Arun-3 Hydropower Project
About Arun-3 Hydropower Project
The Arun-3 Hydropower Project is a 900 MW run-of-the-river hydroelectric facility being built on the Arun River in Nepal’s Sankhuwasabha district, developed by India’s SJVN Ltd. It is one of South Asia’s largest hydropower projects, expected to be operational by 2024–2025.
Key Facts
- Location: Arun River, Sankhuwasabha District, Koshi Province, Nepal
- Capacity: 900 MW (largest hydropower project in Nepal)
- Developer: SJVN Arun-III Power Development Company (SAPDC), a wholly owned subsidiary of India’s Satluj Jal Vidyut Nigam (SJVN)
- Investment: Approx. US$1.6 billion, including $156 million for transmission lines
- Annual Generation: ~4,018.87 million units of electricity
- Construction Start: 2018
- Expected Commissioning: 2024–2025
- Ownership Model: Build-Own-Operate-Transfer (BOOT). SAPDC will operate for 25 years (excluding 5 years of construction) before transferring ownership to Nepal
Strategic Importance
- For Nepal:
- Boosts domestic electricity supply and reduces reliance on imports.
- Enhances infrastructure and employment opportunities in remote regions.
- Nepal will receive 21.9% of the electricity free of cost as part of the agreement.
- For India:
- Strengthens cross-border energy cooperation with Nepal.
- Secures clean energy imports to meet growing demand.
- Reinforces India’s role in regional hydropower development.
Broader Context
- Arun-3 is part of Nepal’s push to harness its vast hydropower potential (estimated at 83,000 MW).
- It symbolizes India-Nepal energy diplomacy, with financial closure achieved jointly by both governments in 2020.
- The project is expected to transform Nepal into an energy exporter, especially to India, once operational.
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