KATHMANDU: The construction of three hydropower projects led by Chilime Hydropower Company, a subsidiary of the Nepal Electricity Authority (NEA), has been successfully completed in Rasuwa. The projects have added 168 MW of electricity to Nepal’s national transmission system.
The power generated by the 14.8 MW Upper Sanjen, 42.5 MW Sanjen, and 111 MW Rasuwagadhi hydropower projects has been integrated into the NEA’s 220/132/33 kV substation in Thambuchet, Aamachodingmo Rural Municipality, Rasuwa.
The Upper Sanjen project was completed last year and has already sold electricity worth approximately NPR 300 million. The Sanjen project was connected to the national grid last Friday, beginning test operations. The Rasuwagadhi project has also started test production, with commercial operations for both Sanjen and Rasuwagadhi expected to commence later this month upon meeting required standards.
Despite being run-of-river projects, these plants are expected to produce only 80 MW during the dry winter season.
Overcoming Challenges
Chilime Hydropower had initially started four projects totaling 270 MW, with three now completed, leaving only the 102 MW Middle Bhotekoshi project in Sindhupalchowk under construction. The projects faced numerous challenges, including the 2015 earthquake, subsequent aftershocks, landslides, floods, fuel shortages during the Madhesh Movement, road blockages, the COVID-19 pandemic, and logistical issues due to the Nepal-China border closure.
NEA Executive Director Kulman Ghising praised the completion of the projects despite these obstacles, calling it a significant achievement. “Though it took time due to unforeseen circumstances, the completion of these projects will help balance and ensure reliability in the power system, especially during winter when demand is higher,” he said.
Financial Details
The initial estimated cost of Upper Sanjen and Sanjen projects, excluding interest during construction, was NPR 7.35 billion. However, due to delays, interest costs, inflation, and administrative expenses, the revised cost is projected at NPR 9.2 billion, with an estimated NPR 225 million per megawatt.
Funding for all four Chilime projects has been supported by loans from the Employees Provident Fund. Chilime Hydropower Company holds a 39.36% share, NEA 10.36%, and local governments in Rasuwa 1.28%. The remaining 49% comprises shares held by locals, employees, and the general public.
Increased Energy Efficiency
The Upper Sanjen project features a peaking reservoir capable of storing water to produce additional electricity during peak demand periods. This reservoir will be particularly valuable during winter evenings, helping stabilize the national grid.
The Upper Sanjen and Sanjen projects are expected to generate 1.8 billion units of electricity annually. This is anticipated to contribute significantly to Nepal’s electricity supply, ensuring a stable and reliable energy system.