Annapurna Becomes Nepal's Emerging Hydro Hub Amidst Environmental Concerns

Myagdi. Annapurna Rural Municipality has been establishing itself as Nepal's emerging 'Hydro Hub' over the past decade. With rivers like Kaligandaki, Mistri, Nilgiri, Rele, Ghalemdi, and Gharikhola being transformed into sources of energy production, economic, social, and physical development has accelerated here. However, along with hydropower development, concerns are also growing regarding environmental impact, biodiversity conservation, and the future of natural hot spring sources.

According to the Rural Municipality Chairman Bharat Kumar Pun, six hydropower projects with a capacity of 176 megawatts are currently operational in Annapurna, while three projects with a capacity of 255.5 megawatts are under construction. In the Narchang area, the 5 MW Ghalemdi Khola, 42 MW Mistri Khola, 38 MW Nilgiri-1, 71 MW Nilgiri-2, and 6 MW Rele Khola projects are operational. Similarly, the 14 MW Gharikhola Hydropower Project has come into operation in the border area of Wards No. 5 and 6.

In addition, the 180 MW Kaligandaki Gorge Hydropower Project has begun construction in the Bhaleybas area of Narchang. Super Ghalemdi (9.14 MW) and Middle Kaligandaki (66.5 MW) projects are under construction. IME Group is also preparing to advance the additional 66 MW Tipling Kaligandaki project.

Annapurna: Center of Energy Production

The history of hydropower development in the Annapurna region is considered to have started in 2045 BS with the construction of the 2 MW Tatopani Small Hydropower Project by the Nepal Electricity Authority. Although there was not much activity for a long time after that, with the increase in private sector investment in the last decade, Annapurna has become a center of energy production.

The 5 MW Ghalemdi Khola project came into operation in 2076 BS. After that, Mistri Khola, Nilgiri-1, Nilgiri-2, Gharikhola, and Rele Khola projects came into operation. Pramod Shrestha, a director of Ghalemdi Hydro, stated that investor attraction has significantly increased after the construction of the Dana Substation and transmission line.

Narchang Transformed by Hydropower

Annapurna Rural Municipality-4, Narchang, has become a center for hydropower development. The projects constructed and under construction here have transformed the appearance of the village. According to Ward Chairman Lok Bahadur Phagami, Narchang, which once lacked road access, is now connected by roads and other infrastructure due to hydropower projects. "Roads have been built by cutting through steep cliffs that we never imagined. Employment and income opportunities have been created in the village," he said.

In Narchang, with a population of about 450 households and 1,600 people, the number of workers who have come from outside to work on the projects is now greater than the local population. Land prices in the village have reached Rs 3 to 3.5 million per ropani. Many people who had migrated for foreign employment and to cities are starting to return to the village.

According to Tek Bahadur Pun, who returned from Pokhara and is operating a hotel business, the compulsion to live outside has been removed due to the creation of opportunities in the village. Locals are earning income from land compensation, hotel business, agriculture, animal husbandry, transportation, construction material supply, contracting, and share investment.

Rural Municipality's Income Increasing

The income of the rural municipality has also increased significantly due to royalties from hydropower projects. The Annapurna Rural Municipality received Rs 7 million in royalties in the last fiscal year through the Natural Resources and Fiscal Commission. Chief Administrative Officer Kapil Pandey informed that this amount has increased to Rs 17 million in the current fiscal year.

In addition, the projects are implementing programs in education, health, skill development, tourism promotion, and environmental conservation under social responsibility. The operation of the Hydro Engineering subject at Prabha Secondary School for five years is also a result of this.

Locals Not Benefiting Fully

Although hydropower projects have increased economic activity, the local community still appears not to be adequately prepared for long-term benefits. While most locals have taken immediate benefits from compensation, daily wages, or construction opportunities, there is a lack of strategic thinking on how to participate in the post-project economy. Local leaders say that long-term investment in agriculture, tourism, services, and entrepreneurship is necessary as employment opportunities will decrease after the construction is completed.

Residents of the affected areas have purchased shares in hydropower companies. In the Mistri Khola project alone, locals from the affected areas had invested over 1.7 million shares. Other projects are also preparing to issue shares for locals.

Environmental Challenges Growing

Debates about the environmental impact of hydropower development have also begun to increase. Locals complain that the habitat of fish, otters, and other aquatic life is being affected due to the reduced water flow in the rivers.

According to Avin Chochangi of Narchang, Mistri Khola used to have plenty of fish. However, after the water started flowing through the tunnel following the project's operation, aquatic life has disappeared from the river. Ward Chairman Phagami also stated that although there are economic and physical benefits from hydropower projects, aquatic life in the rivers is disappearing, traditional water sources are drying up, and wildlife movement has decreased.

According to locals, even though there is a provision for releasing minimum water in the river, the natural ecosystem is showing signs of impact. There are demands for more effective regular study and monitoring of environmental impacts.

Concerns Over the Future of Hot Springs

There are growing fears that the natural hot springs in the Annapurna region could also be at risk due to hydropower projects. Locals from the Bhrung Tatopani, Pauwdar, Ratoapani, and Sekarku areas have expressed concerns that natural hot spring sources could be affected by diverting river water through tunnels.

According to Anil Hirachan of Bhrung Tatopani, there is a risk that the hot spring sources could be affected by changes in the water flow of the Kaligandaki. Locals are seeking more assurance about the environmental impact of the projects. The voice demanding that the conservation of hot spring ponds, which are an important basis for tourism and internal income of Annapurna Rural Municipality, be prioritized has become stronger.

According to experts and local leaders, it is necessary to make hydropower a basis for the local economy, not just limited to compensation and daily wages. Suggestions include connecting agricultural production with the project's market, establishing industries based on energy use, integrating tourism and hydropower, and adopting strategies to provide technical training to local youth.

The rural municipality is also preparing to formulate a long-term policy to link hydropower development with overall economic transformation, said Chairman Pun. It appears that the funds received from royalties should be invested in productive sectors rather than consumption-oriented ones.