Press Release : Statkraft to discontinue development of Tamakoshi-3 hydroelectric project

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    (Oslo/Kathmandu, 12th January 2016) Statkraft has notified the Investment Board of Nepal (IBN) of its decision to discontinue the development of the Tamakoshi-3 (TA3) Hydroelectric Project.

    The decision comes as a result of a thorough assessment of all aspects of the project, including commercial, technical and regulatory factors.

    “These factors include a lack of viable power offtake option, lower electricity price forecasts, insufficient transmission capacity for power evacuation and absence of necessary policies and regulatory framework for operationalizing power sales. It also reflects the increased bureaucratic hurdles for foreign investments, a fragile political situation and a geo-political situation leading to a non-conducive project development environment,” says Dr. Sandip Shah, VP and Country Director Nepal for Statkraft.

    Statkraft is still interested in further developments in Nepal, but projects need to demonstrate attractive returns on investment and stable long-term conditions in which to operate. On this note, Ms. Tima Utne Iyer, Sr. Vice President at Statkraft and Chairperson of Himal Power Ltd., commented, “As majority owner of Himal Power Ltd (HPL), Statkraft has a long-term commitment to Nepal as the license agreement for the 60 MW Khimti hydropower plant runs until 2045’’ She further added, “Our decision is purely linked to the Tamakoshi-3 Project and does not influence our activities in South Asia”.

    Statkraft obtained a survey license for the TA3 project in 2007 from the Government of Nepal and has conducted both a Feasibility Study and ESIA (Environmental and Social Impact Assessment) of the project.

    Based on the requirements of the Integrated Nepal Power System (INPS), export possibilities to the Indian electricity market and to other countries of the South Asian region, the TA3 project was optimized to be developed as a peaking run-of-river project with an installed capacity of 650 MW and an annual production of 2.43 TWh. The total estimated cost of the TA3 Project is USD 1.5 Billion.

    About Statkraft

    Statkraft is a leading company in hydropower internationally and Europe’s largest generator of renewable energy. The Group produces hydropower, wind power, gas-fired power and district heating and is a global player in energy market operations. Statkraft has 4200 employees in more than 20 countries.

    For more information, please contact:

    Dr. Sandip Shah, VP and Country Director Nepal, Statkraft
    Phone: +977 98010 25634
    Email: sandip.shah@statkraft.com
    URL : www.statkraft.com