The Pre-Feasibility Study (PFS) for the 210 MW Nikachhu Hydropower Project was carried out by Druk Green in 2010, pursuant to approval accorded by then Department of Energy (DoE) vide letter no. DoE/PCD/DGPC/2009/636 dated April 15, 2009.
The PFS study was upgraded to Feasibility Study (FS) level by DGPC Board in its 16th Meeting held on December 31, 2009. DoE approved this study vide approval letter no. DoE/DGPC- I/2009-19/157 dated January 3, 2011. As per this scheme, an independent 210 MW Nikachhu Hydropower Project with its tail water discharging back into Nikachhu river upstream of the confluence of Nikachhu and Mangdechhu was studied.
However, to reduce geological risks and reduce social and environment impacts, other alternatives with the relocation of the Surge Shaft and Power House at Norbudoi with the tail water from Power House discharging into Mangdechhu reservoir was studied. The approval to conduct study on the new alternatives was accorded by DGPC Board during the 30th Board Meeting on October 11, 2011.
The final Feasibility Study Report was submitted on September 19, 2012 which envisaged a pure run-of-river scheme with an installed capacity of 115 MW and a mean annual generation of 475.00 GWh from Nikachhu Project and an additional generation of 324.27 GWh from 720 MW Mangdechhu Hydropower Project, for a total of 799.27 GWh from this scheme against the earlier 843.61 GWh from the independent 210 MW Nikachhu Hydropower Project.
The scheme with the tail water discharging into the reservoir of the Mangdechhu Project was found attractive enough to be taken up for preparation of the Detailed Project Report (DPR). The DPR of the project was taken up on April 08, 2013 and completed in September, 2013. Since the height of the Dam was increased to provide 4 hours peaking capacity, the final capacity of the Nikachhu Hydropower Project increased to 118 MW, with mean annual generation of 491.52 GWh from Nikachhu Power House and 323.77 GWh additional generation by Mangdechhu Power House on account of Nikachhu water.
The DPR of the 118 MW project was approved by DGPC in its 43rd Board Meeting held on September 26, 2013. On March 04, 2014, the Cabinet approved the DPR and implementation of the 118 MW Nikachhu Hydropower Project. The formal approval of the Royal Government was communicated by the Cabinet Secretariat vide letter no.C-3/28/328, dated March 20, 2014.
Tangsibji Hydro Energy Limited (THyE), a 100 % subsidiary company of Druk Green Power Corporation Limited was then incorporated on April 25, 2014 as a Special Purpose Vehicle (SPV) with registration No. U20140425TR0438 for the implementation of the 118 MW Nikachhu Hydropower Project.
The 1st Extraordinary General Meeting of the shareholder and the 1st Board Meeting of the Company was held on August 28, 2014: with THyE functioning from this date.