Electricity generated by the 111 MW Rasuwagadhi Hydropower Project, developed by Chilime Hydropower Company, a subsidiary of the Nepal Electricity Authority (NEA), has been successfully connected to the national grid. Located in Gosaikunda Rural Municipality of Rasuwa, the project commenced trial electricity generation from one of its three 37 MW units on Wednesday, initially producing 4.2 MW.
The NEA stated that electricity generation will be gradually increased following the successful trial. According to Chhabi Gaire, managing director of Rasuwagadhi Hydropower Company, the project aims to begin full commercial operations within a month after completing all required tests and ensuring compliance with specified standards.
The electricity generated from the powerhouse at Timure is transmitted through a 10-kilometer, 132 kV transmission line built by the project. It connects to the national grid at the NEA’s 220/132/33 kV substation in Thambuchet in Rasuwa. From there, the electricity flows into the national transmission system via the Chilime-Trishuli and Trishuli-Kathmandu 220 kV transmission lines. The Chilime-Trishuli line, operational since November 6, 2024, is critical for managing Kathmandu Valley's electricity demand during winter.
Due to reduced water flow in the river during the dry season, the project will operate below full capacity, generating around 37 MW during winter.
The project encountered significant delays due to various challenges, including the 2015 earthquake, repeated landslides, floods, transportation issues during the Madhesh agitation, and disruptions caused by the COVID-19 pandemic. Contracts for construction were signed with China International Water and Electric Corporation in January 2014 and Voith Hydro Pvt. Ltd., India, in July 2014.
Initially, the project's cost was estimated at Rs 13.7 billion. However, due to currency depreciation and extended construction deadlines, the cost rose to Rs 18.7 billion, excluding interest during construction, which
The project is owned by Chilime Hydropower Company (32.79%), NEA (18%), and local governments of Rasuwa (0.21%). Funding was initially divided equally between equity (50%) and debt (50%), with the Employees Provident Fund (EPF) as the primary lender. However, due to delays, the debt ratio increased to 60%, while equity decreased to 40%.
The project has 49% of its shares allocated to ordinary shareholders, including EPF contributors (15.5%), employees of NEA, Chilime, and the lending institution (4.5%), project-affected residents of Rasuwa (10%), and the general public (15%).
The project is expected to generate 614 million units of electricity annually, earning approximately Rs 3.25 billion in revenue. It will play a vital role in supporting Nepal's electricity demand, especially during the dry season when hydropower generation typically declines.
