Upper Marsyangdi-A Hydropower Project Generates Over 3 Billion Units of Electricity

The 50 MW Upper Marsyangdi–A Hydropower Project, located in Bhulbhule, Marsyangdi Rural Municipality–8 of Lamjung, has supplied more than 3 billion units (kilowatt-hours) of electricity to the national transmission system as of Friday evening.

Constructed with 90% investment from China’s multinational Sino Hydropower Company and 10% from Nepal’s Sagarmatha Power Company, the project began in 2013, was completed in September 2016, and commenced commercial production on January 1, 2017. The construction cost was approximately NPR 16 billion.

According to Tong Qiangpo, head of the project’s Production Technology Department, the plant has exceeded its annual target of 33.5 million kWh by producing 37.3 million kWh. In 2024 alone, it generated 374 million units of electricity, achieving 107% of its annual target and 117.1% of its contractual production target.

As a run-of-river project, the electricity generated is supplied to Kathmandu, Pokhara, and other areas, playing a crucial role in reducing power shortages, particularly during the dry season.

A Power Purchase Agreement (PPA) with Nepal Electricity Authority was signed in 1995 at a rate of USD 0.07 (around NPR 7) per unit. The project also built a 20 km long, 125 kV transmission line to connect to the national grid.

In addition to power generation, the project has contributed to local development by constructing a 340-meter-long tunnel for local use, a Bailey bridge over the Marsyangdi River, and roads in various locations. According to Rural Municipality Chairperson Arjun Gurung, the tunnel has not only facilitated local movement but also helped promote tourism.

The project claims to have maintained strong performance in both safety and production over the past eight years.