Ridi Power's 9.9 MW Iwa Khola Hydropower Project Halted After Severe Flood Damage, Extensive Repairs Underway

Ridi Power Company Limited (RPC) has announced the temporary cessation of operations at its 9.9 MW Iwa Khola Hydropower Project, situated in the Panchthar district. This critical decision comes in the wake of extensive damage sustained by the project's vital pipeline infrastructure due to severe floods and landslides, rendering it unsafe for continued electricity generation. The incident underscores the inherent vulnerabilities faced by hydropower projects in Nepal, particularly during the intense monsoon season, and highlights the operational risks investors must consider in this sector.

The company reported that persistent and heavy rainfall since Jestha (mid-May to mid-June) triggered a series of devastating floods and landslides. These natural calamities led to significant riverbank erosion in the vicinity of the project's headrace pipeline, which is crucial for channeling water to the turbines. The erosion severely compromised critical support structures, including anchor blocks, pipe supports, and other essential civil infrastructure, which are designed to secure the pipeline against environmental stresses. Furthermore, the relentless rainfall caused substantial erosion beneath the pipeline itself, creating immense pressure that resulted in multiple pipe bursts and cracks at various points along its length.

Following the initial assessment of the damage, Ridi Power Company promptly initiated repair works and conducted phased testing in an earnest effort to restore electricity generation. However, during these rigorous testing procedures, additional and unforeseen damage was detected at several critical junctures along the pipeline. This discovery necessitated a more thorough re-evaluation of the situation. A subsequent detailed technical assessment led the company to the conclusion that superficial repairs or welding would be insufficient to guarantee the long-term safety and operational integrity of the project. Consequently, a more comprehensive and extensive rehabilitation effort is now deemed essential.

As a direct result of this assessment, the Iwa Khola Hydropower Project has been under a complete plant shutdown since Ashadh 26 (mid-July). This shutdown is crucial to facilitate permanent repair and comprehensive technical restoration, ensuring that the project can resume operations safely and reliably. For investors, this temporary halt in operations signifies a period of potential revenue loss for Ridi Power, which could impact its short-term financial performance. Hydropower projects, while offering long-term stable returns, are susceptible to such natural disruptions, which can lead to unexpected capital expenditures for repairs and lost income from power generation.

Ridi Power has assured stakeholders that comprehensive technical inspections and permanent repair works are actively underway. The company has committed to issuing another formal notice to inform the market and its investors once the exact date and time for the project's recommissioning have been firmly established. This transparency is vital for maintaining investor confidence. While the 9.9 MW capacity of the Iwa Khola project might seem modest in the broader national grid context, its contribution is significant for RPC's overall generation portfolio and revenue streams. The timely and robust restoration of this project will be key for Ridi Power to mitigate the financial impact and reassure its shareholders of its operational resilience and commitment to sustainable energy production in Nepal.