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Nepal Begins Major 220 kV Transmission Line Project to Boost Energy Network

CEO Tab by CEO Tab
March 20, 2026
in Prime News
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Land acquisition initiated for transmission line of Arun III
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The Nepal Electricity Authority (NEA) has initiated construction of the Lekhnath–Damauli 220 kV Transmission Line by laying its foundation stone at the Damauli Substation in Tanahun district.

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The ceremony was attended by NEA Managing Director Hitendra Dev Shakya, German Ambassador to Nepal Udo Völz, and Michael Sumser, along with other stakeholders.

According to the German Embassy in Kathmandu, the project involves the construction of a 45-kilometer double-circuit transmission line along with modern gas-insulated substations in Lekhnath and Damauli. The initiative is being co-financed by the German government through KfW Development Bank.

With a transmission capacity of approximately 1,000 MW, the project is expected to strengthen Nepal’s regional electricity network and improve the delivery of power generated from hydropower projects, including the Tanahun Hydropower Project.

By enhancing grid reliability and enabling greater integration of renewable energy, the project is anticipated to play a significant role in Nepal’s sustainable economic development and energy security.

Ambassador Völz emphasized that expanding reliable transmission infrastructure is essential to meet Nepal’s growing energy needs. He noted that Germany is committed to supporting Nepal in harnessing its renewable energy potential and delivering clean electricity to households, businesses, and industries.

This initiative also highlights the long-standing energy partnership between Nepal and Germany. German financial cooperation in Nepal’s energy sector dates back decades, beginning with projects such as the Lower Sringdi Hydropower Project and Medium Sringdi Hydropower Project.

Beyond hydropower, Germany has supported the development of transmission infrastructure, including the Chilime–Trishuli transmission line and the National Load Dispatch Center, as well as contributing to around 55 MW of solar power generation capacity in Nepal.

Looking ahead, German financial cooperation is expected to increasingly focus on strengthening Nepal’s electricity distribution system to ensure a more reliable power supply for consumers and businesses. Alongside infrastructure investments, technical support provided through GIZ continues to enhance policy, systems, and capacity development, ensuring that the benefits of expanded electricity access reach communities across the country.

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Manish Raj Poudel
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