Storage projects: Missing pieces of Nepal’s hydro puzzle

Nepal has made remarkable progress in expanding electricity generation capacity from 50 MW to 3,500 MW in 60 years. The private sector has played a crucial role in this process, which is evident in its contribution of around 80 percent of the installed capacity. However, much of the 3,500 MW is generated by run-of-river (RoR) projects that operate at full capacity for four to five months only during the rainy season.

Electricity generation drops sharply during the dry season and Nepal has to import power to meet the domestic needs . The over reliance on RoR projects, therefore, is not ideal for attaining energy stability and security. If, for example, Nepal had, say, 40 per cent of the 3,500 MW capacity coming from storage projects, the supply situation would have been different in terms of stability. The over reliance on RoR projects also explains why Nepal has been unable to insulate the national grid from seasonal fluctuations.