The Nepal Electricity Authority (NEA) has accelerated the development of pumped storage hydropower projects (PSHP), highlighting their low electricity production cost and ability to ensure an uninterrupted power supply throughout the year.
According to the NEA, 33 such projects have been recently selected across the country, out of a total of 156 identified sites. Kulman Ghising, Managing Director of NEA, stated that the first phase aims to construct 510 MW of PSHP. “We are expediting the process to obtain survey licenses and plan to gradually enhance the production capacity of these power plants,” he said.
In the initial phase, the NEA plans to generate 336 billion units of energy from PSHP. The estimated production cost stands at USD 587,000 (Rs 77.5 million), significantly lower than conventional run-of-river hydropower projects. A study by the Institute of Engineering, Tribhuvan University, found that the average cost of hydropower development in Nepal is Rs 219.2 million per MW, making PSHP a cost-effective alternative.
PSHPs work by pumping water upriver during off-peak hours and storing it in upstream reservoirs. During peak demand periods, the stored water is released to generate electricity, improving energy security and power system stability. The NEA also envisions selling surplus energy to India at higher prices during peak hours.
Among the major PSHP projects, a 332 MW pumped storage facility is undergoing a feasibility study at Syarphu Lake in Rukum (West). The 670 MW Dudhkoshi Reservoir Hydropower Project has also planned a 200 MW pumped storage system. Additionally, a feasibility study is in progress for the 1,596 MW Hulingtar-Dukim PSHP in Dhading and Chitwan districts, strategically located near Kathmandu’s power load center with good infrastructure access.
With these initiatives, Nepal is taking significant steps toward energy sustainability, reducing dependency on seasonal hydropower generation, and strengthening regional energy trade.
