected to the transmission line within a month. An additional 10 MW of electricity from Banke-1 is also planned to be completed and connected to the transmission system within the next five months. Four more solar power projects with total capacity of 40 MM have completed their studies and are waiting for their turn for a Power Purchase Agreement (PPA) with Nepal.