Kathmandu, 8 Mangsir 2081 (November 23, 2024): The construction of three hydropower projects initiated in Rasuwa under the leadership of Chilime Hydropower Company, a subsidiary of Nepal Electricity Authority (NEA), has been completed. A total of 168 MW of electricity from these projects has been integrated into the national transmission system. The electricity generated is connected to NEA’s 220/132/33 kV substation at Thambuchet, Aamachodingmo Rural Municipality, Rasuwa.
The completed projects include the 14.8 MW Upper Sanjen, 42.5 MW Sanjen, and 111 MW Rasuwagadhi Hydropower Projects, all of which are now linked to the national transmission line. Among these, Upper Sanjen was completed in Ashoj last year and has since generated around NPR 300 million in electricity sales. The Sanjen project was recently completed, and test production began on Friday after connecting to the national grid. Similarly, the Rasuwagadhi project is currently in its testing phase.
Once testing is successfully completed and required standards are met, commercial electricity production for both Sanjen and Rasuwagadhi is expected to begin within this month. Being run-of-river projects, Upper Sanjen, Sanjen, and Rasuwagadhi are expected to generate approximately 80 MW during the dry season.
Chilime Hydropower Company originally initiated four projects with a total capacity of 270 MW. While three projects in Rasuwa are now operational, the 102 MW Middle Bhotekoshi Hydropower Project in Sindhupalchowk is still under construction.
These projects faced significant delays and challenges due to the 2015 earthquake, aftershocks, landslides, Madhesh movement-related disruptions in material transport, COVID-19, and the closure of the border with China, which hampered equipment imports. NEA Managing Director Kulman Ghising described the completion of these projects despite such obstacles as a major achievement.
“When I served as the Managing Director of Chilime, we initiated all four projects simultaneously with public investment. Despite delays due to uncontrollable circumstances, three projects have now been completed and are generating electricity. Located near Kathmandu Valley, these projects will help balance and stabilize the power system, particularly during the winter evenings when electricity demand peaks,” said Ghising.
Due to delays, inflation, depreciation of the Nepali currency, increased interest rates, and administrative expenses, the cost of the projects has risen. The estimated cost for Upper Sanjen and Sanjen, excluding interest during the construction period, was NPR 7.35 billion. However, the revised cost is estimated at NPR 9.2 billion, or approximately NPR 225 million per MW. The Employees Provident Fund (EPF) provided loans for all four projects.
The shareholding structure of the projects includes:
- 39.36% by Chilime Hydropower Company
- 10.36% by NEA
- 1.28% by local governments in Rasuwa
- 49% as public shares, distributed among EPF contributors, employees of NEA, Chilime, and local government offices, affected locals from Rasuwa, and the general public.
Combined, Upper Sanjen and Sanjen will produce approximately 1.8 billion units of electricity annually. Upper Sanjen is equipped with a peaking pond, enabling it to store water during the day and operate at full capacity for 70 minutes during evening peak demand. This feature will enhance electricity supply during the winter evenings and contribute to system stability, according to Sanjen CEO Arpan Bahadur Singh.
