1,040 MW to Join National Grid Next Year, Total Capacity to Reach 5,535 MW

Kathmandu — Finance Minister Dr. Swarnim Wagle has announced major plans and allocations for the clean energy sector through the budget.

Wagle said that in the upcoming fiscal year, 1,040 megawatts — comprising hydropower and 370 megawatts from solar projects — will be connected to the national transmission system, bringing the total installed capacity to 5,535 megawatts.

The Finance Minister said the construction of the 40-megawatt Rahughat Hydropower Project will be completed within this fiscal year. He said construction of the under-construction Tanahun reservoir project, Upper Modi A, Upper Modi, Upper Trishuli-3B, and Budhiganga projects will be accelerated.

Wagle said the financing of the 1,061-megawatt Upper Arun, 828-megawatt Uttarganga, 210-megawatt Chainpur Seti, 99-megawatt Tamakoshi-5, and Ghunsa Khola projects will be arranged and the tender process begun. He said the study process for the 417-megawatt Nalgad, 490-megawatt Arun-4, and 281-megawatt Naumure projects will be advanced. The tender process for the 439-megawatt Betan Karnali Hydropower Project — with investment that includes Employees Provident Fund contributors — will also begin.

The Finance Minister said construction of the 1,200-megawatt Budhigandaki reservoir project will be advanced under an empowered authority model. The financial closure of the 670-megawatt Dudhkoshi reservoir project will be completed and its tender process begun.

He said the necessary facilitation will be provided to develop projects with a capacity of around 3,000 megawatts being advanced through the Investment Board, including the 900-megawatt Arun III and the Lower Arun.

Wagle said funds have been allocated to complete the construction of under-construction transmission lines and substations. The Hetauda-Dhalkebar-Inaruwa 400 kV transmission line will be completed within the current fiscal year. Construction of the new 400 kV Khimti-Barabise-Kathmandu and Hetauda-Ratmate-Lapsiphedi-New Damauli-New Butwal transmission lines will be accelerated.

On the cross-border front, the Finance Minister said construction of the Butwal-Gorakhpur and Inaruwa-Purnia transmission lines will be accelerated. Studies on the Dhalkebar-Muzaffarpur-Sitamarhi, Lamki-Dododhara-Bareilly, Lamahi-Lucknow, Nijgadh-Motihari, and Chilime Hub-Kerung transmission lines will be completed and construction begun.

Wagle said construction of the Karnali Corridor national transmission line will be accelerated, as will electrification in Karnali's local governments that the national grid has not yet reached.

To begin the commercial production of green hydrogen, the Finance Minister said a 2.5-megawatt green hydrogen plant in Hetauda will be implemented as a pilot project. To address the electricity shortage during dry-season peak hours, a 100-megawatt Battery Energy Storage System programme will be launched in the Kathmandu Valley. He said the necessary budget has been arranged to advance green hydrogen production.

The Finance Minister said funds have been allocated for energy generation and the construction of transmission and distribution lines.