Compelo Energy is using cookies

We use them to give you the best experience. If you continue using our website, we'll assume that you are happy to receive all cookies on this website.

ContinueLearn More

Enron quits Nepal project

Enron has withdrawn from plans to build a 10,800MW hydro power plant in Nepal, it was announced in mid April.

US-based Enron had first proposed in 1996 to build a dam on Nepal’s Karnali river. The project was proposed on a build, operate, transfer basis: electricity from the plant would be transported via a new transmission line to be sold on to power-hungry India and China, and the plant would be transferred to Nepali owbnership after 50 years. The project was attractive to Nepal — whose installed capacity currently stands at around 300MW — because it would bring both extra capacity and foreign currency earnings. However the investment required was high — estimates range up to US$600 million — and up to now the project had not reached the survey stage. Enron withdrew its application for a survey licence, but said it would continue to monitor the power market and may reconsider the project at a later date.