Hydropower

Hydropower is the major source of electricity generation in Nepal. Domestic electricity demand in the Integrated Nepal Power System (INPS) increases during the winter months when river flows are low and decreases during summer months when river flows are high. The load factor of the power system is below 50% which necessitates more peaking power.This demand pattern is due to the domination of domestic load and is expected to continue for the foreseeable future until industrial demand overtakes domestic demand.This situation discourages the optimum use of river flows by simple run of river power plants, due to higher unit costs, producing less energy during the winter months and spilling water in summer. Seasonal regulated power plants are more suitable for such load pattern. However these types of power plants are viable only for much higher capacities requiring a large investment and associated adverse environmental problems.