Bhutan’s Nikachhu Plant Nears Completion, Set to Commission by December
The upcoming month of November is set to witness the dam impounding phase, marking a pivotal moment in the project's development.
By Dechen Dolkar
Trongsa, Bhutan – The Nikachhu Hydropower Project, a significant energy endeavor in Bhutan, is on the brink of becoming operational. As of now, the 118MW project is approximately 96.29 percent complete and is poised to commission by the end of this year, with December marked as the target date.
The remaining major tasks crucial for the project’s success include the lining and plugging of face-six and face-seven of the head race tunnel, as well as various hydromechanical works at the dam. These essential components are expected to be completed by November.
The project management has been making significant strides in ensuring its readiness. The electro-mechanical testing for the various equipment installed inside the powerhouse is already underway. Furthermore, the final supervisory control and data acquisition (SCADA) integration and testing are currently in progress, with a projected completion date within this month.
The upcoming month of November is set to witness the dam impounding phase, marking a pivotal moment in the project’s development.
In terms of workforce, the project began with 173 employees, but the current count stands at 112 individuals. However, it is anticipated that approximately 57 more employees will be recruited for the operation and maintenance of the plant.
The Nikachhu Hydropower Project has incurred a total approved project cost of Nu 11.89 billion, financed through a debt-equity ratio of 65:35. Notably, the project has spent approximately Nu 12.8 billion thus far.
Regarding the financial aspects, the Power Purchase Agreement (PPA) for the project sets the levelized tariff at Nu 4.05 per unit. However, the initial quoted tariff will start at Nu 3.30 per kWh with annual escalation over the first 15 years of operation. The tariff will see incremental increases annually.
The project’s journey has been marked by formidable challenges, particularly in the realm of geology. Right from its inception, it grappled with poor rock mass at the dam site, necessitating the implementation of additional measures and support systems. Moreover, substantial water ingress posed a considerable challenge, causing delays in the excavation process. To counter these issues, the project employed additional support systems and turned to polyurethane grouting.
As the project approaches its commissioning phase, it is noteworthy that these geological hurdles no longer impede its progress. A silver lining for the project has been the discovery of solid rock mass during the powerhouse excavation.
The Nikachhu Hydropower Project is a wholly-owned subsidiary of the Druk Green Power Corporation (DGPC), an entity committed to furthering Bhutan’s energy independence and sustainability.
With the commissioning of this project on the horizon, Bhutan is taking significant steps towards harnessing its hydropower potential, supporting its economic growth, and contributing to a more sustainable future.
