The long-delayed 102MW Middle Bhotekoshi Hydropower Project in Nepal has finally entered its electricity generation phase. The project, located in Sindhupalchok district and developed by Madhya Bhotekoshi Jalavidyut Company Limited, began construction in January 2013 and was initially scheduled for completion by December 2016. However, the project faced several delays due to natural disasters like the 2015 earthquake, monsoon floods, land disputes, and issues with contractors.
A significant breakthrough came in August 2023, when an agreement was reached with local residents over land compensation, resolving a 14-month delay in the construction of the transmission line that connects the power station to Nepal’s electricity grid. The completion of this 220 kV transmission line is critical to evacuating electricity from the power station to the Barhabise substation, where it will be distributed to the national grid.
The project is now in the final stages of testing, with engineers currently assessing the dam’s structural integrity by filling the reservoir and ensuring there are no leaks in the main tunnel. Electromechanical equipment is undergoing dry tests, and once water is allowed to flow through the tunnel, power generation is expected to begin within a month.
This run-of-the-river hydropower project, funded through a mix of debt financing from the Employees Provident Fund, equity from Chilime Hydropower, and public shares, has seen its costs balloon from an estimated Rs12.83 billion to over Rs16 billion. Despite the increased costs, the project is anticipated to generate 542.2 million units of electricity annually. However, output will drop significantly during the dry season. The electricity will be sold to the Nepal Electricity Authority at Rs8.40 per unit in the dry season and Rs4.80 during the monsoon, with expected annual revenue of Rs2.8 billion.
While the completion of this project is a major achievement for Nepal’s energy sector, it also highlights the challenges of hydropower development in the country, including infrastructure issues and the impact of natural disasters. Nonetheless, its impending operation will boost Nepal’s efforts to increase domestic energy production and reduce reliance on imported electricity.
