Norwegian power utility Statkraft has decided not to go ahead with the development of the 650 MW Tamakoshi-3 (TA3) hydropower project in Nepal, citing the lack of viable power offtake option, lower electricity price forecasts, insufficient transmission capacity for power evacuation and absence of necessary policies and regulatory framework for operationalizing power sales.
Statkraft had obtained a survey license for the TA3 project in 2007 from the Government of Nepal and has conducted both a Feasibility Study and ESIA (Environmental and Social Impact Assessment) of the project. Tamakoshi-3 was expected to generate 2.4 TWh/year and to export power to India. Total cost for the 650 MW project is estimated at US$1.5bn. Statkraft is still interested in further developments in Nepal, but projects need to demonstrate attractive returns on investment and stable long-term conditions in which to operate.
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