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National Hydro Power Company (NHPC)
National Hydro Power Company Limited (NHPC) was established in …. with the objective of developing small hydropower projects in Nepal. NHPC today operates as a wholly public owned company, with no Promoter group. The Company’s stock is traded in the Nepal Stock Exchange with corresponding stock symbol “NHPC”. The Company has utilized domestic funds, foreign investment as well as public funds to develop hydropower projects and generate clean energy.
As a company NHPC not only believe in doing different things, but we are committed to doing those things differently. We understand the importance of engineering in our projects, and are committed to ensuring that all our projects undergo the rigors of prudent technical and engineering review. We will always remain conservative in our approach to investment, only making firm commitment to invest when we are certain of success. And yet, even though our approach to investment will be conservative, we will boldly set large targets for ourselves, to see how far we can reach, in the quickest possible time. We believe in preserving nature, in whatever we do. As people developing clean and renewable energy it is in our DNA to work with nature- to protect nature -wherever possible. Furthermore, we will maintain diversity in our workplace respecting all cultures, religions, and minority groups. There is strength is unity and we will keep our work force united in the midst diversity.
The management of NHPC is guided by the Board of Directors, who themselves are esteemed professionals of varying business backgrounds. Board Directors are officials elected to serve a four-year term. The Board sees to it that the company is being run smoothly and professionally. The Management gets its directions form the Board and the numerous committees that are formed from within the Board members.
We have highly competent employees who are capable of operating, repairing and maintaining hydro projects, the associated transmission facilities and the substations. Over the years the Company has increased its in-house capacity in project selection, project engineering and optimization, construction planning, and project operation and maintenance. Our expertise has also been expanded in repairing and maintaining ‘sick’ projects into viable profitable businesses. NHPC itself has made a huge financial turn around in the last few years. We also have personnel with in-depth knowledge of the present policies and practices in hydropower development in Nepal.
Initially NHPC was set up as a Joint Venture Company formed by Nepali owners and a Norwegian Company to develop its first hydro project, the 7,500 kW Indrawati III HPP, in Sindhupalchowk District, Bagmati Province, Nepal. NHPC has been commercially operating the Indrawati III Hydro Power Project since 1999. The Company has the concession license for this Project for up to the year 2047 A.D. The national utility of Nepal, Nepal Electricity Authority, is the off taker of the energy produced by this Project.
NHPC also owns the license for the 4,500 kW Lower Indrawati Hydropower Project, which is a downstream cascade of the Indrawati III Hydropower Project. The Lower Indrawati Project is presently in study phase and is schedule to come on line by April of 2024. This Project will generate about 27 GWh of energy annually and will generate annual revenue of about N. Rs. 170 million.
NHPC is also a major promoter of the 14.15 MW Lower Erkhuwa Hydropower Project in Bhojpur District, Province 1. The project is presently under construction and is expected to start generation within 2023. This project will generate about 80 GWh of energy annually which will generate about N. Rs. 450 million in revenue.
NHPC is also mindful of new opportunities in the electricity trading domain. We believed there will be ample opportunities in trading of electricity in the domestic market, as well as between neighboring countries in the region. This business has opened up after the signing of a Power Trade Agreement between the Governments of Nepal and India, as well as the publishing of cross border trade guidelines and regulations by the Indian government. The new Electricity Act, presently awaiting enactment in the Parliament, will open up doors for Nepal companies to participate in the trade of electricity. This could also be a new business opportunity for NHPC to engage in. It is with his in mind that NHPC promoted the Nepal Power Exchange Ltd., (NEPEX), a Nepali power trading platform, with other like-minded hydropower generating companies.
In the long run NHPC intends to build, own and operate many small and medium sized hydropower projects. We are always in the lookout for investment opportunities in hydropower related business. Having overcome a difficult past, NHPC is finally a well-respected member of the hydropower community in Nepal. We have made serious and tangible improvements in the way we conduct our business. We have increased our credibility amongst our creditors and investors. We have sufficiently been able to convince the Government to award us new licenses to develop more projects. Our accounts are transparent and our business ethics is uncompromised, and second to none.
It is our policy to engage productively with governmental agencies such as the Ministry of Energy Water Resources and Irrigation, Electricity Regulatory Commission, Department of Electricity Development, Nepal Electricity Authority, Company Registrar’s Office, Stock Exchange Board of Nepal etc. to carry out the day to day business. Likewise, the company will maintain cordial relations with Nepal Rastra Bank (the central bank of Nepal), our banking partners, shareholders, suppliers and vendors, and all stake holders. Employees will continue to be our most prized assets and it will be our policy to continually upgrade them and improve the work environment.