Overview

The Upper Tamakoshi Hydropower Project (UTKHEP) is the largest hydropower project in Nepal, representing a major milestone in the country’s journey toward energy self-sufficiency. Located in the Dolakha District in northeastern Nepal, this national pride project harnesses the power of the Tamakoshi River, a snow-fed river originating from the Himalayas.

• Installed Capacity: 456 MW

• Type: Run-of-the-river hydropower project

• Total Cost: Approximately NPR 52 billion (USD 500 million)

• Completion: Officially inaugurated in July 2021

Key Features

• Dam Location: Lamabagar, Dolakha District

• Powerhouse Location: Gongar, approximately 16 km downstream

• Transmission Line: Connected to Nepal’s national grid through a 220 kV double-circuit transmission line to Khimti

• Annual Energy Generation: Around 2,281 GWh (Gigawatt-hours)

Project Significance

1. National Energy Independence

Before UTKHEP, Nepal heavily relied on electricity imports from India. With this project online, the country now produces surplus electricity during the wet season, reducing dependency and fostering energy trade.

2. Boost to Domestic Economy

Being a domestically funded project (almost 100% funded by Nepali institutions), it showcases Nepal’s ability to invest in and manage large-scale infrastructure without significant foreign loans.

3. Engineering Feat

Constructing the project in a seismically active and geographically challenging Himalayan terrain is considered a remarkable engineering accomplishment.

Stakeholders and Funding

The UTKHEP is led by Upper Tamakoshi Hydropower Ltd. (UTKHPL), a company promoted by:

• Nepal Electricity Authority (NEA) – majority shareholder

• Nepal Telecom

• Citizen Investment Trust (CIT)

• Rastriya Beema Sansthan

• General public, NEA employees, and residents of Dolakha District

This unique financing model—through domestic equity and loans—served as a model for future hydropower development in Nepal.

Environmental and Social Impact

• Minimal Environmental Footprint: Being a run-of-the-river project, it avoids the massive flooding associated with large reservoirs.

• Community Benefits: The project created thousands of jobs during construction and contributed to local infrastructure, such as roads, bridges, and health posts.

• Challenges: Faced delays due to the 2015 earthquake, labor shortages, and COVID-19-related disruptions.

Challenges During Development

• 2015 Earthquake: Severely damaged infrastructure and delayed construction.

• Geological Difficulties: Complex rock formations and tunnel collapses required technical adjustments.

• Pandemic Delays: COVID-19 restrictions caused supply chain and labor issues, especially for foreign contractors and equipment.

Interesting Facts

• UTKHEP contributes over 30% of Nepal’s total electricity generation capacity.

• The project consists of six 76 MW units, all operational since mid-2021.

• The Tamakoshi River is a tributary of the Saptakoshi River, one of the largest river systems in South Asia.

Conclusion

The Upper Tamakoshi Hydropower Project stands as a beacon of Nepal’s technical capability, economic potential, and ambition for sustainable development. As the country continues to harness its vast hydropower potential, UTKHEP serves not only as an energy asset but also as a symbol of national unity and progress.