A total of 72.5 megawatts of electricity from two major hydropower projects in Nepal is set to be connected to the national grid. As the demand for electrical energy continues to rise in the country, these domestically funded projects are in the final stage of preparation to come into operation.

The 50-megawatt United Mewa Hydropower Project, constructed by United Mewa Khola Hydropower Company, and the 22.5-megawatt Thulo Khola ‘A’ Hydropower Project, developed by Thulo Khola Hydropower Company, are in the final stage of electricity generation. Internal testing of these projects has been completed, and they are now in the process of obtaining operating approval and preparing for grid connection. Once their electricity is added to the national grid, it is expected to significantly improve the country’s energy supply.

Once electricity generation begins from these projects, it is believed that the growing pressure of electricity imports—especially during the winter season—will be reduced. At present, Nepal imports electricity from India during the dry season. With an increase in domestic production, imports are expected to decline, which will also help in saving foreign currency.

According to Ashish Thapa, Executive Chairman of United Mewa Khola Hydropower, and Narendra Ballav Pantha, Executive Chairman of Upper Thulo Khola Hydropower, both projects will soon come into operation and contribute to the country’s energy consumption needs as well as the promotion of domestic investment. These projects are considered important for reducing dependence on electricity imports and increasing the utilization of domestic energy resources.

The government has set a goal to increase hydropower generation in the coming years and build a self-reliant energy system. The timely completion of medium-capacity projects such as United Mewa and Thulo Khola is considered an important step toward achieving this objective.

Once these projects come into operation, it is expected that not only will the national transmission system be strengthened, but there will also be positive impacts on the industrial sector, household consumers, and rural electrification.

This project is located in Taplejung. The tunnel construction work was carried out by South Asian Infrastructure Company. Electricity generated from the project will be connected to the Dhungesanghu Substation of the Koshi Corridor. The company itself has constructed the required 7-kilometer-long transmission line from the powerhouse to the substation.

Studies show that the project will generate 97.424 gigawatt-hours of electricity in winter and 205.587 gigawatt-hours during the monsoon, producing a total of 303.011 gigawatt-hours of electricity.

The estimated cost to complete the project is Rs 9 billion. Of the total cost, 75 percent—equivalent to Rs 7 billion—has been financed through loans from banks and financial institutions, while the remaining 25 percent, or Rs 2 billion, has been invested as equity. The project has received loan investments led by Citizens Bank, along with Kumari Bank, Nepal Investment Mega Bank, Nepal Bank, Nepal Infrastructure Bank, Siddhartha Bank, Nepal SBI Bank, and Civil Bank.

This project is one of the “Super Six” projects that the government awarded to the private sector through a competitive bidding process for construction.

22.5-Megawatt Thulo Khola Project

This project is located on the border of Ghugunga-7 Chimkhola and Ward No. 8 Kuinemangle in Myagdi. The construction of the project’s infrastructure was carried out by Dev Urja Construction Pvt. Ltd.

Water from the dam built on the Raghuganga River above Sugurthala will be channeled through a penstock pipeline to the powerhouse located at the base of the Seti Valley, where it will be used to generate electricity.

The estimated cost of this project is Rs 3 billion. Of this, 30 percent has been invested by the promoter, while the remaining 70 percent will be financed through a financial agreement, with Agriculture Development Bank and Machhapuchhre Bank investing under the leadership of Citizens Bank.

Urjasanchar