West Seti hydroelectric project: Assessment of its contribution to Nepal?s economic development

The proposed West Seti Hydroelectric Project, 750 MW, is one of the best projects of its genre, because it will not only generate peak-in energy and good quality power but because it will do so at low cost and, furthermore, its implementation will result in flood control and dry season augmented flow for lower riparian areas. Moreover, export of hydropower to India from this project will result in a carbon offset benefit which is tradable on the carbon market and has potential as a good source of revenue. This paper evaluates such benefits and also ascertains to whom such benefits accrue, besides identifying costs (so far unaccounted for). This project's contribution to Nepal's economic development may even be higher by a magnitude if it is to be structured as suggested in this paper.