Kathmandu, March 2, 2025 – The Nepal Electricity Authority (NEA) has prioritized the development of pumped storage hydropower projects to manage daily fluctuations in electricity demand and enhance the country’s energy security. NEA’s Project Development Department had initially identified 156 potential pumped storage projects across the country. Out of these, 33 projects with a combined capacity of 42,000 MW have been selected and categorized.
A feasibility study is currently underway for a 332 MW pumped storage project at Sharpu Lake in Rukum (West), with a survey license already obtained. Similarly, the 670 MW Dudh Koshi Reservoir Hydropower Project is also conducting a study for a 200 MW pumped storage project.
In areas close to Kathmandu Valley and major electricity load centers, where road access, transmission lines, and other infrastructure are readily available, feasibility studies will be conducted for the 1,596 MW Hulintar-Dukim Pumped Storage Project in Hugdi and Mowa rivers, located in Benighat Rorang (Dhading) and Ichchhakamana Rural Municipality (Chitwan). The Project Development Department is currently conducting desk studies for this initiative.
For the project, two reservoirs will be constructed:
- An upper reservoir with a 45-meter dam on Hugdi River.
- A lower reservoir with a 103-meter dam on Mowa River.
The powerhouse will be situated on the Mowa River. Electricity will be generated by utilizing stored water from the Hugdi reservoir, and after power generation, the water will be pumped back from the Mowa reservoir to the Hugdi reservoir. The project is designed to operate at full capacity for six hours during peak demand periods.
Importance of Pumped Storage Projects
Pumped storage projects function by pumping water to an upper reservoir during off-peak hours, when electricity demand is low and energy prices are minimal. During peak hours, this stored water is released to generate electricity when demand and prices are higher. These projects play a crucial role in grid stability, peak demand management, and surplus energy utilization. Additionally, electricity generated during peak demand periods can be used domestically or sold at higher prices to India.
On-Site Inspection of Hulintar-Dukim Project
NEA’s Managing Director Kulman Ghising, along with Director Nasibman Pradhan and other officials, conducted an on-site inspection of the Hulintar-Dukim Pumped Storage Project in Dhading and Chitwan. Ghising stated that based on geographical location, environmental and social conditions, accessibility to infrastructure, and proximity to load centers, Hulintar-Dukim appears to be an attractive option compared to other projects.
Construction and Cost Estimates
In the first phase, the project is planned to be built with a capacity of 510 MW, with gradual expansion to its full potential. Ghising emphasized that the process for obtaining a survey license will begin immediately to prioritize its development.
The project is expected to generate approximately 3.36 billion units of electricity annually, with an estimated cost of $587,000 per MW (approximately NPR 77.5 million per MW).
