SOLU HYDROPOWER PRIVATE LIMITED
Who is our client
Essel Clean Solu Hydropwer Private Limited, a company established for the development, construction and operations of the Lower Solu Hydropower Project in Nepal.
The Lower Solu project comprises a run-of-river hydroelectric power plant in the Solukhumbu district in Nepal. With a capacity of 82MW, the project is the largest private sector hydropower project in Nepal. The favourable geographical conditions of the project location allows it to achieve its 500 meter water head drop without a large dam or reservoir and with a tunnel of only 4.3km, resulting in a small footprint and relatively low construction costs for the power generated. Power evacuation is guaranteed by Government of Nepal. The project is forecast to create over 1000 jobs during construction and operations and contribute to significant development of the project area.
Why we fund this project
When operational the project will provide electricity to an estimated 3 million people, helping to alleviate the current power shortages in the country. Nepal has one of the largest untapped hydropower potential in the world (estimated at >80,000 MW), but in spite of this still has one of the world's lowest electricity consumption rates. Severe power shortage - with power cuts of up to 18 hours a day in the dry season - is a serious bottleneck to sustainable economic growth in the country. Improving access to electrcity in a timely and cost-efficient manner is considered one of the most significant development challenges facing Nepal today. As the first internationally financed IPP in the country, Lower Solu is paving the way for others to follow.
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- Total FMO financing
- USD 5.40 MLN
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)