After a long wait, the 102-megawatt Bhotekoshi Hydropower Project in Sindhupalchowk has started trial production. The project, whose main generator is operated by Chilime Hydropower Company, a subsidiary of the Nepal Electricity Authority (NEA), began production following the successful testing of its transmission line last week, according to Ram Gopal Siwakoti, CEO of Bhotekoshi Hydropower Company.
The trial production began with one of the project’s three turbines. “Since the Bahrabise substation is not yet ready, we have been testing electricity via the Khimti substation on a line connecting it to the power house in central Bhotekoshi since last week,” said Siwakoti. “Despite many challenges, we have now succeeded in generating electricity.”
As work on the Bahrabise substation continues, electricity generated at Bhotekoshi is currently transmitted to the new Khimti substation via a 40-kilometer transmission line. “After a few days of testing, electricity will be connected to the national grid, and regular production will begin,” said Siwakoti, noting that revenue will start once it is linked to the national transmission line.
Construction of a two-kilometer section of the approximately four-kilometer transmission line connecting the project’s switchyard in Bahrabise Municipality-5 to the NEA’s Bahrabise substation in Municipality-3 is underway after reaching an agreement with local residents. The 220 kV single-circuit transmission line is expected to be completed before Dashain. Plans are in place to connect the generated electricity to the national grid via the Dhalkebar substation.
Siwakoti expressed confidence in the project’s trial production, saying it is expected to be 99 percent successful. Last year, a tunnel leak occurred when water was first sent through the 7.5 km tunnel, which runs from the dam in Chakuma, Bhotekoshi Rural Municipality (bordering China), to the power house in Jambu, Bahrabise Municipality.
The project was initiated in 2013 by former CEO Kulman Ghising with a target completion date of 2017. Delays were caused by local disputes, Covid-19, floods, landslides, and earthquakes. “We have brought Bhotekoshi, which was almost a failure, to a production-ready state,” said Siwakoti.
Once in regular production, the project is expected to generate 542.2m units of electricity annually. The NEA will purchase electricity at Rs 8.4 per unit in winter and Rs 4.8 per unit during the rainy season, generating annual revenue of approximately Rs 2.8bn for the company. The cost of electricity generation per megawatt is estimated at Rs 220m due to increased investment. During the dry season, the project will generate a minimum of 35 MW, while production could reach up to 110 MW during the rainy season.
The project’s initial estimated cost was Rs 12.28bn, excluding interest during construction, but the updated cost is Rs 16bn. Delays have resulted in daily interest payments exceeding Rs 5m.
The company’s ownership is split between founder shareholders (51 percent) and common shareholders (49 percent). Founder shareholders include NEA (10 percent), Chilime Hydropower Company (37 percent), Sindhupalchowk Hydropower Company (one percent), Nepal Araniko Hydropower Company (one percent), Sindhu Investment Company (1 percent), and Sindhu Bhotekoshi Hydropower (one percent). Common shareholders include Employees Provident Fund employees (19.5 percent), founding corporate body employees (3.5 percent), lending organization employees (one percent), Sindhupalchowk residents (10 percent), and the general public (15 percent). The company has already raised funds by issuing common shares.
