Kathmandu [Nepal], Sept 15 – Nepal’s energy sector has suffered an estimated Rs. 151.04 billion in damage and economic losses from the Bhotekoshi floods, accounting for nearly 37 per cent of the disaster’s total impact, according to the Rapid Damage and Needs Assessment (RDNA) report.
The August 26 floods caused more than Rs. 408.28 billion in total damage and losses across sectors, while the overall reconstruction and rehabilitation requirement has been estimated at Rs. 723.31 billion.
Of the energy sector’s losses, physical damage is estimated at Rs. 134.69 billion, with a further Rs. 16.34 billion recorded as economic losses.
Hydropower projects account for the largest share, with Rs. 119.95 billion in physical damage, or 89.1 per cent of total physical damage in the energy sector. Solar plants, transmission lines, substations, distribution lines and switchyards account for the remaining damage.
The assessment found that 13 hydropower projects with a combined capacity of 759.025 MW were affected. Seven projects, totalling 250.4 MW, were already operational, while six projects with a combined capacity of 508.625 MW were under construction.
This means around two-thirds of the affected hydropower capacity was still under construction when the floods struck, raising concerns not only over existing generation but also delays to future electricity generation.
Among the affected projects are the 216 MW Upper Trishuli-1, 111 MW Rasuwagadhi, 120 MW Rasuwa Bhotekoshi, 78 MW Sanjen Khola, 6.42 MW Upper Mailung A, 5 MW Mailung Khola, 20 MW Langtang Khola and 22 MW Chilime hydropower projects.
The 24 MW Trishuli, 14.1 MW Devighat, 60 MW Upper Trishuli-3A, 37 MW Upper Trishuli-3B and 15.6 MW Middle Trishuli Ganga projects were also affected.
The Trishuli 220 kV 3B Hub Substation was completely damaged, while several transmission lines and towers operating at 132 kV, 66 kV and 220 kV also sustained damage.
Solar plants with a combined capacity of 24.36 MW were affected, with damage estimated at Rs. 4.73 billion. Transmission lines sustained Rs. 3.47 billion in damage, followed by substations at Rs. 3.37 billion, distribution lines at Rs. 1.62 billion and switchyards at Rs. 1.55 billion.
The assessment estimates annual energy losses of 2,520 GWh from hydropower and 210.48 GWh from solar projects, with the combined loss valued at Rs. 16.05 billion. Hydropower accounts for Rs. 14.82 billion of this amount and solar projects Rs. 1.23 billion. A further Rs. 289 million has been recorded as energy royalty loss.
However, the RDNA cautions that the affected hydropower capacity should not be treated as electricity generation already lost, since more than two-thirds of the affected capacity was under construction. The impact of delays will depend on the original commissioning schedules of individual projects.
The assessment also says restoration will depend on conditions including sediment deposition, unstable slopes, difficult access, equipment availability and transmission connectivity. It does not provide a consolidated count of customers without electricity or project-specific outage and restart dates.
The energy sector’s total recovery requirement has been estimated at Rs. 390.62 billion, or about USD 2.58 billion.
Of this, Rs. 1.05 billion has been identified for early recovery during the first six months, including Rs. 500 million for transmission restoration, Rs. 400 million for substations, Rs. 100 million for distribution systems and Rs. 50 million for micro-hydropower projects.
The remaining Rs. 389.57 billion has been projected for longer-term recovery beyond six months. This will focus on restoring damaged generation and grid infrastructure and completing essential works at hydropower projects that were under construction when the floods occurred.
The RDNA, however, cautions that the Rs. 390.62 billion figure should not be interpreted as a direct public financing requirement.
The assessment does not distinguish between costs expected to be borne by private project developers, the Nepal Electricity Authority, insurers or the government. Ownership, contractual obligations, insurance coverage and existing financing arrangements will need to be verified before determining who will finance the recovery.
The assessment was conducted under the leadership of the National Disaster Risk Reduction and Management Authority in coordination with the National Planning Commission, federal ministries, provincial and local governments, security agencies and technical institutions.
The report also notes that the aggregated damage valuation does not represent the final repair or reconstruction cost of individual projects. Detailed engineering assessments will be required to determine the full extent of damage and the work needed for safe restoration.
