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Agreement Signed to Connect Karnali’s Private Hydropower Projects to National Grid

CEO Tab by CEO Tab
February 11, 2025
in Prime News
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Land acquisition initiated for transmission line of Arun III
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An agreement has been reached to connect the electricity generated by three private-sector hydropower projects in Karnali Province to the national transmission line. These projects, with a combined capacity of 990 megawatts, will be linked to the Karnali Corridor 330 kV transmission line, which will be constructed by the National Transmission Grid Company Limited.

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The electricity from the 420 MW Tila-2, 235 MW Humla Karnali-1, and 335 MW Humla Karnali-2 projects will be connected to this transmission line. Representatives from the project promoters, including Ashish Subedi, Chairman of Ruru Hydroelectric Project Limited, Bhanu Bhakta Pokhrel, Chairman of Energy Tila Power Company Pvt. Ltd., and Dr. Netra Gyawali, CEO of the National Transmission Grid Company, signed the agreement.

The National Transmission Grid Company has already begun construction of the 400 kV Karnali Corridor transmission line, which will run from the Karnali River in Humla to Phukot in Kalikot, through Betan in Surkhet, and extend to Dodhara in Kanchanpur. According to CEO Gyawali, the transmission line will span 181 kilometers. Electricity from Tila-2 will be connected at the Phukot substation, while electricity from Humla Karnali-1 and 2 will be connected at the Humla substation.

The 185 km Karnali Corridor transmission line is expected to be completed by 2031, with an estimated cost of Rs. 12 billion. The 95 km segment from the Phukot hub to the lower section has already commenced construction. A feasibility study for the 90 km section from Phukot to the Humla hub will be completed within two years, after which construction will proceed.

The Tila-2 project in Kalikot is set for completion by 2030, while the 570 MW Humla Karnali-1 and 2 projects are expected to be completed within six years. The Energy Tila Power Company Pvt. Ltd. and Ruru Hydroelectric Project Limited are responsible for constructing these projects. The agreement outlines the connection of electricity from Tila-2 at the Phukot substation and from Humla Karnali-1 and 2 at the Humla substation.

An Environmental Impact Assessment for the Humla Karnali-1 and 2 projects is currently underway, with Hydroelectric Engineering, Nepal’s leading hydro consultant, overseeing the environmental study.

Following the withdrawal of a Chinese company from its commitment to purchase electricity from Humla Karnali-1 and 2, Nepali companies took over the projects. Initially licensed for construction by Sichuan Wangping Energy, the projects were later acquired by Ruru Hydroelectric Project Ltd. and Karnali Water Power Pvt. Ltd. in 2022.

The Tila-2 hydropower project, located in Khalla, Tilagufa Municipality-5, Kalikot, has an estimated cost of Rs. 42.1 billion. The project has already signed a power purchase agreement, and both the Environmental Impact Assessment and the Detailed Project Report have been completed, with land acquisition as the only remaining step before construction begins.

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