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  Flood-hit energy sector faces Rs 390.62 billion reconstruction bill

The devastating flood that swept through the Bhote Koshi and Trishuli river corridors on Bhadra 10 has caused extensive damage to Nepal’s energy infrastructure, with reconstruction and recovery of the affected energy and grid systems estimated to require Rs 390.62 billion.

A Rapid Damage and Needs Assessment (RDNA) prepared by a joint technical team involving the National Planning Commission and the National Disaster Risk Reduction and Management Authority (NDRRMA) has identified damage to 13 hydropower projects with a combined capacity of 783 MW in Rasuwa and Nuwakot districts.

The assessment has also identified damage to five solar power projects with a combined capacity of 24 MW. The energy and road sectors have emerged as the two areas suffering the heaviest infrastructure losses from the disaster.

According to the RDNA, an estimated Rs 390 billion 62 crore 30 lakh 40 thousand will be required for the recovery and reconstruction of the energy sector and grid systems. The scale of the estimated requirement highlights the extent of damage inflicted on power generation facilities, access roads, transmission infrastructure and other supporting structures.

Among the major hydropower projects affected are the 216 MW Upper Trishuli-1, 111 MW Rasuwagadhi, 120 MW Rasuwagadhi?, 20 MW Langtang Khola, 22 MW Chilime, 5 MW Mailung Khola, 24 MW Trishuli Hydropower Centre, 14.1 MW Devighat Hydropower Centre, 60 MW Upper Trishuli-3A, 37 MW Upper Trishuli-3B and 15.6 MW Middle Trishuli Gangaa, according to the assessment.

The flood has damaged not only generation facilities but also project access roads, transmission systems and other essential infrastructure. Restoring these assets is expected to require a prolonged reconstruction effort and substantial public and private investment.

The damage has also disrupted the human resources supporting the affected energy projects. The RDNA report states that 917 employees and workers associated with the affected projects remain unaccounted for.

Nearly two weeks after the disaster, search and rescue operations are continuing for the missing workers and employees. The Nepal Army, Armed Police Force and Nepal Police, along with technical experts from different countries and specialists from the affected hydropower companies, have been involved in the search and rescue efforts.

The human toll and infrastructure damage together pose a major challenge to Nepal’s energy sector. The affected projects include several strategically important hydropower plants that contribute to the country’s electricity generation and transmission network.

The assessment comes at a time when Nepal has been rapidly expanding its hydropower generation capacity and strengthening its electricity infrastructure. Damage to projects and transmission assets in the Trishuli and Bhote Koshi corridors could therefore have consequences beyond individual project sites, particularly if reconstruction takes longer than expected.

The estimated Rs 390.62 billion requirement also places a significant financial burden on the government, project developers and development partners. Mobilising resources for reconstruction, restoring access to damaged project sites and ensuring the safety of workers will be critical to bringing the affected energy infrastructure back into operation.

The government is expected to use the RDNA findings to determine reconstruction priorities and mobilise financial and technical support for the recovery of the flood-hit districts.

The scale of the damage underscores the vulnerability of Nepal’s hydropower infrastructure to increasingly severe natural disasters and raises broader questions about disaster-resilient design, risk assessment and climate adaptation in future energy projects.

[ 11 September 2026 / fiscalnepal.com ]   
 

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