Kathmandu: The Langtang Hydropower Project in Rasuwa has started trial power generation from today, feeding 12 megawatts of electricity into the central transmission line of the Nepal Electricity Authority. With this, the 20-megawatt capacity project is moving towards commercial production. According to Bijay Mohan Bhattarai, Managing Director of the promoting company Multi Energy Development Pvt. Ltd., the electricity generated during the spring season has been connected to the grid on a trial basis. He stated that with the start of production, the project is now preparing to gradually move toward full capacity.
After long preparations and construction, the project has reached the production phase. Earlier, the company had announced that production would start within a few days. The start of trial production is seen as the beginning of the project’s practical operation.
This project will not remain limited to 20 megawatts of production. The company is working to expand an additional 10 megawatts, bringing the total capacity to 30 megawatts. The necessary policy procedures for expansion have mostly been completed, according to the company. Approvals have been obtained from the Department of Electricity Development and the Ministry of Forests and Environment, and the draft power purchase agreement has been approved by the Electricity Trade Department. Additionally, the required technical consent from the grid side has also been secured. This indicates that the project has now moved from paperwork to the implementation stage.
The project has also advanced on the technical front. For the additional capacity, the company has signed an agreement with Austria-based Global Hydro to procure electromechanical equipment. This will cover turbines, generators, control systems, transformers, switchgear, cabling, and testing–commissioning of major structural work. Such an international agreement signals that the expansion plan is actively moving forward.
The Langtang project has reached this stage after a long process. It received survey permission on March 22, 2013. After completing the feasibility study, the project signed a power purchase agreement for 10 megawatts on January 13, 2016 and an additional 10 megawatts on November 2, 2017. Now, with the expansion proposal, the project is moving toward a 30-megawatt capacity.
The promoting company, Multi Energy Development Pvt. Ltd., was established on February 9, 2005 and operates under the RM Group. The group has a long-term goal of producing 500 megawatts of electricity within the next 10 years.
For investors in the energy sector, the progress of this project is particularly significant. With the start of trial production, a basis for cash flow has been established, and since the expansion plan is advancing simultaneously, both production capacity and revenue are expected to increase in the future. This is anticipated to further strengthen the long-term value and investment appeal of the project.
Jalasarokar
