PRE-FEASIBILITY STUDY OF SETI RIVER – 6 STORAGE HYDROPOWER

Abstract

The proposed SR-6 Storage Hydropower project is a storage project. It is located in Doti and Achham District, of Sudurpaschim Province of Nepal. The project site is 868.3km from Kathmandu in East west direction. The catchment area of the dam site is 7016.355 km2 . The project has installed capacity of 304MW and utilize design flow of 300m3/ sec discharge for power production. The power generated through 5 units of Vertical axis Francis turbine produce an average of 984GWh energy annually, of which the dry season is 384GWh and the wet season energy is 600GWh. The different structural components like Headworks, Headrace Tunnel, Penstock, Powerhouse and Tailrace are aligned along the left bank of West Seti River. The river would be diverted from about 600m upstream from the underground powerhouse utilizing 120 m gross head for energy production. Pre-Feasibility study of the project has been carried out to determine its viability in terms of technical, financial, economic, and environmental aspects of project. This pre-feasibility study is specially focused on the design of civil parts, but due to limitations of time, the sensitivity analysis and other secondary elements are not emphasized in the report. An economic and financial analysis of the project is also carried out for the project feasibility. The methodology adopted is usual discounted cash flow technique where three tools namely Internal Rate of return (IRR), Net Present Value (NPV), and Benefit Cost Ration (B/C) have been computed. The estimated project cost is NRs. 62,032,144,431.65. The financial analysis shows that the Internal Rate of Return is 11.83%, B/C ratio of 1.19 and NPV of NRs. 8,578,397 in case of all equity. In case of debt and equity financing the IRR is 11.73%, B/C ratio is 1.25 and NPV is NRs. 5,483,218. The economic analysis shows that the IRR is 13.32%, B/C ratio of 1.39 and NPV of NRs. 19,445,825. The economic and financial analysis shows that, this project will be an attractive scheme, so this project is financially, socially, environmentally, and economically feasible