Hydropower has been in use in Nepal for centuries in the form of traditional vertical axis water wheel (pani ghatta'). During the Rana Regime (1846-1951), no serious attempts were made until 1930 for initiating .economic development in a systematic basis. The first hydroelectric installation in Nepal was 500 kW .hydropower plant at Pharping built in 1911 to power electricity. to Kathmandu. Another installation was done .at Sundarijal of 900 kW (64Q kW now) capacity in 1934. It was only in 1935 that a development agency was constituted by the name of UDYOG PARISHAD (Development Board). However, a planning approach to development ,in Nepal began in 1956 with the formulation of the First Five Year Plan (1956-1961).
Electric Power Development in 20th Century
In the First Plan (1956-1961), some work was dope on projects of Teku and Bhaktiur diesel stations, generating only t970 kW ,of additional power. In the interim year between the First and Second Plan, 105kW of diesel power was made available. In the Second Plan period (1962-1965), Panauti project with a capacity of 2.4 MW, Patan diesel plant with a capacity of 1.47 MW, and Birgunj diesel plant with a capacity of 560 kW were brought in operation. By the middle of the Third Plan (1965-1970), the total supply of power had been increased by 19.96 MW primarily from Trishuli project (12 MW), from Pokhara hydroelectric project (1 MW), from Hetauda diesel station (4.47 MW), and from Patan and Biratnagar diesel installations (2.49 MW). In the Fourth Plan period (1970- 1975), 12.3 MW of electric power was generated. Total installed capacity at the end of fourth plan was 49.634 MW. Total available electric power in the country at the end of Fifth plan (1975-1980) was 79.914 MW; out of which 52.588 MW was generated from hydro electric plants, 15.758 MW from, diesel plants, and 11.568 MW electricity was generated by the industries themselves. The target set for the Sixth Plan period (1980-1985) was to generate 129.923 MW- of hydroelectricity and 15 MW of diesel electricity to make a grand total of 144.923 MW. During the Seventh Plan period (1985-1990), total electricity production was 258.500 MW; out of which 230.7 MW was from hydroelectricity and the rest 27 MW was from diesel plant. Marsyangdi (69MW) and Kulekhani II (32 MW) Were installed during this plan period. Despite the liberal policy of Eighth Plan (1992- 1997) for private investment, only 13 MW of hydroelectricity was added in the national grid resulting the total electricity capacity of 271.5 MW. Jhimruk hydroelectric plant (12 W) Was the major achievement of this plan. The Ninth Plan (1997-2002) was the golden Period for electricity development in the country. By the end of 2002, the total installed capacity of electricity generation in the country was 584 MW.
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