A number of setbacks are forcing renewable energy developer SN Power to reduce its presence in Nepal, the company has announced.
The company — which entered Nepal in 2006 through the transfer of Stratkraft’s majority share of 57.1% in Himal Power Limited (HPL) — says that “in the world of business, ambitions and goals are sometimes unattainable.”
As a result, SN Power has offered severance packages to 11 employees while putting a hold on new business and project development activities in the South Asian country.
SN Power has already received the project development documents for the 600-MW Tamakoshi-3 hydroelectric project, which was announced in February 2008. The hydropower plant is part of a government initiative to develop 10,000 MW of new hydropower and is being developed in conjunction with Mumbai’s Tata Power through a special purpose vehicle structure.
SN Power says it is negotiating with Nepal’s government to maintain rights to develop the Tamakoshi-3 hydropower plant, although any new projects outside the Tamakoshi-3 will be pursued via HPL.
SN Power says it will retain its stake and involvement with HPL, which is developing a 67-MW expansion of the Khimti hydropower plant.
According to the company’s website, HPL supplies about 15% of Nepal’s total electrical output through its hydropower resources.