168 MW of electricity linked to national grid

Around 168 MW of electricity has been connected to the national transmission system, which was initiated in Rasuwa under the leadership of Chilime Hydropower, a subsidiary of Nepal Electricity Authority (NEA). The Authority constructed a 220/132/33 KV substation in Thambuchet, Amachhodingmo Rural Municipality, Rasuwa, where the electricity produced by the three projects is now connected to the national grid. The 111 MW Rasuwagadhi, 42.5 MW Sanjen, and 14.8 MW Upper Sanjen hydropower projects have all been completed and connected to the national transmission line.

Additionally, Upper Sanjen was completed in September of last year and has been commercially generating electricity, selling electricity worth about Rs 300m so far. The construction of the 42.5 MW Sanjen Hydropower Project has been completed, and electricity production began on a trial basis from Friday. The 111 MW Rasuwagadhi Hydropower Project has also been completed and is currently undergoing trial electricity generation. Upon successful trial production and meeting the specified standards, commercial electricity production will begin at both Sanjen and Rasuwagadhi, with commercial operations expected to start within this month. The Upper Sanjen, Sanjen, and Rasuwagadhi hydropower projects, based on river flow, generate only about 80 MW of electricity during the winter.

Four projects, each with a capacity of 270 MW, have been initiated under the leadership of Chilime Hydropower Company. Three of these projects are completed, except for the 102 MW Madhya Bhotekoshi, which is still under construction in Sindhupalchowk.

All the projects faced challenges due to damage from the 2015 earthquake and subsequent aftershocks, floods, landslides, weak geological conditions, difficulties in transporting construction materials and fuel during the Madhes movement, major floods in the project areas every rainy season, continuous landslides on access roads, the Covid-19 pandemic, and issues with the import of goods due to the closure of the China-Nepal border after the pandemic.

NEA Managing Director Kulman Ghising stated that the completion of the Chilime projects, which had suffered delays due to various factors, is a significant achievement after continuous efforts. “When I was the Managing Director of Chilime Company, the construction of all four projects was pursued simultaneously with public investment. Although the projects faced delays mainly due to circumstances beyond our control, three of the projects have now been completed, and electricity production has commenced. The projects, located near the Kathmandu Valley, where electricity demand is high, will help balance and stabilize the electricity system during the winter,” said Managing Director Ghising.

Factors such as the earthquake, blockade, currency devaluation, extended construction periods due to loan interest rates, and increased administrative costs have led to an increase in the overall cost. The estimated cost of the Upper Sanjen and Sanjen projects was Rs 7.35bn, excluding interest during the construction period.

Arpan Bahadur Singh, CEO of Sanjen Hydropower Company, the project promoter, stated that the total estimated cost of the projects is Rs 9.2bn, excluding interest. He mentioned that, based on the cost estimate, the estimated cost for both projects is Rs 22.5m per megawatt. The Employees’ Provident Fund has provided loans to all four Chilime projects.

Chilime Hydropower Company holds 39.36 percent of the shares, the Authority holds 10.36 percent, and the Rasuwa local level has 1.28 percent in founder shares. Employees of the Employees’ Provident Fund and the founding organizations (the Authority, relevant local levels of Chilime and Rasuwa districts), as well as project-affected residents of Rasuwa and the general public, hold 49 percent of the common shares.

Upper Sanjen and Sanjen are expected to generate 1.8bn units of electricity annually. Upper Sanjen can operate at full capacity for 70 minutes during the evening peak, when electricity demand is highest. A peaking pond has been constructed for this purpose. CEO Singh explained that by storing water in the pond, additional electricity will be generated during the evening and winter months, contributing to the stability of the system.