Source: Nepali Times
Nepal struggles to balance energy and water needs with dams that damage livelihoods and ecosystems
For decades, Nepal’s leaders have promised prosperity by harnessing ‘white oil’, the vast hydroelectricity potential of Himalayan rivers.
So far, less than one-tenth of the 48,000MW of feasible hydropower has been exploited — nearly all from run-of-river schemes that do not store water, but use the energy of steep rapids.
This results in an annual monsoon power glut, and power scarcity in the dry season as rivers run low. Dams to store water in large reservoirs would solve that problem and balance year-round electricity generation and water supply.
Nepal’s only existing reservoir project is Kulekhani, a rock-filled dam built back in 1982 that impounded a 7km long lake called Indrasarovar near Kathmandu. The only second reservoir in Nepal is the 150m tall concrete dam here in Tanahu that stores water for 17 days and is scheduled for completion in 2026.
Plans for other dams are stalled: Budi Gandaki (1,200MW) with a 280m high dam, West Seti (750MW), Sun Kosi II (1,110MW) and the mammoth Mahakali (Pancheshwar) Dam on the western border with India. Even bigger projects have been proposed, like the gigantic Karnali Dam at Chisapani (10,800MW) and the Kosi High Dam at Barachhetra in Sunsari.
“Except Kulekhani, all hydropower projects in Nepal are run-of-river which produce enough electricity during the peak monsoon season, but in winter there is no rain and during that time, we buy electricity at a costlier rate than we sell to India,” says former Water Resources Minister Dipak Gyawali.
Gyawali reasons that storage hydropower will even out the seasonal imbalance of both the water and the electricity, and boost Nepal’s domestic economy.
However, storage projects are more expensive because of construction, land acquisition and impact on food supply. But there is a way to reduce cost by ensuring that regulated water has multi-purpose benefits downstream for agriculture and for fisheries, water supply, or tourism, with electricity a byproduct.
Hydropower developer Kumar Pandey agrees: “The widening of a reservoir project’s purpose broadens investment prospects from different sectors and helps minimise the energy cost.”
However, Nepal will have to balance the economy’s growing demand for year-round clean energy with those dams damaging local livelihoods, riverine ecosystems, lowering food production and exposing expensive infrastructure to climate and seismic risk.
Industrialised countries are dismantling some of their dams to let their rivers flow free again. But Nepal is only now embarking on a dam-building spree for energy and regulated water.
“Nepal’s need for electricity is still to be fulfilled, so dismantling dams is pretty far-fetched,” says Gyawali. “Rather than ‘no dams’, we should be pushing for ‘no bad dams’.”
There are currently 167 licensed hydropower projects in Nepal whose installed capacity will reach 3,000MW this year. When 278 new projects that are under construction come on stream, electricity generation will exceed 10,000MW by 2030.
Dams in Nepal tend to have shorter lifespans because Himalayan rivers have some of the highest sediment loads in the world. Making dams seismic resistant adds to their cost. On top of this, there are now added dangers of glacial lake outburst floods, extreme rainfall and landslide dammed river ruptures.
Nepal’s rivers frequently suffer these disasters, the latest in 2021 in Melamchi and eastern Nepal last year that damaged hydropower infrastructure. But an example of catastrophic destruction was the October 2023 flood on Sikkim’s Teesta that destroyed the $1.2 billion Chungthang dam and other projects.
“Climate change has drastically changed rainfall patterns, and we are yet to understand the impact on the hydropower projects,” says Kumar Pandey. “There can be many different factors that put dams at risk, but exaggerating the risks even before a project is started is fear-mongering.”
Near Damauli, halfway between Kathmandu and Pokhara, the designers of the Tanahu dam say they have taken into account the Seti River’s origins in the glaciers of the Annapurna and its frequent floods.
“We factor in the worst-case scenario and measure the probable maximum flood that could happen and tailor the structure to withstand the probable flood,” says acting project head Shyamji Bhandari at the project site near Damauli.
Tanahu’s design includes flushing gates to minimise monsoon sedimentation to ensure longevity of the dam. Bhandari adds, “And if these measures aren’t enough and a calamity does strike, we also have an emergency siren system to warn downstream areas.”
Nepal’s rivers are older than the Himalaya, and many of them start in China, cutting mighty gorges through the mountains, and flow down to join the Ganga in India before emptying into the delta in Bangladesh.
Rivers do not respect country boundaries, but hydropower projects are built within national jurisdictions. Nepal has had to navigate intricate geopolitics with its lower riparian neighbour India, and it has not always gone smoothly.
Past projects like the Kosi and Gandaki that India built on the border 50 years ago are seen by many experts as being unfair to Nepal. More recently, New Delhi has refused to buy surplus electricity from hydropower projects in Nepal in which the Chinese are involved.
Reservoirs in the Himalaya are going to be even more geopolitically sensitive because the climate crisis will make water a strategic commodity for India’s densely populated and increasingly prosperous Ganga plains.
“Rivers are continuous with upstream-downstream linkages. Anything done on rivers in Nepal will have an impact downstream, which is why rivers should be studied in totality, and infrastructure designed keeping that in mind,” says water expert and author Ajaya Dixit.
Storage dams in Nepal will regulate water on rivers flowing downstream, and if Nepal builds them with international loans India will benefit for free, while Nepal’s fertile and populated valleys are submerged. But for strategic reasons, India may want to have a say in Nepal’s plans to dam its rivers.
An estimated 70% of dry season flow and 40% of annual discharge on the Ganga comes down from its tributaries in Nepal. It therefore makes sense for India and Nepal to plan for the future by regulating flow.
The other consideration is ecological. Dams are even more disruptive on riverine ecosystems than run-of-river schemes, and destroy the habitat of Himalayan rivers which are havens for biodiversity. Some endangered fish, amphibian and bird species are found nowhere else on the planet.
A 2018 Asian Development Bank report, Impact of Dams on Fish and Rivers in Nepal, found that hydropower projects did not use any tool to measure the possible impact on aquatic biodiversity.
‘Dams act as barriers for migratory movement of fish, in many cases, threatening species’ survival,’ the report stated.
In northeastern Nepal, a local community in Lumba Sumba is lobbying internationally to crowdfund a campaign against a hydropower project on ancestral land in the Chhujung River valley that they say will also disturb the habitat of endangered snow leopards.
How well Nepal’s planners can balance geopolitics, rising energy demand and economic growth with ecosystem protection and respect for human rights will be tested in the coming years, as the country embarks on a dam-building spree.
Displacing people to store water
Nepal’s first reservoir project on the Kulekhani Khola was built in 1982 on a spring-fed stream near Kathmandu. The inundation displaced 3,500 people who were not adequately compensated.
“Back then, people were naive and Kulekhani residents gave up their land without much discussion,” says Ram Kumar Shrestha, 59, whose family was among those who had to move. They are currently living on the outskirts of Markhu.
His father, Jhamak Lal Shrestha was the village head during the absolute monarchy days. Residents of Kulekhani under consideration to be given land in Thori near the Indian border in Chitwan, but many were not happy.
“It was too hot and there was danger from wild animals,” recalls the senior Shrestha, now 79. Some invested the compensation money on land elsewhere and did well, but others spent it on everyday expenses and were soon destitute.
The compensation and resettlement plan for the Kulekhani displaced was ‘deeply flawed’ as per a report by researcher Jagdish Chandra Pokharel. And Nepal’s record for resettlement of people for infrastructure and national parks has not improved since then.
Kulekhani’s history is being repeated in Tanahu. By the banks of the Seti River in the village of Badarkuna, cows and water buffaloes graze without a herder in sight amidst cement pillars with painted numbers. These are farms that belong to the people of Paltyang village, who cultivated fields by the river but lived up the mountain till as recently as three years ago.
“Our ancestors lived in Paltyang because there was malaria down here in Badarkuna,” explains Til Bahadur Thapa, 64, who along with wife Sansasri worked the fields by the river and climbed back up to Paltyang just to sleep.
The cement pillars on Thapa’s field mark the area that will be inundated by the Tanahu dam. After they were put up, the Thapas stopped farming here. Yam Kumari Thapa, 43, grew more than enough rice and maize in her fields near Fedi Khola, a tributary of Seti– that will soon be submerged. She sold the surplus in the market. Now, she is fighting for compensation for her land.
A little above Badarkuna is a Dalit settlement that will also soon be underwater. The land is undocumented, and this means compensation from the project will be complicated for the 12 families here. “We know that electricity is important and we are not against development,” says Battimaya Biswakarma of the Dalit settlement of Wangtangetar. “All we are asking for is a place to live like we were living here.”
The Tanahu project has affected 560 households but 41 households are fighting for land compensation.
How the Tanahu project compensates them will set a precedent for other even bigger reservoir projects being planned, like Budi Gandaki which will displace 3,560 households and Sun Kosi II which will affect 15,000 people. “Hydropower is built on rivers and water is a socially required resource which is why the development of dams brings out a lot of local social and environmental issues,” explains hydropower developer Kumar Pandey.
Run-of-river projects are at high risk from floods, but relatively benign because unlike reservoirs, they do not displace too many people and submerge fertile farmlands.
Some experts say Nepal should not be investing in colossal projects like the $1.3 billion Upper Arun in northeastern Nepal directly under mountains that will be vulnerable to glacial lake outburst floods, and instead prioritise smaller schemes and spread the risk.
“Smaller run-of-river projects require much less area while mega storage projects submerge huge tracts of farmland and displace people, making the financial and social cost heavier,” says Jagdish Chandra Pokharel, author of the Kulekhani report and former chair of the National Planning Commission.
However, the need for a year-round balance of electricity and water supply is forcing Nepal’s planners to look at the larger picture and opt for big reservoir projects. Til Bahadur Thapa looks below at his fields on the banks of Seti River that his ancestors have farmed for generations but will now be submerged by the Tanahu reservoir. He says simply, “A country cannot develop by driving people like us off the land.”
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