Rahanghat Hydropower Project Connected to National Grid After Years of Construction

40 MW Rahughat Hydropower Project constructed by Raghuganga Hydropower Limited, a subsidiary of the Nepal Electricity Authority (NEA), in Myagdi has been successfully connected to the national transmission system. The project, located in Raghuganga Rural Municipality, has started electricity generation through its two units, each with a capacity of 20 MW. The electricity generated by the project is being evacuated to the national grid through the Kaligandaki Corridor 220 kV transmission line. As per the Power Purchase Agreement (PPA) between the project and the Nepal Electricity Authority, the project will now enter the trial generation phase. Following the successful completion of 15 days of test generation, the project is expected to begin commercial electricity generation. Dhirghayu Kumar Shrestha, Executive Director of the Nepal Electricity Authority and Chairman of the Raghuganga Hydropower board, said the project was completed despite challenging geological conditions, the COVID-19 pandemic, floods and other construction-related difficulties. The project is designed to operate at full capacity for four hours daily during peak demand periods, making it particularly important for managing electricity demand during the dry season. The project is expected to generate around 247.9 million units of electricity annually, with approximately 34% of its annual generation expected during the dry season. The estimated project cost stands at Rs. 9.17 billion, excluding interest during the construction period. The project was financed through investments from the Government of Nepal and the Nepal Electricity Authority, along with concessional financing under a line of credit from India’s EXIM Bank. For the civil and hydromechanical works, an Engineering, Procurement and Construction (EPC) contract was signed with Jaiprakash Associates Limited, India, while the electromechanical works were awarded to Bharat Heavy Electricals Limited (BHEL), India. WAPCOS Limited, India, supervised the construction of the project. The project was initially undertaken directly by the Nepal Electricity Authority with a planned capacity of 32 MW. However, after the contractor's poor performance led to the termination of the initial contract, the project was restructured, its capacity was increased to 40 MW, and construction was continued through Raghuganga Hydropower Limited under the company model.