In a significant development marking a milestone in the construction of the Arun III hydropower project in Nepal, a breakthrough was achieved as the 11.8 KM headrace tunnel was completed.
The project, which is being constructed with Indian assistance, aims to contribute to the sustainable development of the region by providing clean, renewable energy.
The breakthrough ceremony was attended by Nepali Prime Minister Pushpa Kamal Dahal and Indian Ambassador Naveen Srivastava, signifying the close collaboration between the two nations in achieving their energy goals.
Project Overview and Progress
The Arun III hydropower project, situated on the Arun River, boasts a capacity of 900 MW and is valued at approximately USD 1.4 billion. Construction commenced in May 2018, with the project awarded to Satluj Jal Vidyut Nigam (SJVN) through international competitive bidding in March 2008.
The project, Nepal’s first export-oriented endeavor, is crucial for meeting the energy needs of both Nepal and India. It is anticipated to generate around 3,924 million units of electricity annually upon completion.
As of now, approximately 75 percent of the project work has been completed, showcasing substantial progress. The remaining tasks are underway at full pace, including the construction of the associated 217 km-long transmission line.
The project’s completion is slated for the near future, with electricity generation expected to commence next year.
Economic and Environmental Impact
The Arun III project holds immense economic potential for Nepal. Under the agreement, SJVN will provide a significant portion of the monthly generated energy free of cost, in addition to paying royalties over the next 25 years.
This is expected to amount to substantial economic benefits for the country, including dividends, income tax, VAT, and customs revenue.
Furthermore, the project signifies a shift towards sustainable energy practices, contributing to the region’s environmental well-being.
Despite initial setbacks and criticisms, the project’s revival and expansion demonstrate a commitment to harnessing renewable resources responsibly.
Future Prospects and Expansion
In addition to Arun III, SJVN is actively involved in the development of other hydroelectric projects in the Arun River basin, further bolstering the region’s energy infrastructure. The Lower Arun project, with a capacity of 679 MW, is another significant undertaking by SJVN in collaboration with Nepal.
Unlike Arun III, Lower Arun will utilize tailrace development, without the need for a reservoir or dam, ensuring minimal environmental impact.
The successful completion of Arun III and the ongoing progress of associated projects mark a pivotal moment in Nepal’s energy landscape.
It underscores the nation’s commitment to sustainable development and reinforces the strong partnership between Nepal and India in the energy sector.
The breakthrough achieved in the construction of the Arun III hydropower project heralds a new era of clean, renewable energy for Nepal and the region. With significant progress already made and future prospects promising, the project is poised to become a cornerstone of the region’s energy infrastructure.
As the project nears completion, it stands as a testament to the collaborative efforts between Nepal and India towards achieving common energy goals while ensuring environmental sustainability.
